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.
AWS Savings Plans: What Are They?
AWS 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 …
AWS Reserved Instances: What Are They?
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 …
Understanding AWS Reserved Instance Pricing 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 …