Forecasting Price of Amazon Spot Instances Using Machine Learning

An auction-based cloud model is followed in the spot pricing mechanism, where the spot instances charge changes with time. The user is bound to pay for the time that is initially initiated. If the user terminates before the sessional hourly completion, then the customer will be billed on the entire hourly session. In case Amazon terminates the instance then the customer would not be billed for the partial hour. When the current spot price reduces to bid price without any notification the cloud provider terminates the spot instance, it is a big disadvantage to the time of the availability factor, which is highly important. Therefore, it is crucial for the bidder to forecast before engaging the bids for spot prices. This paper represents a technique to analyze and predict the spot prices for instances using machine learning. It also discusses implementation, explored factors in detail, and outcomes on numerous instances of Amazon Elastic Compute Cloud (EC2). This technique reduces efforts and errors for forecasting prices.