𝗔𝗪𝗦 𝗥𝗲𝘀𝗲𝗿𝘃𝗲𝗱 𝗜𝗻𝘀𝘁𝗮𝗻𝗰𝗲𝘀: 𝗧𝗵𝗲 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗶𝗻𝗴 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗧𝗵𝗮𝘁 𝗔𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗦𝗮𝘃𝗲𝘀 𝗠𝗼𝗻𝗲𝘆
𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗖𝗼𝗻𝘁𝗲𝘅𝘁: AWS is quietly phasing out Reserved Instances in favor of Savings Plans for newer infrastructure. However, RIs remain fully functional for existing workloads and older instance types, and RDS continues to support them.
Here's how to use RIs strategically while they're still available:
𝗣𝗵𝗮𝘀𝗲 𝟭: 𝗜𝗱𝗲𝗻𝘁𝗶𝗳𝘆 𝘁𝗵𝗲 𝗥𝗶𝗴𝗵𝘁 𝗪𝗼𝗿𝗸𝗹𝗼𝗮𝗱𝘀
• 𝗦𝘁𝗮𝗯𝗹𝗲 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗪𝗼𝗿𝗸𝗹𝗼𝗮𝗱𝘀: RIs for services running 24/7 with predictable usage patterns
• 𝗥𝗗𝗦 𝗙𝗶𝗿𝘀𝘁: Database Reserved Instances offer up to 69% savings and aren't being deprecated yet, start here
• 𝗧𝗵𝗲 𝟳𝟱% 𝗥𝘂𝗹𝗲: Only commit to RIs when utilization consistently exceeds 75% for 30+ days
𝗣𝗵𝗮𝘀𝗲 𝟮: 𝗖𝗵𝗼𝗼𝘀𝗲 𝘁𝗵𝗲 𝗥𝗶𝗴𝗵𝘁 𝗥𝗜 𝗧𝘆𝗽𝗲
• 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗥𝗜𝘀: Maximum discount (up to 72%) for workloads that won't change instance families
• 𝗖𝗼𝗻𝘃𝗲𝗿𝘁𝗶𝗯𝗹𝗲 𝗥𝗜𝘀: Moderate discount (up to 54%) with flexibility to change instance types as needs evolve
• 𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗥𝗜𝘀: Automatic application across AZs and instance sizes within the same family
𝗣𝗵𝗮𝘀𝗲 𝟯: 𝗢𝗽𝘁𝗶𝗺𝗶𝘇𝗲 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆
• 𝟯-𝗬𝗲𝗮𝗿 𝗔𝗹𝗹 𝗨𝗽𝗳𝗿𝗼𝗻𝘁: Deepest discounts for workloads you're sure about long-term
• 𝟭-𝗬𝗲𝗮𝗿 𝗣𝗮𝗿𝘁𝗶𝗮𝗹 𝗨𝗽𝗳𝗿𝗼𝗻𝘁: Balance savings and flexibility for established workloads
• 𝗡𝗼 𝗨𝗽𝗳𝗿𝗼𝗻𝘁: Lower savings but preserve cash flow and reduce commitment risk
𝗣𝗵𝗮𝘀𝗲 𝟰: 𝗠𝗼𝗻𝗶𝘁𝗼𝗿 𝗮𝗻𝗱 𝗔𝗱𝗷𝘂𝘀𝘁
• 𝗥𝗜 𝗨𝘁𝗶𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗥𝗲𝗽𝗼𝗿𝘁𝘀: Track whether purchased RIs are actually being used (target: 95%+)
• 𝗥𝗜 𝗖𝗼𝘃𝗲𝗿𝗮𝗴𝗲 𝗥𝗲𝗽𝗼𝗿𝘁𝘀: Identify which On-Demand spend should convert to RIs next
• 𝗤𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗥𝗲𝘃𝗶𝗲𝘄𝘀: Reassess commitments as workload patterns evolve
𝗧𝗵𝗲 𝗥𝗜 𝗥𝗲𝗮𝗹𝗶𝘁𝘆: AWS is moving toward Savings Plans for EC2, but RIs remain valuable for RDS and existing EC2 workloads. The most significant waste occurs when purchasing Standard RIs for unpredictable workloads or committing resources before usage patterns stabilize.
Start with RDS Reserved Instances for production databases, they're the easiest win and not being deprecated. Then, target EC2 instances that have been running continuously for 90+ days on established instance types. Use 1-year terms initially to test patterns before committing to 3-year terms.
Skip RIs entirely for development environments, batch processing, and anything with variable usage. For new infrastructure on modern instance types, use Savings Plans instead; they offer the same discounts with more flexibility.
What's your RI strategy as AWS transitions to Savings Plans? Are you still seeing value or making the switch?
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This is so cool! I totally relate to this feeling 😄. Just the other day, I faced a similar challenge and it was wild. How do u keep motivated?