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Save Money On Your EC2 Instances Using The New Savings Plan from AWS.

by Nov 7, 2019

What is AWS New Savings Plans?

AWS Savings Plans is a  new flexible discount model in exchange for a commitment  to use a specific amount of compute usage (measured in dollars per hour e.g.$3/hour) for a period of either one or 3 year term.

 

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How can I make use of this offer from AWS ?

AWS Savings Plans is available in two flavours Customers can choose from two types of plans available .

1. Compute Savings Plans

If you are running different types of instances across various regions then this plan will help you reduce your costs up to 66%. The plans automatically applies to any EC2 instance irrespective of region, operating system, instance family etc.,and this includes instances part of EMR, ECS or EKS clusters. Shift from one instance to another, move a workload from one region to another,migrate from EC2 to Fargate and still take benefit from the Savings Plans without having to do anything.

2. EC2 Instance Savings Plans:

Applicable to a specific instance family within a region, this AWS Savings Plans provides the largest discount of up to 72%.This plan will cover usage of different sizes of the same instance types throughout a region. You can switch operating system (e.g.from Windows to Linux) and still continue to take benefit without any changes to Savings Plans. 

How will I be charged under this plan?

Once you commit to a specific amount of compute usage per hour, all usage up to that amount will be covered by the AWS Savings Plans chosen and anything beyond that will be billed at On Demand rate.

How different is this from Reserved Instance(RI) Saving?

AWS has  over the years continuously improved its Reserved Instances discount model thus helping customers to reduce their costs up to 72% but this comes with a burden of coordinating all your RI purchases and exchanges so that you will have optimal mix of instances for any usage changes over time.But this New Savings Plans can help you reduce costs just as RI but without the need to coordinate your RI purchases or worry about usage changes over the years.

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