AWS offers the flexibility to opt for reserved instances at much-discounted rates in exchange for long-term commitments. However, with various types of RIs, regions, and other variants, it can be challenging to determine which one best fits your specific needs. Let nOps help you with the types of RIs and what factors to consider when choosing one for your business.

What Are The Types Of AWS Reserved Instances?

• Standard Reserved Instances:

Standard RIs are the most basic type of RIs, and they offer the most significant savings for long-term usage of a specific instance type. With a Standard RI, you commit to using a specific instance type for a period of one or three years, and in return, you receive a discount of up to 75% off the on-demand price.

Standard RIs are best suited for workloads with predictable and consistent usage patterns. For example, if you know that you will need a specific type of instance for a set period of time, such as a year or more, then a Standard RI is an excellent option for you.

• Convertible Reserved Instances:

Convertible RIs offer more flexibility than Standard RIs. With a Convertible RI, you have the option to change the instance type, family, or operating system of your RI, which can be beneficial if your workload needs to change over time.

Convertible RIs typically have a slightly lower discount than Standard RIs, but they offer the added flexibility of modifying your RI as needed. Convertible RIs are best suited for workloads that may have changing needs over time, such as development or testing environments, where the specific instance type may be less critical.

• Scheduled Reserved Instances:

Scheduled RIs are unique because they allow you to reserve capacity for specific time periods repeatedly. With Scheduled RIs, you commit to using a specific instance type for a specific time window each day, week, or month, and you receive a discount of up to 75% off the on-demand price.

Scheduled RIs are best suited for workloads with predictable and recurring usage patterns. For example, if you have an environment that runs every night simultaneously, you can reserve capacity for that specific time window each night and save money on your computing costs.

Choosing The Right AWS Reserved Instance Types

When it comes to choosing the right AWS Reserved Instance (RI) type, there are several factors that you need to consider to ensure that you are getting the best value for your money. Here are some key factors to consider:

• Usage pattern: You should analyze your usage pattern to determine the right RI type for your workload. For example, if you have a workload that runs 24/7, you may want to consider an all-upfront payment option for your RI. On the other hand, if you have a workload that runs for a few hours a day, consider a partial upfront or no upfront payment option.

• Instance type: You should choose an RI that matches the instance type you are using for your workload. This will ensure you get the best possible discount for your usage.

• Region: The availability and pricing of RI types may vary by region, so you should choose the region that is best for your workload and budget.

• Contract length: You should consider the length of the RI contract. AWS offers one-year and three-year contract options, so you should choose the contract length that aligns with your business needs.

• Flexibility: AWS offers different types of RI types, such as Standard, Convertible, and Scheduled, which offer different levels of flexibility. You should choose the RI type that aligns with your workload’s expected changes and your budget. 

By considering these factors, you can choose the right AWS Reserved Instance type that aligns with your workload needs and budget, helping you to maximize your savings on AWS cloud services.

How Can nOps Help You With RI Commitment Management?

nOps offers a risk-free commitment management solution that empowers your team to focus on innovation while balancing cost optimization with flexibility and adaptability in the cloud.

• nOps automatically analyzes historical usage patterns and recommends the optimal RI purchase options based on workload requirements, helping businesses maximize cost savings.
• nOps provides a completely risk-free commitment management system as we eliminate the need for manual processes and periodic reviews of commitments/purchasing decisions. nOps adjusts your commitments in real time and fully refunds any and all over-provisioned commitments.
• nOps provides detailed insights into RI utilization, allowing businesses to identify underutilized RIs and take corrective action to avoid unnecessary costs.

nOps provides real-time and risk-free automatic life-cycle management of Amazon EC2/RDS commitments. Get on-demand flexibility with the savings of 1-year Reserved Instances (Rls) – or better!

nOps is entrusted with over a billion dollars of AWS spend, and the platform was recently ranked #1 in G2’s cloud cost management category. Join our customers saving up to 50% by booking a demo today!