Savings Plans are a commitment based discount model. By making a commitment of spend you will use for 1 or 3 years, you receive a discount of up to 72%. They offer the same discounts as Reserved Instances, however offer a great deal more flexibility, and do not have the same management overhead.
In this workshop we will take you through your recommendations, and help you choose the right savings plan for your future business requirements.
Log into the console via SSO and go to the Cost Explorer dashboard:
Click on Savings Plans on the left menu:
You can see a description and some examples of Savings Plans under the Savings Plans heading, and estimated savings at the bottom::
Click on Recommendations on the left menu:
You can see the default options at the top, its a Compute savings plan, for 3-year, paying All upfront and based on the previous 30 days of usage.
At the bottom you can see your estimated before and after spend, along with the percentage saving, this is an ideal starting point to understand the overall return you can get on your commitment:
Click on Compute, 1-year and No upfront from the options above, and see the changes in before and after below. Note down the % saving, in this example it is 22%:
Click on EC2 Instance, 3-year and All upfront, and note the % saving, in this example it is now 46%:
This will typically be the highest and lowest savings you can achieve on the previous usage that was analyzed. You can vary those options to achieve the discount and features that most suit your business. You can also combine the options by purchasing multiple savings plans, making some commitment for 1-year with an upfront component, and some with no upfront commitment for a 3-year term.
While the commitment is a full 1 or 3 years, a Savings Plan will typically be paid off much sooner. We will analyze this in the next step.