Struggling with AWS cost optimization? Learn why Compute Savings Plans are the best option for reducing long-term compute costs for AWS Lambda and EC2 instances in this detailed guide.
Table of Contents
Question
To optimize long-term compute costs of AWS Lambda functions and Amazon EC2 instances, which AWS purchase option should be chosen?
A. Dedicated Hosts
B. Compute Savings Plans
C. Reserved Instances
D. Spot Instances
Answer
B. Compute Savings Plans
Explanation
Compute Savings Plans offer up to 66% off and are suitable for long-term compute cost optimization.
Why Compute Savings Plans Are Ideal
Compute Savings Plans are a flexible pricing model offered by AWS that allows you to save significantly on compute costs in exchange for a commitment to a consistent amount of usage (measured in $/hour) over a one- or three-year term. Here’s why they are the optimal choice:
Broad Applicability
- Compute Savings Plans apply not only to Amazon EC2 but also to AWS Lambda and AWS Fargate. This makes them ideal for diverse workloads that span multiple services.
- Unlike Reserved Instances, which are tied to specific instance configurations, Compute Savings Plans allow flexibility across instance families, sizes, regions, operating systems, and tenancy types.
Cost Savings
Compute Savings Plans can reduce costs by up to 54% compared to On-Demand pricing. This makes them highly effective for long-term, predictable workloads.
Flexibility
- They provide the ability to change instance types or regions without losing the discount, which is not possible with Reserved Instances.
- This flexibility ensures that you can adapt your infrastructure as your business needs evolve while still benefiting from cost savings.
No Upfront Payment Required
- You can opt for a “no upfront payment” plan, which allows you to spread costs over time rather than paying a large sum upfront.
For optimizing long-term compute costs across AWS Lambda functions and Amazon EC2 instances, Compute Savings Plans are the best choice due to their flexibility, broad applicability, and substantial cost savings. They strike the perfect balance between cost efficiency and operational flexibility, making them ideal for businesses with predictable usage patterns over extended periods.
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