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Updated the Spot management gotchas section based on Kazu's feedback.

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@ -1350,7 +1350,7 @@ Billing and Cost Management
- Typical pooling implementations give anywhere between 45-60% cost optimizations and 40% reduction in spot instance creationg time. - Typical pooling implementations give anywhere between 45-60% cost optimizations and 40% reduction in spot instance creationg time.
- An excellent example of Pooling implementation described by Netflix ([part1](http://techblog.netflix.com/2015/09/creating-your-own-ec2-spot-market.html), [part2](http://techblog.netflix.com/2015/11/creating-your-own-ec2-spot-market-part-2.html)\) - An excellent example of Pooling implementation described by Netflix ([part1](http://techblog.netflix.com/2015/09/creating-your-own-ec2-spot-market.html), [part2](http://techblog.netflix.com/2015/11/creating-your-own-ec2-spot-market-part-2.html)\)
- **Spot management gotchas** - **Spot management gotchas**
- 🔸**Lifetime:** There is no guarantee for the lifetime of a Spot instance. It is purely based on bidding. If anyone outbids your price, the instance is taken away. Spot is not suitable for time sensitive jobs that have strong SLA. Instances will fail based on demand for Spot at that time. AWS does not send any signal that the instance is going away, except for the fact that it is going down. That makes it hard to figure out why the instance(s) went down. - 🔸**Lifetime:** There is [no guarantee](http://docs.aws.amazon.com/AWSEC2/latest/UserGuide/spot-interruptions.html) for the lifetime of a Spot instance. It is purely based on bidding. If anyone outbids your price, the instance is taken away. Spot is not suitable for time sensitive jobs that have strong SLA. Instances will fail based on demand for Spot at that time. AWS provides a [two-minute warning](http://docs.aws.amazon.com/AWSEC2/latest/UserGuide/spot-interruptions.html#spot-instance-termination-notices) before Amazon EC2 must terminate your Spot instance.
- 🔹**API return data:** - The Spot price API returns Spot prices of varying granularity depending on the time range specified in the api call.E.g If the last 10 min worth of history is requested, the data is more fine grained. If the last 2 day worth of history is requested, the data is more coarser. Do not assume you will get all the data points. There **will** be skipped intervals. - 🔹**API return data:** - The Spot price API returns Spot prices of varying granularity depending on the time range specified in the api call.E.g If the last 10 min worth of history is requested, the data is more fine grained. If the last 2 day worth of history is requested, the data is more coarser. Do not assume you will get all the data points. There **will** be skipped intervals.
- ❗**Lifecycle management:** Do not attempt any fancy Spot management unless absolutely necessary. If your entire usage is only a few machines and your cost is acceptable and your failure rate is lower, do not attempt to optimize. The pain for building/maintaining it is not worth just a few hundred dollar savings. - ❗**Lifecycle management:** Do not attempt any fancy Spot management unless absolutely necessary. If your entire usage is only a few machines and your cost is acceptable and your failure rate is lower, do not attempt to optimize. The pain for building/maintaining it is not worth just a few hundred dollar savings.
- **Reserved Instances:** allow you to get significant discounts on EC2 compute hours in return for a commitment to pay for instance hours of a specific instance type in a specific AWS region and availability zone for a pre-established time frame (1 or 3 years). Further discounts can be realized through “partial” or “all upfront” payment options. - **Reserved Instances:** allow you to get significant discounts on EC2 compute hours in return for a commitment to pay for instance hours of a specific instance type in a specific AWS region and availability zone for a pre-established time frame (1 or 3 years). Further discounts can be realized through “partial” or “all upfront” payment options.