What are AWS Savings Plans?
AWS Savings Plans are flexible pricing models that offer up to 72% discount compared to On-Demand prices. Unlike Reserved Instances, Savings Plans offer more flexibility: you commit to consistent usage (measured in USD per hour) for 1 or 3 years but can freely switch between services, regions, and instance types.
The main advantage of Savings Plans is the balance between cost savings and flexibility. You benefit from significant discounts without committing to specific instances. With changing workloads or modernization projects, you remain flexible.
Core Features
- Flexible Discounts: Up to 72% savings compared to On-Demand
- Three Types: Compute, EC2 Instance, and SageMaker Savings Plans
- Automatic Application: AWS automatically applies discounts to matching usage
- Term Options: 1 year or 3 years with upfront payment options
- Cost Explorer Integration: Recommendations based on historical usage
Typical Use Cases
Predictable Baseline Workloads
For workloads with stable baseline usage, Savings Plans offer significant savings. Analyze your usage over 3 to 6 months and commit to 70-80% of the baseline. Peaks are covered at On-Demand prices.
Multi-Service Environments
Compute Savings Plans cover EC2, Fargate, and Lambda. If you use multiple compute services or plan to migrate between them, Compute Savings Plans provide the necessary flexibility while saving costs.
Cloud Modernization
During modernization projects, workloads often change. With Compute Savings Plans, you can migrate from EC2 to Fargate or Lambda without losing your savings plans. Discounts automatically apply to the new services.
Advantages
- Significant cost savings without loss of flexibility
- Simple management via Cost Management Console
- Automatic application to optimal usage
- Combinable with On-Demand for peaks
Integration with innFactory
As an AWS Reseller, innFactory supports you with AWS Savings Plans: usage analysis, commitment recommendations, Savings Plans purchasing, and continuous optimization of your cloud costs.
Available Tiers & Options
Compute Savings Plans
- Flexible across EC2, Fargate, Lambda
- Region switching possible
- Instance type switching possible
- Lower discount than EC2 Instance Savings Plans
EC2 Instance Savings Plans
- Highest discount (up to 72%)
- Flexibility with OS and tenancy
- Bound to instance family and region
SageMaker Savings Plans
- Discounts for ML workloads
- Flexible across instance types
- Only for SageMaker
Typical Use Cases
Frequently Asked Questions
What are AWS Savings Plans?
AWS Savings Plans are flexible pricing models with up to 72% discount compared to On-Demand prices. You commit to consistent usage (in USD per hour) for 1 or 3 years and receive reduced prices on AWS compute services in return.
What is the difference between Compute and EC2 Instance Savings Plans?
Compute Savings Plans apply to EC2, Fargate, and Lambda and allow switching between regions, instance families, and services. EC2 Instance Savings Plans offer higher discounts but bind you to an instance family and region.
How do I choose the right commitment level?
Analyze your historical usage with AWS Cost Explorer. The Savings Plans Recommendations show how much you can save. Start conservatively with 70-80% of baseline usage and increase gradually.
What happens with excess usage?
Usage above your commitment level is charged at On-Demand prices. There are no penalties for underutilization, but you pay the full commitment even if you use less.