Reserved Instances with Aran Khanna

When a developer spins up a virtual machine on AWS, that virtual machine could be purchased using one of several types of cost structures. These cost structures include on-demand instances, spot instances, and reserved instances.

On-demand instances are often the most expensive, because the developer gets reliable VM infrastructure without committing to long-term pricing. Spot instances are cheap, spare compute capacity with lower reliability, that is available across AWS infrastructure. Reserved instances allow a developer to purchase longer term VM contracts for a lower price.

Reserved instances can provide significant savings, but it can be difficult to calculate how much infrastructure to purchase. Aran Khanna is the founder of, a company that builds cost management tools for AWS. He joins the show to talk about the landscape of cost management, and what he is building with

Sponsorship inquiries:


Transcript provided by We Edit Podcasts. Software Engineering Daily listeners can go to to get 20% off the first two months of audio editing and transcription services. Thanks to We Edit Podcasts for partnering with SE Daily. Please click here to view this show’s transcript.