Hi,
This detailled guide will help you understand: https://www.cloudzero.com/blog/savings-plans-vs-reserved-instances
In essence, Reserved Instances are based on the commitment to use an instance at a particular price over a specific period, while Savings Plans are based on the commitment to spend a particular dollar amount per hour over a specific period.
Best,
Didier Answer from Didier Durand on repost.aws
AWS
docs.aws.amazon.com › savings plans › user guide › what are savings plans? › compute savings plans and reserved instances
Compute Savings Plans and Reserved Instances - Savings Plans
Compute Savings Plans are a flexible pricing model that offers low prices, just like Amazon EC2 Reserved Instances (RI), but with added flexibility. With Savings Plans, you can reduce your bill by committing to a consistent amount of compute usage (measured in $/hour), instead of specific instance ...
AWS
docs.aws.amazon.com › amazon ec2 › user guide › amazon ec2 instances › amazon ec2 billing and purchasing options › reserved instances for amazon ec2 overview
Savings Plans - Amazon EC2 Reserved Instances and ...
With Reserved Instances, you make a commitment to a specific instance configuration, whereas with Savings Plans, you have the flexibility to use the instance configurations that best meet your needs. To use Savings Plans, you make a commitment to a consistent usage amount, measured in USD per hour.
Videos
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Savings Plans and Reserved Instances - What purchase strategy is ...
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Comparison of Amazon EC2 Reserved Instances vs. AWS Saving Plans ...
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AWS Savings Plans vs Reserved Instances - YouTube
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AWS Interview Question | Difference between Saving Plan and Reserved ...
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AWS Savings Plans Explained: Save Big Without Overcommitting - YouTube
Top answer 1 of 3
2
Hi,
This detailled guide will help you understand: https://www.cloudzero.com/blog/savings-plans-vs-reserved-instances
In essence, Reserved Instances are based on the commitment to use an instance at a particular price over a specific period, while Savings Plans are based on the commitment to spend a particular dollar amount per hour over a specific period.
Best,
Didier
2 of 3
1
Hi Steven,
It really depends on the resources you would like to cover, if you want to cover compute resources (EC2, Lambda, Sagemaker), I recommend SP as the pricing model is basically the same as RI, and it has more flexibility and you are commiting to the hourly cost, unless you have requirement to resell the Standard RI. Of course for other resources such as RDS, RedShift and OpenSearch (ElasticSearch) you can only purchase RI.
You can also get some insights from this YouTube video created by AWS: Savings Plans and Reserved Instances - What purchase strategy is right for you?
Hope it helps.
VMware
vmware.com › docs › white-paper-the-ultimate-guide-to-aws-reserved-instances-and-savings-plans pdf
White Paper: March 2023 The Ultimate Guide to AWS Reserved Instances
c5 .2xlarge instances will cost you about $250 per month . If you modify and split · your two c5 .4xlarge reservations into four c5 .2xlarge reservations, you will · benefit immediately from the cost savings, all while ensuring that your prepaid ... Figure 2: Laying an AWS Savings Plan on ...
Amazon Web Services
docs.aws.amazon.com › amazon ec2 › user guide › amazon ec2 instances › amazon ec2 billing and purchasing options › reserved instances for amazon ec2 overview
Reserved Instances for Amazon EC2 overview - Amazon Elastic Compute Cloud
With Reserved Instances, you make a commitment to a specific instance configuration, whereas with Savings Plans, you have the flexibility to use the instance configurations that best meet your needs. To use Savings Plans, you make a commitment to a consistent usage amount, measured in USD per hour.
AWS
docs.aws.amazon.com › aws whitepapers › aws whitepaper › amazon ec2 reserved instances › savings plans
Savings Plans - Amazon EC2 Reserved Instances and Other AWS Reservation Models
This pricing model offers lower prices on Amazon EC2 instances usage, regardless of instance family, size, OS, tenancy or AWS Region, and also applies to AWS Fargate and AWS Lambda usage. Savings Plans offer significant savings over On-Demand Instances, just like EC2 Reserved Instances, in exchange for a commitment to use a specific amount of compute power (measured in $/hour) for a one or three-year period.
AWS
aws.amazon.com › amazon ec2 pricing › reserved instances › pricing
EC2 Reserved Instance Pricing
4 days ago - For example, as soon as you have aggregated active Reserved Instances with a List Value totaling more than $500,000 in a single AWS Region, you will automatically receive a 5% discount on both upfront and hourly fees for all future Standard Reserved Instance purchases in that AWS Region, and those ...
AWS
docs.aws.amazon.com › savings plans › user guide › what are savings plans?
What are Savings Plans? - Savings Plans
Savings Plans offer a flexible pricing model that provides savings on AWS usage. You can save up to 72% on your AWS compute workloads. Compute Savings Plans provide lower prices on Amazon EC2 instance usage regardless of instance family, instance size, OS, tenancy, or AWS Region.
AWS
docs.aws.amazon.com › aws billing and cost management › user guide › consolidating billing for aws organizations › reserved instances › reserved instances and savings plans discount sharing
Reserved Instances and Savings Plans discount sharing - AWS Billing
You can use the console to activate Reserved Instance sharing discounts for an account. You can share Savings Plans with a set of accounts. You can either choose to not share the benefit with other accounts, or to open up line item eligibility for the entire consolidated billing family of accounts. Sign in to the AWS Management Console and open the AWS Billing and Cost Management console at https://console.aws.amazon.com/costmanagement/
AWS re:Post
repost.aws › knowledge-center › ec2-savings-plan-reserved-instances
Decide on Savings Plans or Reserved Instances for EC2 instances | AWS re:Post
June 2, 2025 - Savings Plans and Reserved Instances offer cost savings compared to On-Demand pricing. Typically, longer term commitment results in higher savings, such as a three-year term instead of a one-year term.