Volume Discounts and Picking the Right Tools
Explore how to reduce AWS costs by leveraging volume discounts and purchase plans based on baseline usage. Understand the benefits of consolidating multiple AWS accounts for better billing visibility and cost savings. Learn to select the appropriate AWS service tiers and managed services to balance cost, functionality, and operational efficiency. This lesson equips you with practical strategies to manage AWS resources cost-effectively while maintaining reliability and scalability.
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As with many things, the more we buy, the more we can save. AWS is no exception, but we do have to go about these things in a structured manner.
Discounts for your baseline
Once we have enough data on our baseline usage, it's generally a good idea to buy that capacity in bulk because AWS offers discounts in the form of various purchase plans. Depending on the options and what might work out best for our situation, we can choose to either pay everything up front, pay only a portion upfront, or just pay along the way. These purchase plans are discounted over on-demand pricing because the customer is asked to commit to a certain amount of resources or a certain spend over a time—usually 1 year or 3 years.
Smart companies can greatly reduce their AWS costs by using these purchase plans to cover their baseline needs, and then just pay on-demand or Spot Instance rates for anything beyond that baseline. That said, these purchase plans can be a bit confusing, and there are quite a few permutations available. We’ll go deeper into these various options later.
Consolidate accounts
It is very common for companies ...