Savings Plans

• Flexible pricing model offering significant cost savings on AWS compute usage.

• Applies to services like EC2, AWS Fargate, and AWS Lambda compute usage.

• Requires a commitment to a consistent amount of usage (measured in $/hour) over 1 or 3 years.

• Offers two main types: Compute Savings Plans and EC2 Instance Savings Plans.

• Compute Savings Plans provide the most flexibility across instance families, regions, and OS types.

• EC2 Instance Savings Plans offer higher discounts but apply only to specific instance families in a region.

• Automatically applies discounts to matching usage without upfront payments.

• Enables cost savings up to 72% compared to on-demand pricing.

• Supports partial upfront, all upfront, or no upfront payment options.

• Can be combined with Reserved Instances for additional savings.

• Provides usage reports and recommendations through AWS Cost Explorer.

• Flexible to changes in instance types and regions under Compute Savings Plans.

• Helps optimize costs for predictable and steady-state workloads.

• Requires careful planning to match commitment to actual usage to avoid overcommitment.

• Savings Plans are applicable only to compute services, not storage or data transfer.