Savings Plans
Savings Plans is a flexible pricing model offered by Amazon Web Services (AWS) that provides significant discounts on AWS compute usage in exchange for a commitment to a consistent amount of usage (measured in $/hour) over a 1- or 3-year term. It applies automatically to eligible AWS services like Amazon EC2, AWS Fargate, and AWS Lambda, covering usage across any region, instance family, operating system, or tenancy. This model helps organizations reduce costs while maintaining flexibility in their cloud deployments.
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. 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. This is ideal for teams looking to optimize cloud spending while retaining the ability to adapt to changing needs across AWS services.