What are AWS Savings Plans
AWS Savings Plans is launched in November 2019, and allows customers to save up to 72% on Amazon EC2 / AWS Fargate in exchange for making a commitment (on how much they will spend per hour) to a consistent amount of compute usage for a 1 or 3-year term.
Customers can choose how much they wish to commit to (minimum $0.001 per hour) and layer Savings Plans on top of one another.
The major difference between Reserved Instances and AWS Savings Plans are that, rather than committing to a specific instance type in return for a discount, you are committing to a specific spend per hour.
It’s important to note that at this time, AWS doesn’t allow customers to change their Savings Plans contract once purchased or sell unused discounts in the AWS Marketplace. Once customers commit to a Savings Plan price, they are locked in for the one or three years they committed to.
There are two types of AWS Savings Plans:
These two types provide the choice between maximising financial benefit and sacrificing flexibility or maximising flexibility while benefiting from a smaller discount.
Here’s a quick comparison of the two types:
