Dynamic

Savings Plans vs Reserved Instances

Developers and organizations should use Savings Plans when they have predictable, steady-state workloads on AWS compute services to achieve cost savings of up to 72% compared to On-Demand pricing meets developers and organizations should use reserved instances when they have predictable, long-running workloads such as production servers, databases, or batch processing jobs that require consistent compute capacity. Here's our take.

🧊Nice Pick

Savings Plans

Developers and organizations should use Savings Plans when they have predictable, steady-state workloads on AWS compute services to achieve cost savings of up to 72% compared to On-Demand pricing

Savings Plans

Nice Pick

Developers and organizations should use Savings Plans when they have predictable, steady-state workloads on AWS compute services to achieve cost savings of up to 72% compared to On-Demand pricing

Pros

  • +It is particularly valuable for long-running applications, development environments, or production systems with consistent usage patterns, as it simplifies cost management without locking into specific instance types
  • +Related to: aws-cost-management, aws-ec2

Cons

  • -Specific tradeoffs depend on your use case

Reserved Instances

Developers and organizations should use Reserved Instances when they have predictable, long-running workloads such as production servers, databases, or batch processing jobs that require consistent compute capacity

Pros

  • +They are ideal for reducing cloud costs in scenarios where usage patterns are stable, as they offer savings of up to 75% compared to on-demand pricing
  • +Related to: aws-ec2, azure-virtual-machines

Cons

  • -Specific tradeoffs depend on your use case

The Verdict

Use Savings Plans if: You want it is particularly valuable for long-running applications, development environments, or production systems with consistent usage patterns, as it simplifies cost management without locking into specific instance types and can live with specific tradeoffs depend on your use case.

Use Reserved Instances if: You prioritize they are ideal for reducing cloud costs in scenarios where usage patterns are stable, as they offer savings of up to 75% compared to on-demand pricing over what Savings Plans offers.

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The Bottom Line
Savings Plans wins

Developers and organizations should use Savings Plans when they have predictable, steady-state workloads on AWS compute services to achieve cost savings of up to 72% compared to On-Demand pricing

Disagree with our pick? nice@nicepick.dev