✅Savings Plan is a pricing model that reduces your costs up to 72% compared to on-demand just like EC2 Reserved Instances. It has a 1–3-year commitment. It is charged per hour. It offers low prices on EC2 instances, AWS Fargate, and AWS Lambda usage.
1. Types of savings plan:
⁕ compute saving plan: This pricing model reduces your costs by up to 66% on Amazon EC2 instance usage based on its instance family, size, OS, tenancy, or AWS Region. It is similar to a convertible Reserved Instance.
⁕ EC2 Instance Savings Plan: This pricing model reduces your costs by up to 72% on the usage of individual instances within the region. You can change the instance within the family that should be within the region. For example, you can move from c5.xlarge running Windows to c5.2xlarge running Linux. It is similar to standard Reserved Instance.
⁕ Sagemaker savings plan: This pricing model reduces your costs up to 64% on eligible ML instance usage based on its sage maker instance family, size, and AWS Region. For example, you can change the usage of CPU instances from one region (US East) to another region (US West) for inference workloads at any time and automatically continue to pay the Savings Plans price.
2. payment options in savings plan:
Savings Plans are available in 3 different payment options.
No Upfront (No deposit) option does not require any upfront payment, and your commitment will be charged purely monthly.
The partial Upfront option offers lower prices on Savings Plans. With this option, you be charged at least half of your commitment upfront and the remaining will be charged monthly.
All Upfront option, you will receive the lowest prices and your entire commitment will be charged in one payment.
Last updated: 07-Jan-2024