AWS Savings Plans vs Reserved Instances

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 …