Savings Plans is a flexible pricing model offering lower prices compared to On-Demand pricing, in exchange for a specific usage commitment (measured in $/hour) for a one or three-year period. AWS offers three types of Savings Plans – Compute Savings Plans, EC2 Instance Savings Plans, and Amazon SageMaker Savings Plans. Compute Savings Plans apply to usage across Amazon EC2, AWS Lambda, and AWS Fargate. The EC2 Instance Savings Plans apply to EC2 usage, and Amazon SageMaker Savings Plans apply to Amazon SageMaker usage. You can easily sign up a 1- or 3-year term Savings Plans in AWS Cost Explorer and manage your plans by taking advantage of recommendations, performance reporting, and budget alerts.
Savings Plans offers the flexibility to evolve your usage and continue to save money. For example, if you have a Compute Savings Plan, lower prices will apply automatically when you take advantage of new instance types or modernize your application to use Fargate or AWS Lambda. You also have the option to select different types of plans (Compute, EC2 Instance, or Amazon SageMaker), term length, and payment options based on your requirements.
Savings Plans offers significant cost savings in exchange for a commitment to consistent amount of usage for a 1- or 3-year term. For example, the EC2 Instance Savings Plans offer up to 72% savings compared to On-Demand pricing on your Amazon EC2 Instances usage. The Amazon SageMaker Savings Plans offer up to 64% savings on your Amazon SageMaker services usage.
Easy to use
Savings Plans is the easiest way to save on AWS usage. You can sign up for Savings Plans in two simple steps using the AWS Cost Explorer: customize your Savings Plans recommendations based on your requirements, and then add to the cart to purchase a plan. The recommended hourly commitment is calculated based on historical On-Demand usage and your choice of plan type, term length, and payment option.
How it works
“Capital One adopted Savings Plans across all our workloads and accounts, which allowed us to increase our utilization compared to Reserved Instances. We no longer need to worry about adjusting our Reserved Instances when our infrastructure needs change, Savings Plans automatically reallocates each hour to maximize our utilization. The change has allowed us to increase savings by 20%. We look forward to continuing to roll out Savings Plans as the rest of our Reserved Instances expire.”
Don Reid, Sr. Manager, Technology, Capital One