Choosing the right pricing strategy

Savings Plans

• SPs is a pricing model that can cut costs off of regular On-Demand instances, in exchange for a commitment to use a specific amount of compute power (Measures in $/hour)
• One to three-year terms

Reserved Instances

• " It is a billing discount applied to the use of On-Demand Instances in your account. These On-Demand Instances must match certain attributes of the Reserved Instances you purchased to benefit from the billing discount."
• "Improves the likelihood that the compute capacity you need is available in a specific Availability Zone when you need it."

Cost Explorer

What is cost explorer?

A tool that enables a user to view and analyze costs and usage. Viewing data from up to 12 months ago to forecasting the next 12. The longer it is used the more that can be saved. After data is collected, it will recommend Reserved Instances and give a more in-depth view of cost analysis.

Consolidated billing

Consolidated Billing

Sources

https://aws.amazon.com/blogs/aws-cloud-financial-management/cfm-follow-up/ Saving Plans
https://aws.amazon.com/savingsplans/
Reserved Instances
https://docs.aws.amazon.com/whitepapers/latest/cost-optimization-reservation-models/amazon-ec2-reserved-instances.html?sc_channel=cfm-blog&sc_campaign=choosing-the-aws-pricing-strategy-that-fits-your-business&sc_medium=optimize-and-save&sc_content=cfm-blog&sc_detail=link&sc_outcome=aw&sc_publisher=aws-cfm-talks&trk=choosing-the-aws-pricing-strategy-that-fits-your-business_cfm-blog_link