Savings Plans - Amazon EC2 Reserved Instances and Other AWS Reservation Models

Savings Plans

Savings Plans is another flexible pricing model that provides savings of up to 72% on your AWS compute usage. This pricing model offers lower prices on Amazon EC2 instances usage, regardless of instance family, size, OS, tenancy or AWS Region, and also applies to AWS Fargate and AWS Lambda usage.

Savings Plans offer significant savings over On-Demand Instances, just like EC2 Reserved Instances, in exchange for a commitment to use a specific amount of compute power (measured in $/hour) for a one or three-year period. You can sign up for Savings Plans for a one- or three-year term and easily manage your plans by taking advantage of recommendations, performance reporting and budget alerts in the AWS Cost Explorer.

AWS offers two types of Savings Plans:

  • Compute Savings Plans provide the most flexibility and help to reduce your costs by up to 66% (just like Convertible RIs). These plans automatically apply to EC2 instance usage regardless of instance family, size, AZ, Region, operating system, or tenancy, and also apply to Fargate and Lambda usage. For example, with Compute Savings Plans, you can change from C4 to M5 instances, shift a workload from EU (Ireland) to Europe (London), or move a workload from Amazon EC2 to Fargate or Lambda at any time and automatically continue to pay the Savings Plans price.

  • EC2 Instance Savings Plans provide the lowest prices, offering savings up to 72% (just like Standard RIs) in exchange for commitment to usage of individual instance families in a Region (for example, M5 usage in N. Virginia). This automatically reduces your cost on the selected instance family in that region regardless of AZ, size, operating system, or tenancy. EC2 Instance Savings Plans give you the flexibility to change your usage between instances within a family in that Region. For example, you can move from c5.xlarge running Windows to c5.2xlarge running Linux and automatically benefit from the Savings Plans prices.

Note that Savings Plans does not provide a capacity reservation. You can however reserve capacity with On Demand Capacity Reservations and pay lower prices on them with Savings Plans.

You can continue purchasing RIs to maintain compatibility with your existing cost management processes, and your RIs will work along-side Savings Plans to reduce your overall bill. However, as your RIs expire we encourage you to sign up for Savings Plans as they offer the same savings as RIs, but with additional flexibility.