What are Spot instances in Amazon EC2?

In Amazon EC2, we can even bid for getting a computing instance. Any instance procured by bidding is a Spot Instance. Multiple users bid for an EC2 Instance. Once the bid price exceeds the Spot price, the user with the highest bid gets it. As long as their bid price remains higher than the Spot price, they can keep using it.
Spot price varies with the supply and demand. Once Spot price exceeds Bid price, the instance will be taken back from the user.

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