aws savings plan pricing

AWS Saving Plans Calculation Example by Amazon

repost.aws › questions › QUgw-Sk0sjSJ2JM11c1QofMA › aws-saving-plans-calculation-example-by-amazon

Hi There The $47.18 from scenario 1 is just an example. Its based on the discounted rate that you get when you purchase a savings plan. It works like this: * You have an EC2 instance that costs $1/hour to run on-demand * The discounted rate for this instance is $.90/hour when you purchase a savings plan for 1 year. This is the discount you get for committing to 1 year of usage. * You purchase a savings plan commitment of $.90/hour which will cover the entire cost of running that instance. * If you spin up a second instance of the same type, you are billed $1.90/hour. ($.90/hour for the savings plan + $1/hour the on demand rate for the second instance) * If you terminate both instances, you are still billed $.90/hour because you committed to that amount for the year. Check out this youtube video for a good explanation of how savings plans work: https://www.youtube.com/watch?v=xjq-1CdvgQ8 Answer from Matt Barbieri on repost.aws

Amazon Web Services

aws.amazon.com › compute › savings plans › compute and ec2 instance

Compute Savings Plans

2 days ago - Savings Plans are a flexible pricing model that offer low prices on Amazon EC2, AWS Lambda, and AWS Fargate usage, in exchange for a commitment to a consistent amount of usage (measured in $/hour) for a 1 or 3 year term. When you sign up for a Savings Plan, you will be charged the discounted Savings Plans price for your usage up to your commitment.

Amazon Web Services

aws.amazon.com › products › cloud financial management › savings plans

Cloud Cost Savings - Savings Plans - AWS

2 days ago - Savings Plans is a flexible pricing model that provides up to 72% savings on your AWS usage compared to On-Demand prices.

Discussions

AWS Saving Plans Calculation Example by Amazon

Could someone show me how did Amazon do those Calculations in this example (link below) ? At least in the 1st example. I made my calculations and there is no way to totalize $47.13 as they said in ... More on repost.aws

repost.aws

December 15, 2022

Savings Plan

Hi, I do this for a living :-) For most organisations, it's a good idea to commit to a compute plan somewhere below the perfect number at first. 50% is a good start. This allows you to scale down significantly without hitting that commitment if you find other ways to save money on compute. You can always add a further commitment down the line. Staggering your hourly commitment also means you don't have the entire commitment expiring at once, so if you forget to renew you don't get bill shock. Do note that instance savings plans offer better discounts than compute plans, so they are recommended for EC2 instances that you're expecting will be up 24x7 for the next 12 months (the payoff is actually at the 9 month mark ish, but people hate paying for instances they aren't using, even if they've already saved enough to cover it). The big advantage of compute plans is the added flexibility - they just allow you to say "I'm going to spend at least $x on some kind of compute - give me a discount". You don't have to worry about region, family OS or even service. I always advise my clients not to be too complacent about it though, or you're going to end up paying more than you need to. More on reddit.com

r/aws

December 29, 2021

Create an instance after purchasing a EC2 Savings Plan

Savings plans are a billing thing, they just cover the spend of certain resources, including EC2 instances, and you just run the instances as before. For simplicity let's say you commit to pay 1$/h. That will cover capacity that might cost $1.3/h as on demand. Any instances that would cost you more than 1.3/h will be cheaper by the discount of $0.3/h. If they happen to cost below $1.3/h they will be entirely covered by the $1 savings plan, otherwise you pay the difference between $1.3/h and the actual hourly price of the instance. More on reddit.com

r/aws

August 13, 2024

I'm failing at trying to fit and understand AWS savings plan for infra budget

Savings plans are a little unintuitive. When you buy a savings plan you are committing to a certain spend per hour. For instance, $1/hour. Depending on which kind of savings plan you get that dollar will be worth more of less in terms of EC2 resources. I'm making these numbers up, but hopefully it will help illustrate… Alice runs two instances that cost $20/hour without any discounts. She then buys a savings plan for $10/hour all upfront for 1 year, which gives her a 50% discount. Now for every hour (which would normally cost her 2 instances * $20/hour = $40/hour), she has $10 worth of discounts that apply, so when that $10 worth of savings plan is applied to each hour, it acts like $20. So instead of being billed $40/hour, she'll only be billed $30/hour (and 10 of those dollars have already been paid as part of the savings plan). Bob also runs two instances that cost $20/hour without discounts. He buys a savings plan for $10/hour upfront for 3 years, which gives him a 75% discount. Now for every hour, his $10 worth of discounts acts like $30. Both of them committed to a $10/hour savings plan, but Bob's converted to more per hour in terms of EC2 compute than Alice's. It's important to realize that Alice's base rate was $40/hour, so it would not have made sense to buy a $40/hour commitment with a savings plan, because once the discount was factored in a lot of that commitment would have been unused and wasted. More on reddit.com

r/aws

January 11, 2021

Videos

09:09

YouTube

Amazon/AWS EC2 Pricing Simply Explained | On-Demand, Spot, Reserved, ...

January 29, 2024

8.86K