Explanation for hourly commitment rate amount for EC2 compute savings plan.
Hi, I want to provision 1 t4g.medium and 1 c6g.xlarge instance from EC2 which will run 24/30/365 and it seems EC2 Compute savings offers a discounted rate with a 1 year commitment. When I try to purchase a savings plan it asks for my hourly commitment amount. I have looked up the savings rate for the instances using the https://aws.amazon.com/savingsplans/compute-pricing/ calculator and am pasting an image of it.
I don't have any usage on the account I need to provision these on, so I don't have access to data or recommendations from AWS cost explorer either.
I had the following queries:
- I am confused as to what value is to be put in this field exactly to avail the respective discounted hourly rates for both these instances completely round the year (on demand rate or savings rate or some other rate altogether?)
- In order to avail the discounted rates for both instances, I have to purchase 2 separate savings plan for each of the instance types right and put their own hourly commitment rates?
- In order for the discount to take effect, should the savings plan be purchased into the account before provisioning the respective instances?
Thanks.
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Hello Sourasish,
- The hourly commitment amount is the total number of hours you expect to run your instances over the term of the Savings Plan. For example, if you plan to run your instances 24/7 for a year, you would commit to 8760 hours (24 hours/day x 365 days/year) for each instance.
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For a t4g.medium instance in the US East (N. Virginia) region, the On-Demand hourly rate is $0.036, and the Savings Plan rate is $0.025. Therefore, your hourly commitment for this instance would be $0.025 x 8760 = $220.
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For a c6g.xlarge instance in the US East (N. Virginia) region, the On-Demand hourly rate is $0.176, and the Savings Plan rate is $0.122. Therefore, your hourly commitment for this instance would be $0.122 x 8760 = $1074.4.
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Yes, you need to purchase a separate Savings Plan for each instance type. Savings Plans are instance family-specific, so you cannot mix instance types in a single Savings Plan. However, you can purchase multiple Savings Plans for the same instance family, as long as the total commitment does not exceed your expected usage.
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Yes, you should purchase the Savings Plan before provisioning the instances. Savings Plans are applied automatically to your usage, so you don't need to do anything else to receive the discounted rate. However, you should ensure that your usage aligns with your commitment to maximize your savings.
In summary, to purchase a Savings Plan, you need to estimate your usage for the term of the Savings Plan and purchase a separate Savings Plan for each instance type. You should purchase the Savings Plan before provisioning the instances to ensure that you receive the discounted rate. For additional guidance, please contact our Sales team for expert advice: https://aws.amazon.com/pricing/contact-us/.
- Ash R.
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So just to clarify, I should put $0.025 in the hourly commitment field within the purchase commitment section for the ec2 savings plan purchase window if I were to purchase it for the t4g.medium instance in US East region and my workload ran for 24 hours a day for 365 days a year in order to avail the discounted monthly rates as per the purchase summary. I updated my original question with a screenshot of what I'm meaning to clarify. Thanks.
Hi, the example may be misleading, hourly commitment should be $0.025 for t4g and $0.122 for c6g.