Reserved Instances and Savings Plans
Maximize your AWS cost savings by leveraging Reserved Instances and Savings Plans. Secure discounts of up to 72% on compute, database, and application services through smart, long-term commitment strategies.
Maximize your AWS cost savings by leveraging Reserved Instances and Savings Plans. Secure discounts of up to 72% on compute, database, and application services through smart, long-term commitment strategies.
AWS Reserved Instances and Savings Plans offer substantial discounts compared to On-Demand pricing for customers who commit to using AWS services over a fixed period. By committing to 1 or 3-year terms, you can reduce costs significantly while gaining predictable budgeting for your cloud infrastructure.
Strategic commitment planning directly impacts your cloud budget and financial sustainability
Cut your compute costs dramatically with multi-year commitments while maintaining full operational flexibility.
Achieve cost certainty with locked-in rates, making cloud expense forecasting accurate and reliable.
Align your AWS capacity with actual workload demands to minimize wasted reserved capacity.
Gain confidence in your cloud spending with guaranteed rates protected from price increases.
Understand Your Baseline Workload
Before committing to Reserved Instances or Savings Plans, conduct a thorough analysis of your current AWS usage. Examine historical compute consumption, peak and off-peak patterns, and growth trends over 3-6 months to accurately size your reservation.
Reserved Instances vs. Savings Plans
AWS offers multiple commitment options: EC2 Reserved Instances for specific instance types, RDS Reserved Instances for databases, and Savings Plans for flexible compute coverage. Understanding the trade-offs between commitment depth, flexibility, and savings is crucial.
Ensure Full Benefit Realization
Once reserved, actively monitor your utilization to ensure you're benefiting from the discounted rates. Low utilization means you're paying for capacity you don't use, while over-reserved capacity requires waste management.
Leverage native AWS solutions to manage and optimize your Reserved Instances and Savings Plans
Track RI and Savings Plan coverage, discounts, and potential savings. Analyze purchasing recommendations.
Get personalized recommendations for optimal EC2 instance types and sizes based on historical utilization.
Identify unattached RIs, low-utilization reservations, and optimization opportunities across your account.
Receive automatic recommendations for the best RI or Savings Plan options based on your usage patterns.
Manage and automate scaling policies to maximize reservation utilization across your fleet.
Create, manage, and monitor Savings Plans with detailed coverage and utilization metrics.
Gather 2-4 weeks of historical data on EC2, RDS, ElastiCache, and other services to establish baseline consumption patterns.
Determine your minimum guaranteed capacity, acceptable workload variability, and flexibility needs for the next 1-3 years.
Compare EC2 Reserved Instances, Savings Plans, and other commitment models using AWS Cost Explorer and Compute Optimizer.
Model savings using AWS pricing tools. Determine payback period and total cost of ownership for different scenarios.
Execute RI or Savings Plan purchases based on your analysis. Consider staggered purchases to manage cash flow.
Configure CloudWatch dashboards and Cost Explorer reports to track utilization and coverage percentages.
Deploy auto-scaling policies to ensure your reserved capacity is fully utilized without waste.
Continuously assess utilization, update forecasts, and adjust reservations based on changing business needs.
Organizations achieve immediate and sustained cost reductions through strategic commitment planning
depending on commitment type and term
for reserved instance investment
of stable workload capacity
over reservation period
Let our AWS experts analyze your usage patterns and create a tailored Reserved Instance or Savings Plan strategy that maximizes your cost reductions.