Top Insights On AWS Reserved Instances

Are your cloud costs spiralling out of control?

AWS Reserved Instances can help reduce your AWS infrastructure costs. There are many important changes with respect to the new Reserved Instances, so we have put together the top insights to help you understand and better plan your RI purchases.

Save your money with Reserved Instances now! If you are new to reserving instances on Amazon Web Services then you can refer to our step by step instruction here. While reserving EC2 instances you should consider the below mentioned important key-points.

24 Hours of Billing:

All RI instances will attract 24 hours of billing irrespective of utilised hours, unlike previous generation Low or Medium utilisation instances.

RI Cost vs On-demand Cost:

The billing data for RI vs On-demand is computed at each billing hour for each of the instances in each availability zone. This is important to understand as if you have any weekend shut down activity for Dev/QA machines.

Break Even Periods for M3 Families:

The 1-YR RI requires 7.5 months and 3-YR requires 14.5 months for break even period. So unless utilisation is more than 80%, it doesn’t make sense to do RI for 1 year.

Partial vs All Upfront Payments:

The difference between Partial and All Upfront is approximately 50% for initial payment. It doesn’t make sense unless you run a pre-approved budget for Cloud where money can be spent early-on.

Partial vs All Upfront Savings:

The difference between savings rate for Partial Upfront vs All Upfront is around 1% for 1 year term and maximum of 2% for 3-year period. If you are cashflow conscious then Partial Upfront makes sense and All Upfront provides ease of budgeting.

Importance of Instance Families:

Choose new generation instance families like M3, C4 and R3 for your workloads. It makes sense to choose few types of instance families, so you can roll up and roll down the machine types based on future usage.

Within Botmetric’s cost analytics we have a separate section dedicated on helping you do Reserved Instance planning. We are releasing an upgraded version of the RI planner along with recommendations and improved utilisation information. You can check it out here after logging into your Botmetric application.

If you need any help with your RI planning give us a shout here or reach out to our team at