Savings Plans versus Reserved Instances

by Maxim Melamedov | November 10, 2019

Reserved Instances or Savings Plans - Let's compare all available offerings to determine which options will be the best choice for you.

Compute Savings Plans vs. Convertible RIs

  Compute Savings Plans Convertible RIs
Family flexibility Automated Manual
Regional flexibility Automated No
Covers AWS Fargate Yes No
Commitment duration 1Y - 3Y 1Y - 3Y

The winner in this benchmark is clearly Compute Savings Plans, as you get the same discount with broader options without the need to perform any manual action.

EC2 Instance Savings Plans vs. Standard RIs

  EC2 Instance Savings Plans Standard RIs
Pricing automatically applied to any tenancy and OS Yes No
Commitment duration 1Y - 3Y 1Y - 3Y
Duration flexibility No Yes - via the marketplace
Family flexibility No Yes - via the marketplace

Here are a couple of things you should consider before choosing one of these options, based on your specific use case:

  • If you’re expecting major OS changes within the same instance family in the upcoming year - choose EC2 Instance Savings Plans.
  • If you’re impacted by seasonality peaks, short-term projects, plan infrastructure changes, or still looking for more suitable instance family for your workloads - choose Standard RIs.

Let’s check the numbers:

OS Compute Savings Plans / Convertable RIs EC2 Instance Savings Plans / Standard RIs Difference
Linux 26% 36% 10%
Windows 13% 19% 6%
RHEL 16% 22% 6%
* m5.large, US-East-1 (Virginia), Shared tenancy, 1Y No Upfront was used to compare discounts.

As you can see, Compute Savings Plans/Convertible RIs provide much lower discounts while create locking and long-term commitment.

Ultimately, there isn’t a one-size-fits-all solution, as it depends on many variables such as your OS/Region/Family distribution, but your goal is clear:
to maximize your savings with minimal effort and be able to adopt to changes over time, click here to read more.

Cloudvisor’s solution identifies and leverages the best of all possible offerings and maximizes the received discounts while maintaining the widest RI coverage out there.