It’s no secret that using RIs – Reserved Instances generates significant savings on AWS – Amazon Web Services.
To help its customers get even more out of this savings, AWS last week launched Saving Plans, which like RIs, make it easy to buy computing hours and still generate significant discounts on your AWS account.
What is AWS Saving Plans?
It is a new flexible rebate model launched by AWS that aims to save money on the use of computing services. This model applies to Amazon EC2 service instances regardless of AWS family, size, operating system, or region (except China) and also to other computing services such as EMR, ECS, EKS, and Fargate.
Saving Plans offers more than one type of plan over different durations, payment options, and automatically adapts to computing usage, making it simple to save – one of the biggest pains for Reserved Instance users.
With Savings Plans AWS customers commit to a cost per dollar measured per hour over 1 to 3 years. If the expense exceeds the stipulated amount, it will be charged on-demand rates.