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Hi, Increasing your AWS Savings Plan commitment has both pros and cons.
Pros:
- Reduced Risk of Underutilization: A higher commitment gives you a buffer for usage spikes, avoiding higher On-Demand rates and maximizing savings.
- Deeper Discounts: Committing more can unlock greater discounts, beneficial for volatile usage patterns.
Cons:
- Wasted Spend: Paying for unused hours can negate savings if you consistently underutilize your commitment.
- Reduced Flexibility: A larger commitment can limit your ability to adapt to changing needs, locking you into specific usage levels.
- Potential Overinvestment: The costs might not justify the benefits if usage peaks are rare or unpredictable.
Additional Considerations:
- Analyze Usage Patterns: Understanding your usage can help estimate needed buffer.
- Weigh Costs: Compare On-Demand rates and Savings Plan discounts to justify commitment.
- Risk Tolerance: Consider if you're comfortable with potentially wasting money for coverage peace of mind.
- Explore Alternatives: Look into Reserved Instances or Spot Instances for certain workloads or peaks.
Strategies:
- Multiple Smaller Plans: Gives more control over spending.
- Reserved Instances for Predictable Workloads: Can be more cost-effective for consistent usage.
- Spot Instances for Flexible Workloads: Offers savings for interruptible tasks.
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