Can someone explain the concept of an “instance-hour” as used by cloud computing providers?

An instance hour is simply a regular hour where the instance was available to you, wether you used it or not. Amazon has priced their different types of instances differently, so you pay for the type of resource you are getting, not how much you use it.

Note also that instance hours are billed rounded up (for Amazon EC2). So starting up an instance and immediately shutting it down again incurs the cost of 1 instance hour.

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