instant hot water where frequent hot water
A cylinder provides that ( unless it has been emptied ). Frequent hot water drawn from a combi in small quantities can be less efficient than a well insulated cylinder if the heat exchanger ( from flame to water ) has a large thermal mass to heat before any heat reaches the water. A significant amount of water has to flow before any heat reaches the water. One reason why a small store of water is kept hot in some combi boilers. Wastes a bit of heat as the store loses heat and has to be re-heated but wastes far less water. Apparently on a metered water supply this waste of gas rather that waste of water can be overall less expensive for the home owner.