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Article on the History of Spot Instances: Analyzing Spot Instance Pricing Change

I am a fan of Rackspace Spot, and use it personally. It started out being a pure play Kubernetes cluster provider, but recently they added support for VMs.

I was so impressed by its pricing and efforts at transparency that it motivated me to learn Kubernetes. I finally achieved the "cattle, not pets" nirvana. My Kubernetes cluster running a demo service costs me $14/month: $4/month for the spot instance, $10/month for the load balancer, and $free Kubernetes control plane (non-redundant; not intended for production). $14/month is an amazing value, as long as you know the limitations.

Although this article greatly emphasizes Rackspace's market-based prices, they do have some price controls. First, they have a reserve (floor) price on their compute. In their older data centers, it's $0.001/hr ($1/mo), while in their newer data centers it's 10x higher: $0.01/hr ($7/mo). Second, their bidding UI supports bids only in increments of $0.005/hr, so you actually can't bid $0.001: $0.005/hr ($4/mo) is the lowest supported. If everyone bids $0.005/hr to start, then is $0.001/hr even achievable as a market-clearing price?

Secondly, their pricing is not as sweet on everything else beyond spot compute. Load balancers are $10/mo each. On-demand instances are comparable to on-demand pricing in other cloud providers. (A 2 vCPU / 4 GB RAM instance in the older data center costs $27/mo; almost equal to AWS t4g EC2 instance with the same vCPU/RAM combo.)

Today I run a POC web service on Rackspace Spot, and I pay $14/month; this is the lowest achievable price on Rackspace Spot, and it is not production-quality.

If you run a production web service, your costs grow to $40/mo (redundant Kubernetes control plane) + $27/mo (on-demand cheapest instance) + $10/mo (load balancer) = $77/mo at a minimum. You'll also be paying for storage, but I don't include that. Spot instances don't even play a role here.

Is that still a great value compared to other providers? I am not sure. If it is, then Rackspace Spot marketing is focusing on the wrong thing. And if it's not a great value anymore, then it makes sense only if your workload is heavily dependent on interruptible compute.

5 hours agopmw

This article renders really poorly on iPhone Safari - the left side of the text is cut off a little bit (the example the first header reads as "keaways" instead of takeaways).

11 hours agocollingreen

It's not possible to read it in Firefox Mobile either unless you do it on landscape mode.