When using AWS for a long time and using basic AWS workloads in terms of Compute processing power you may start to be concerned about… price. In fact, it is not necessary to put it on the cloud by default, there will be cost reductions, but it is necessary to have the right design, reasonable resource allocation and many tactics to reduce the price by up to 90%. This article Kevin shares about a type of strategy to reduce prices when using AWS, which is Saving Plans.
What is AWS Saving Plan?
Saving Plan is a flexible pricing model that allows you to save money on Computing-related workloads such as EC2, Fargate, or Lambda with a 1- or 3-year lifespan.
When you sign up to use Saving Plan you will be charged based on the discount used by Saving plan.
02 Types of Saving PLAn when using AWS
AWS currently offers 02 flexible Saving plans for your needs:
Compute Saving Plan:
provides the most flexible compute savings that save you up to 66% in usage. This plan automatically applies to EC2 instances regardless of (regardless) family type, size, AZ, Region, OS, tenancy.
And more specifically, Compute Saving Plan can also be applied to both Fargate and Lambda.
For example, you can apply Compute Saving Plan when moving from C4 instance to C5, move workloads from EC2 to Lambda, Fargate automatically, or move EC2 instances from Singapore region to Tokyo and still apply compute saving plan.
EC2 Saving Plan:
EC2 Saving plan offers more benefits by reducing costs by up to 72%. In return EC2 Saving Plan limits you more on the condition that you have to Commit instance family by Region. For example: M5 instance family in Singapore Region.
This Instance Family selection is not limited to AZ, Size (large or xlarge…), OS or Tenancy.
EC2 Saving Plan gives you the flexibility to switch instance types within the same flexible family and still benefit from EC2 Saving Plan. Example: Move M5.xlarge to M5.2xlarge.
Thus, EC2 Saving Plan offers a deeper discount than Compute Saving Plan (72% vs 66%) but in return Compute Saving Plan allows us the flexibility to use more types of compute such as Lambda, Fargate in all regions. You should consider which type to use to suit your resource requirements. The following table compares the similarities and differences between EC2 Saving Plan and Compute Saving Plan.
How to use Saving Plans
AWS Cost Explorer is a service that tracks your actual usage of your AWS account and recommends recommendations from there. Making this recommendation is based on historical usage of your on-demand workloads, cycles, and plan type.
When you register for the Saving plan, the compute will automatically be charged (charged) the discounted price of the Saving plan. If I use more than this commitment, I will be charged on-demand as usual.
Note for large organizations that purchase a saving plan for child AWS accounts in the same AWS Organization that will default to sharing with other accounts. You can configure it to restrict access to the savings plan purchase account. Note this lest you buy a Saving plan for your account and let another account use it ^^.
Some FAQs about Saving Plans:
Q: Can I use more than one Saving Plan at a time?
A: Yes. My bill will be calculated based on all active saving plans.
Q: How is Saving Plan different from EC2 Reserved Instance (RI).
A: The similarity between Saving Plan and EC2 RIs is savings versus on-demand provisioned. Saving Plan automatically deducted from your bill even cross region,
Q: Does Saving Plan have reserve capacity?
A: No. You want to reserve capacity you use On-demand capacity reservation.
Q: Can I buy RI and Saving Plan at the same time?
Some examples of Saving Plan
Compute Saving Plan for EC2
Assume in the above example for the m5.large instance:
- On-demand price: $0.096
- Price after buying a saving plan: $0.071 (save 26%)
I have a good new price except straight to use. Note that this price is the current price, subject to adjustment from time to time, usually cheaper. You should check the latest information at aws.amazon.com
EC2 Saving Plan
Let’s say this example has an m5.xlarge instance:
- Original on-demand price: $0.096
- Discounted price when buying compute saving plan up to 38% off to $0.06
Through this direct comparison example, the EC2 Saving Plan is reduced more deeply than the regular Compute Saving Plan. Which saving plan to choose depends on the specifics of your use of AWS. Hopefully, through this article, you also have a better understanding of AWS Saving plans, types of saving plans, and examples of saving plans.
More reference: https://aws.amazon.com/savingsplans/pricing/