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Savings Plan

Savings Plans ia a new and flexible discount model that provides you with the same discounts as Reserved Instances, in exchange for a commitment to use a specific amount (measured in dollars per hour) of compute power over a one or three year period.

AWS offers three types of Savings Plans:

  • Compute Savings Plans. Compute Savings Plans apply to usage across Amazon EC2, AWS Lambda, and AWS Fargate.
  • EC2 Instance Savings Plans. The EC2 Instance Savings Plans apply to EC2 usage.
  • Amazon SageMaker Savings Plans. Amazon SageMaker Savings Plans apply to Amazon SageMaker usage.

You can easily sign up a 1- or 3-year term Savings Plans in AWS Cost Explorer and manage your plans by taking advantage of recommendations, performance reporting, and budget alerts.

Note that Savings Plans does not provide a capacity reservation. You can however reserve capacity with On Demand Capacity Reservations and pay lower prices on them with Savings Plans.

You can continue purchasing RIs to maintain compatibility with your existing cost management processes, and your RIs will work along-side Savings Plans to reduce your overall bill. However, as your RIs expire we encourage you to sign up for Savings Plans as they offer the same savings as RIs, but with additional flexibility.

Reserved Instances

  • When you purchase a Reserved Instance in a specific Availability Zone, it provides a capacity reservation.
  • This improves the likelihood that the compute capacity you need is available in a specific Availability Zone when you need it.
  • Payment options: No upfront, Partial upfront, full upfront.