TrackIt – Cloud Consulting & S/W Development
  • Home
  • Solutions
    • Media & Entertainment
    • HPC – High Performance ComputingHigh Performance Computing
    • Software DevSoftware Development; Serverless, CI/CD, UI/UX, API Integration
    • Migrate to AWS
    • DevOpsDevOps, AWS Cloud Consulting
    • StorageData Storage
    • Financial Services
  • Services
    • AWS Services
      • Well-Architected Review
      • Amazon API Gateway
      • AWS Lambda
      • Amazon DynamoDB
      • Amazon EKS
      • Amazon OpenSearch
      • AWS Elemental MediaConvert
      • Focus on Video AI/ML
      • Virtual Desktop/Studio in the Cloud
      • Amazon CloudFront
      • Chime SDK
      • DevOps Guru
    • Hammerspace Integration
    • Autodesk Integration Partner
    • Cloud Security
  • Resources
    • Blogs
    • White Papers
    • Case Studies
    • Press Releases
    • Trainings and Workshops
  • Tools & Apps
    • DeepScan
    • Trackflix
    • Tagbot
    • TrackIt Cost Management App
  • Managed Services
  • About Us
header image

TrackIt Blogs

Read the latest cloud technology news and learn new tips and tricks to get the most out of your cloud.

  • Contact Us

Categories

Automation AWS data rooms Data Storage DevOps DevTools Monitoring Optimization Services TrackIt

Tags

aws AWS EC2 AWS S3 AWS Studio in the Cloud beginners chainlink cloudformation consul cost optimization data data analytics data lake data warehouse Demonstration disaster recovery docker etl github glue Hammerspace hashicorp high availability HP Anyware HPA Tech Retreat 2023 HPTeradici iac in-house IT json lambda live video managed services Media Workflows migration open source reduce cost Remote Serverless solution architecture terraform trackit tutorial vmix well architected Windows Containers workflow overview

Dec. 12, 2018

—

Reduce Cloud Spending by Up to 50% with Reserved Instances

TAGS : aws, cost optimization, reduce cost

Of all the means available to AWS users who are looking to reduce their cloud spending, there is one that definitely ranks amongst the most effective – Reserved Instances.

Maximizing AWS Cost Savings: How Reserved Instances Help Reduce Cloud Spending by Up to 50% - image 1

What are Reserved Instances ?

A Reserved Instance is a reservation of resources and capacity for a specific duration (1 or 3 years). Instances are available at various levels of computing power and AWS users purchase them at contract prices, plus hourly rates. The reservations of these instances are region-specific (us-east-1, eu-west-2, etc.) and not linked to a specific Instance to computing time. Users purchasing Reserved Instances can choose between Regular Reserved Instances or Convertible Reserved Instances (which provide more flexibility for an additional charge).

The basic idea is that when users purchase reservations, they commit to paying for all of the hours of the 1- or 3- year term; in exchange, the hourly rate is lowered. Details aside, what’s essential to know is that if used wisely, Reserved Instances have the potential to significantly lower your cloud bill.


How Do Reserved Instances Help Save Money ?

Reserved Instances come in handy when AWS users know in advance that they’ll be needing a certain duration of computing power in the future. Purchasing Reserved Instances provides significant cost savings for the same amount of computing power, in comparison to new instances.

When purchasing Reserved Instances, users can opt for no up-front payment, partial payment or pay in full. The higher the upfront payment made by the user, the more savings (s)he accumulates. What follows is a table that perfectly illustrates the utility of Reserved Instances.

The different prices for 5 separate instances are outlined in the table below (RI stands for Reserved Instances):

[table id=1 /]

As illustrated by the table, by purchasing Reserved Instances, users have the potential to reduce their spending by up to 50%! Now that’s a significant reduction in spending, especially for companies who have relatively large footprints on AWS.

Saving Money By Accurately Predicting Future Needs

At the end of the day, it would be useful to note that it all boils down to one thing: accurately predicting the amount of computing power you’ll be needing in the future. This can be achieved by analyzing billing data for the past few months or simply by having the technical expertise required to make an accurate forecast of future needs.

Conclusion

In conclusion, Reserved Instances are an effective means for AWS users to reduce their cloud spending. By reserving resources and capacity for a specific duration at contract prices and lower hourly rates, users can save up to 50% compared to purchasing new instances. To maximize cost savings, accurate prediction of future computing needs is necessary. By analyzing billing data and forecasting future needs, companies can take advantage of the benefits of Reserved Instances and optimize their AWS usage to achieve significant cost savings. Ultimately, investing time and effort into understanding and leveraging Reserved Instances can lead to more efficient and cost-effective AWS usage.

About TrackIt

TrackIt, an Amazon Web Services Advanced Consulting Partner based in Marina del Rey, CA, offers a range of cloud management, consulting, and software development solutions. Their expertise includes Modern Software Development, DevOps, Infrastructure-As-Code, Serverless, CI/CD, and Containerization, with a focus on Media & Entertainment workflows, High-Performance Computing environments, and data storage.

TrackIt excels in cutting-edge software design, particularly in the areas of containerization, serverless architectures, and pipeline development. The company’s team of experts can help you design and deploy a custom solution tailored to your specific needs.

In addition to cloud management and modern software development services, TrackIt also provides an open-source AWS cost management tool to help users optimize their costs and resources on the platform. With its innovative approach and expertise, TrackIt is the ideal partner for organizations seeking to maximize the potential of their cloud infrastructure.

reserved instances - logo trackit
blanc
blanc 1 1
Previous Next

AWS Advanced Consulting Partner - Cloud Management, Consulting, and Software Development Solutions

Quick links

    • Home
    • Solutions
    • Services
    • White Papers
    • Blog
    • About Us
    • Privacy Policy

Tools & Apps

    • DEEPSCAN
    • Trackflix
    • TrackIt App
    • Tagbot

get in touch

    • Phone: +1 323-230-0042
    • Email: info@trackit.io

    • TrackIt 578 Washington Blvd #260 Marina Del Rey, CA 90292
  • @TrackIt 2022