Skip to content

Savings Plan or Reserved Instance, which fits our compute usage?

Savings Plans are more flexible (apply across instance families, regions, also Fargate and Lambda), Reserved Instances cheaper for very predictable usage. For SMBs with varying workloads, Savings Plans usually win.

Try this first

  1. 1In Cost Explorer Recommendations, look at your last 60 days of compute usage. AWS makes its own proposal.
  2. 2For varying workloads: Compute Savings Plan, 1-year, no upfront. Gives discount without locking type or region.
  3. 3For very steady usage (database, fixed app-server) where you know the instance will still run next year, take a Standard RI for 1 or 3 years.
  4. 4Never cover 100 percent of usage. Aim for 70-80 percent covered by commitments, the rest on-demand for flexibility.
  5. 5On Azure this is Reservations or Savings Plans, on GCP CUDs (Committed Use Discounts). Same pattern.

When to bring us in

For commitments above a few thousand euro per month, a short FinOps review with someone who does this daily is usually worth the time.

See also

None of the above fits?

Describe your situation below. We pass your input plus the steps you already saw to our AI and return tailored next-step advice. If it's too risky to DIY, we'll say so.

Who are you?

For the AI question we need your email and company, so we can follow up if the AI gets stuck, and to prevent abuse.

Limited to 2 questions per hour and 5 per day, kept lean so the AI stays useful. For more, contacting us directly works better for you and us.

Or skip the DIY entirely

Our Managed IT clients do not look these things up. One point of contact, a fixed monthly price, resolved within working hours.