Spot Instances can reduce cloud compute costs by up to 90%, but interruption risks often limit their use to non-production environments. This guide presents a tiering framework that categorizes applications by criticality (Tier 0-3) and assigns appropriate On-Demand/Spot instance mixes. Using Cast AI's Pod Mutations with Kubernetes labels, teams can automatically route workloads to suitable instance types while implementing guardrails like Pod Disruption Budgets, multi-replica deployments, and topology spread constraints to maintain reliability for critical services.

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