What Is a Savings Plan? AWS Commitment Pricing, Explained
A Savings Plan is an AWS pricing agreement: commit to a fixed hourly compute spend for one or three years and pay up to 72 percent less than on-demand.
Savings Plan
A Savings Plan is an AWS pricing agreement: commit to a fixed hourly compute spend for one or three years and pay up to 72 percent less than on-demand.
A Savings Plan is a commitment, not a reservation. You promise AWS a fixed amount of compute spending per hour, for example $10 an hour for one year, and in exchange every dollar of eligible usage that falls under that commitment is billed at a discounted rate instead of the on-demand rate. Anything above the commitment simply bills at on-demand.
The three flavors
How the discount actually applies
Every hour, AWS takes your eligible usage, sorts it by discount rate, and applies the commitment to the usage with the largest savings first, until the committed dollars are used up. You pay the committed amount whether or not usage fills it, which is why the sizing question is the whole game: the commitment should sit at your usage floor, the level your compute never drops below, not at your average.
Savings Plan or Reserved Instance?
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