Discuss Savings Plans

Difficulty: 6/10

Cost Optimization, Pricing Models, AWS Billing

AWS Savings Plans Explained

Savings Plans provide a flexible pricing model that offers significant savings (up to 72%) compared to On-Demand prices in exchange for a commitment to a consistent amount of compute usage (measured in $/hour) for a 1 or 3-year period.

Types of Savings Plans

1
Compute Savings Plans: The most flexible; apply to EC2, Fargate, and Lambda usage across different regions, instance families, and operating systems.
2
EC2 Instance Savings Plans: Provide deeper discounts but are restricted to specific instance families within a specific region.
3
Automation: Discounts are applied automatically to usage that matches your plan attributes.

Scenario Questions

0-2 years experience

2-5 years experience

1Our team is migrating a batch processing workload from on‑demand to Savings Plans, but the usage patterns are irregular. How would you evaluate the right type of Savings Plan and what trade‑offs would you consider?

Follow-up Questions