Many processors have instructions which are of uniform format and width such as the ARM where all instructions are 32-bit long. other processors have instructions in multiple widths of say 2, 3, or 4 bytes long, such as 8086.
The advantages of fixed length instructions with a relatively uniform formatting is that fetching and parsing the instructions is substantially simpler.
For an implementation that fetches a single instruction per cycle, a single aligned memory (cache) access of the fixed size is guaranteed to provide one (and only one) instruction, so no buffering or shifting is required. There is also no concern about crossing a cache line or page boundary within a single instruction.
The instruction pointer is incremented by a fixed amount (except when executing control flow instructions--jumps and branches) independent of the instruction type, so the location of the next sequential instruction can be available early with minimal extra work (compared to having to at least partially decode the instruction). This also makes fetching and parsing more than one instruction per cycle relatively simple.
Having a uniform format for each instruction allows trivial parsing of the instruction into its components (immediate value, opcode, source register names, destination register name). Parsing out the source register names is the most timing critical; with these in fixed positions it is possible to begin reading the register values before the type of instruction has been determined. (This register reading is speculative since the operation might not actually use the values, but this speculation does not require any special recovery in the case of mistaken speculation but does take extra energy.) In the MIPS R2000's classic 5-stage pipeline, this allowed reading of the register values to be started immediately after instruction fetch providing half of a cycle to compare register values and resolve a branch's direction; with a (filled) branch delay slot this avoided stalls without branch prediction.
(Parsing out the opcode is generally a little less timing critical than source register names, but the sooner the opcode is extracted the sooner execution can begin. Simple parsing out of the destination register name makes detecting dependencies across instructions simpler; this is perhaps mainly helpful when attempting to execute more than one instruction per cycle.)
In addition to providing the parsing sooner, simpler encoding makes parsing less work (energy use and transistor logic).
A minor advantage of fixed length instructions compared to typical variable length encodings is that instruction addresses (and branch offsets) use fewer bits. This has been exploited in some ISAs to provide a small amount of extra storage for mode information. (Ironically, in cases like MIPS/MIPS16, to indicate a mode with smaller or variable length instructions.)
Fixed length instruction encoding and uniform formatting do have disadvantages. The most obvious disadvantage is relatively low code density. Instruction length cannot be set according to frequency of use or how much distinct information is required. Strict uniform formatting would also tend to exclude implicit operands (though even MIPS uses an implicit destination register name for the link register) and variable-sized operands (most RISC variable length encodings have short instructions that can only access a subset of the total number of registers).
(In a RISC-oriented ISA, this has the additional minor issue of not allowing more work to be bundled into an instruction to equalize the amount of information required by the instruction.)
Fixed length instructions also make using large immediates (constant operands included in the instruction) more difficult. Classic RISCs limited immediate lengths to 16-bits. If the constant is larger, it must either be loaded as data (which means an extra load instruction with its overhead of address calculation, register use, address translation, tag check, etc.) or a second instruction must provide the rest of the constant. (MIPS provides a load high immediate instruction, partially under the assumption that large constants are mainly used to load addresses which will later be used for accessing data in memory. PowerPC provides several operations using high immediates, allowing, e.g., the addition of a 32-bit immediate in two instructions.) Using two instructions is obviously more overhead than using a single instruction (though a clever implementation could fuse the two instructions in the front-end [What Intel calls macro-op fusion]).
Fixed length instructions also makes it more difficult to extend an instruction set while retaining binary compatibility (and not requiring addition modes of operation). Even strictly uniform formatting can hinder extension of an instruction set, particularly for increasing the number of registers available.
Fujitsu's SPARC64 VIIIfx is an interesting example. It uses a two-bit opcode (in its 32-bit instructions) to indicate a loading of a special register with two 15-bit instruction extensions for the next two instructions. These extensions provide extra register bits and indication of SIMD operation (i.e., extending the opcode space of the instruction to which the extension is applied). This means that the full register name of an instruction not only is not entirely in a fixed position, but not even in the same "instruction". (Similarities to x86's REX prefix--which provides bits to extend register names encoded in the main part of the instruction--might be noted.)
(One aspect of fixed length encodings is the tyranny of powers of two. Although it is possible to used non-power-of-two instruction lengths [Tensilica's XTensa now has fixed 24-bit instructions as its base ISA--with 16-bit short instruction support being an extension, previously they were part of the base ISA; IBM had an experimental ISA with 40-bit instructions.], such adds a little complexity. If one size, e.g., 32bits, is a little too short, the next available size, e.g., 64 bits, is likely to be too long, sacrificing too much code density.)
For implementations with deep pipelines the extra time required for parsing instructions is less significant. The extra dynamic work done by hardware and the extra design complexity are reduced in significance for high performance implementations which add sophisticated branch prediction, out-of-order execution, and other features.
For variable length instructions, the trade-offs are essentially reversed.
Greater code density is the most obvious advantage. Greater code density can improve static code size (the amount of storage needed for a given program). This is particularly important for some embedded systems, especially microcontrollers, since it can be a large fraction of the system cost and influence the system's physical size (which has impact on fitness for purpose and manufacturing cost).
Improving dynamic code size reduces the amount of bandwidth used to fetch instructions (both from memory and from cache). This can reduce cost and energy use and can improve performance. Smaller dynamic code size also reduces the size of caches needed for a given hit rate; smaller caches can use less energy and less chip area and can have lower access latency.
(In a non- or minimally pipelined implementation with a narrow memory interface, fetching only a portion of an instruction in a cycle in some cases does not hurt performance as much as it would in a more pipelined design less limited by fetch bandwidth.)
With variable length instructions, large constants can be used in instructions without requiring all instructions to be large. Using an immediate rather than loading a constant from data memory exploits spatial locality, provides the value earlier in the pipeline, avoids an extra instruction, and removed a data cache access. (A wider access is simpler than multiple accesses of the same total size.)
Extending the instruction set is also generally easier given support for variable length instructions. Addition information can be included by using extra long instructions. (In the case of some encoding techniques--particularly using prefixes--, it is also possible to add hint information to existing instructions allowing backward compatibility with additional new information. x86 has exploited this not only to provide branch hints [which are mostly unused] but also the Hardware Lock Elision extension. For a fixed length encoding, it would be difficult to choose in advance which operations should have additional opcodes reserved for possible future addition of hint information.)
Variable length encoding clearly makes finding the start of the next sequential instruction more difficult. This is somewhat less of a problem for implementations that only decode one instruction per cycle, but even in that case it adds extra work for the hardware (which can increase cycle time or pipeline length as well as use more energy). For wider decode several tricks are available to reduce the cost of parsing out individual instructions from a block of instruction memory.
One technique that has mainly been used microarchitecturally (i.e., not included in the interface exposed to software but only an implementation technique) is to use marker bits to indicate the start or end of an instruction. Such marker bits would be set for each parcel of instruction encoding and stored in the instruction cache. Such delays the availability of such information on a instruction cache miss, but this delay is typically small compared to the ordinary delay in filling a cache miss. The extra (pre)decoding work is only needed on a cache miss, so time and energy is saved in the common case of a cache hit (at the cost of some extra storage and bandwidth which has some energy cost).
(Several AMD x86 implementations have used marker bit techniques.)
Alternatively, marker bits could be included in the instruction encoding. This places some constrains on opcode assignment and placement since the marker bits effectively become part of the opcode.
Another technique, used by the IBM zSeries (S/360 and descendants), is to encode the instruction length in a simple way in the opcode in the first parcel. The zSeries uses two bits to encode three different instruction lengths (16, 32, and 48 bits) with two encodings used for 16 bit length. By placing this in a fixed position, it is relatively easy to quickly determine where the next sequential instruction begins.
(More aggressive predecoding is also possible. The Pentium 4 used a trace cache containing fixed-length micro-ops and recent Intel processors use a micro-op cache with [presumably] fixed-length micro-ops.)
Obviously, variable length encodings require addressing at the granularity of a parcel which is typically smaller than an instruction for a fixed-length ISA. This means that branch offsets either lose some range or must use more bits. This can be compensated by support for more different immediate sizes.
Likewise, fetching a single instruction can be more complex since the start of the instruction is likely to not be aligned to a larger power of two. Buffering instruction fetch reduces the impact of this, but adds (trivial) delay and complexity.
With variable length instructions it is also more difficult to have uniform encoding. This means that part of the opcode must often be decoded before the basic parsing of the instruction can be started. This tends to delay the availability of register names and other, less critical information. Significant uniformity can still be obtained, but it requires more careful design and weighing of trade-offs (which are likely to change over the lifetime of the ISA).
As noted earlier, with more complex implementations (deeper pipelines, out-of-order execution, etc.), the extra relative complexity of handling variable length instructions is reduced. After instruction decode, a sophisticated implementation of an ISA with variable length instructions tends to look very similar to one of an ISA with fixed length instructions.
It might also be noted that much of the design complexity for variable length instructions is a one-time cost; once an organization has learned techniques (including the development of validation software) to handle the quirks, the cost of this complexity is lower for later implementations.
Because of the code density concerns for many embedded systems, several RISC ISAs provide variable length encodings (e.g., microMIPS, Thumb2). These generally only have two instruction lengths, so the additional complexity is constrained.
One (sort of intermediate) alternative chosen for some ISAs is to use a fixed length bundle of instructions with different length instructions. By containing instructions in a bundle, each bundle has the advantages of a fixed length instruction and the first instruction in each bundle has a fixed, aligned starting position. The CDC 6600 used 60-bit bundles with 15-bit and 30-bit operations. The M32R uses 32-bit bundles with 16-bit and 32-bit instructions.
(Itanium uses fixed length power-of-two bundles to support non-power of two [41-bit] instructions and has a few cases where two "instructions" are joined to allow 64-bit immediates. Heidi Pan's [academic] Heads and Tails encoding used fixed length bundles to encode fixed length base instruction parts from left to right and variable length chunks from right to left.)
Some VLIW instruction sets use a fixed size instruction word but individual operation slots within the word can be a different (but fixed for the particular slot) length. Because different operation types (corresponding to slots) have different information requirements, using different sizes for different slots is sensible. This provides the advantages of fixed size instructions with some code density benefit. (In addition, a slot might be allocated to optionally provide an immediate to one of the operations in the instruction word.)