In November 2019 AWS introduced Savings Plans as a simpler and more flexible alternative to Reserved Instances, which provide significant discounts for volume purchases of instances.
The Pros and Cons of AWS Savings Plans
Savings Plans provide discounts of up to 72% on Amazon EC2, AWS Fargate and Lambda usage, compared to on-demand rates. You have to make a commitment to a specific amount of compute usage, measured in dollars per hour, for a 1 or 3 year term. Any usage beyond that commitment is charged at on-demand rates. In this article we will …
The Pros and Cons of AWS Reserved Instances
Hourly billing on AWS allows you to get your feet wet without overcommitting budgets and other resources in the cloud. As demand increases however, and a fixed number of instances are constantly running, hourly rates can quickly add up, forcing companies to consider volume purchases in the cloud. Reserving a set number of instances one or three years in advance …
AWS Reserved Instance Payment Options
The default payment option for Amazon Web Services is on-demand pricing, which allows organizations to pay for only the services that they use by the hour. But if you are running instances continuously, on-demand pricing can quickly drive up costs. According to research, companies waste $62 billion in the cloud by paying for capacity they don’t need. AWS Reserved Instances …