Prompt
Do I need to pay for reserved instances for an app with steady traffic?
Latest observation
Oct 7, 2026
OpenAI APIWeb search: off
Not necessarily — reserved instances are worth considering for steady traffic, but only if the workload is likely to run continuously for a long enough period and the service is one where reservations actually apply.
Rule of thumb
- Yes, consider them if your app uses the same compute resources 24/7 and you expect that to continue for at least 1 year.
- No, skip them if traffic is steady but:
- you may need to scale up/down often,
- the app might be retired or moved,
- you’re not sure about usage for the next year,
- or the pricing model for your cloud service doesn’t benefit much from reservations.
In practice
For steady traffic, you usually compare:
- On-demand pricing: more flexible, higher cost
- Reserved / committed pricing: lower cost, less flexible
- Savings plans / committed use discounts: often better than classic reserved instances, depending on the cloud
Important distinction
If you’re on:
- AWS: “Reserved Instances” can help for EC2/RDS, but Savings Plans are often simpler and more flexible for compute.
- Azure: look at Reserved VM Instances / reservations.
- GCP: look at Committed Use Discounts.
Practical recommendation
If your app has truly steady baseline usage:
- Estimate the minimum always-on capacity
- Leave burst/spike capacity on-demand
- Commit only for the baseline amount
That way you keep flexibility and still reduce cost.
If you want, I can help you decide based on your cloud provider and current instance type/usage pattern.