Applying Savings Plans in a Customer-Specific Organization

Order of Application for Savings Plans

  • Savings Plans are Different from RI’s, as with an RI you get the exact discount or not, with Savings Plans you can get a variable discount. This means customers method of purchasing a savings plan can actually result in optimal, or sub-optimal discount
  • Understanding the Order of Savings Plan Discounts in an Organization:
    • SP Discount starts in the account that purchased the Savings Plan
      • Apply Savings plan commitment from highest discount to lowest discount (within the purchase account)
      • SP exhausts all possible savings opportunity in the account
    • Then-> Savings Plan looks at usage within other accounts
      • Savings plan commitment is then applied from highest discount to lowest discount across linked accounts until exhausted.
  • Due to savings plan commitment exhausting in purchasing account first, it could be used up on the lowest discount item (ie. purchase account has some low discount items that eat up all of the savings plan, before it was able to look at another high-discount opportunity elsewhere in the organization)
  • Best Practice to Optimize Savings Plans:
    • For customers leveraging AWS Organizations, Purchase the savings plan in an account with ZERO usage within the organization. This will allow it to always find the best discount across the customers entire organization.
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