How to Use AWS Savings Plans | A Step by Step Guide
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How to Use AWS Savings Plans | A Step-by-Step Guide
🎥: • How to Use AWS Savings Plans | A Step...
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0:00 - Intro
0:48 - How to Use AWS Savings Plans
7:32 - Conclusion, Please Like, Share, Comments and Subscribe
8:10 - Thank You!
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Step 1: Understand Your Current Usage
Before purchasing a Savings Plan, it’s crucial to analyze your current AWS usage patterns to identify where you can save the most.
Review Usage Data: Use AWS Cost Explorer to review your historical usage and identify services where you’re consistently spending money, such as EC2 instances, Lambda functions, or Fargate.
Identify Eligible Services: Savings Plans can apply to EC2, Fargate, and Lambda usage. Determine which of these services you use regularly and could benefit from a Savings Plan.
Step 2: Choose the Right Type of Savings Plan
AWS offers two types of Savings Plans:
1. Compute Savings Plans: These provide the most flexibility, as they automatically apply to any EC2 instance regardless of region, instance family, operating system, or tenancy. They also apply to AWS Fargate and Lambda.
2. EC2 Instance Savings Plans: These offer lower costs but are more restrictive, as they apply only to specific EC2 instance families within a chosen region.
Evaluate Your Needs: If you need flexibility across different instance types and services, a Compute Savings Plan might be best. If you have predictable usage of specific instance types in a single region, an EC2 Instance Savings Plan may provide better savings.
Step 3: Select a Term and Payment Option
AWS Savings Plans offer different term lengths and payment options:
Term Length: Choose between a one-year or three-year commitment. A longer term typically provides greater savings.
Payment Options:
All Upfront: Pay the full amount upfront for the highest discount.
Partial Upfront: Pay a portion upfront and the rest monthly.
No Upfront: Pay nothing upfront, but receive a smaller discount.
Consider Your Budget: Balance your desire for savings with your budget constraints when selecting a payment option.
Step 4: Purchase a Savings Plan
Once you’ve reviewed your usage and selected the appropriate Savings Plan type, term, and payment option, it’s time to purchase your Savings Plan.
1. Navigate to AWS Cost Management:
Go to the AWS Cost Management dashboard in the AWS Management Console.
Click on Savings Plans in the left-hand menu.
2. Select a Plan:
Click Purchase Savings Plans.
Choose between Compute Savings Plans or EC2 Instance Savings Plans.
3. Configure Your Plan:
Enter the desired hourly commitment based on your usage analysis.
Choose the term length and payment option that fits your needs.
4. Review and Confirm:
Review the details of your Savings Plan purchase, including the expected savings.
Confirm your purchase to activate the Savings Plan.
Step 5: Monitor Savings Plan Utilization
After purchasing a Savings Plan, it’s important to monitor its utilization to ensure you’re maximizing your savings.
1. Access Savings Plans Reports:
In the AWS Cost Management dashboard, navigate to Savings Plans.
View the Utilization and Coverage reports to see how much of your eligible usage is being covered by the Savings Plan.
2. Adjust as Needed:
If you notice underutilization (e.g., not all your commitment is being used), consider adjusting your workloads to better align with your Savings Plan or purchasing an additional Savings Plan.
Use AWS Cost Explorer to track ongoing usage and identify areas where additional Savings Plans could provide further savings.
Step 6: Review and Optimize Periodically
Periodically reviewing and optimizing your Savings Plans is crucial to ensuring long-term cost savings.
Regular Reviews: At least quarterly, review your Savings Plan utilization and coverage to ensure you’re maximizing your benefits.
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