Simplified AWS RI - Suggestions from Botmetric
AWS has launched a simplified Reserved Instances plan by removing the earlier complexity, you would have received an email from them earlier this week.
Please find below a quick overview of the proposed changes:
1. No Upfront Fees - You can get upto 30% overall savings compared on-demand price by going with this plan. However, you would commit to pay for RI rate over 1 year period. This plan is available only for 1 year RI period.
2. Partial Upfront Fees - You can pay part of the fees upfront and get upto 60% savings over on-demand plan for 3 year RI term. This is our recommended plan as it best suits for most businesses and workloads on AWS.
3. Full Upfront Fees - You can pay full fees upfront and get upto 63% discount for 3 year RI term. The upfront fees are almost 2X for this plan compared to partial upfront plan. For certain workloads like databases, search servers on EC2 etc can be reserved under this option.
Botmetric recommends looking at option 2 as you can save 50% in terms of upfront fees and cost benefit is almost as good as option 3. Also we strongly recommend going with 3 year RI plan instead of choosing one year RI as it's best suited for most scenarios.
You can learn more about AWS Reserved Instances and FAQs if you have additional questions on AWS RI.