Reserved vs Savings Plan

Reserved capacity binds you to a specific instance type or family in a region; Savings Plans bind you to a dollar amount per hour across instance types. The trade-off: Reserved capacity is cheaper for predictable workloads; Savings Plans are more flexible for shifting workloads.

Allocation

The team that bought the reservation isn't always the team that used it. Allocating cost to consuming projects (not purchasing teams) requires walking the underlying usage records.

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Frequently asked

Are reservations refundable?

Some are convertible or sellable on the AWS Reserved Instance Marketplace. Most are not refundable, which is why over-commitment is costly.

Should small teams buy reservations?

Usually no — small teams' workloads shift too much. Savings Plans or stable on-demand are typically the right starting point until baseline is provably stable for 6+ months.