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Maximize Cloud ROI: Harnessing AWS Savings Plans

A financial lever for optimizing cloud costs without sacrificing flexibility.

AWS Savings Plans are your financial lever for optimizing cloud costs without sacrificing flexibility. Think of them as a smarter, more adaptable version of Reserved Instances. Savings Plans offer significant discounts on AWS compute usage in exchange for a commitment to a consistent amount of usage (measured in dollars per hour) for a 1 or 3-year term. For finance professionals, it's the key to balancing cost savings with the need for operational agility in an ever-changing cloud landscape.

Steps to Implement AWS Savings Plans

  1. Access your Moneta Portal:
    1. Log into your Moneta account at https://app.monetacloud.com.
    2. Navigate to the Rate Optimization > Savings Plan section.
  2. Analyze Savings Potential:
    1. Use the "Savings Plans" recommendation tool.
    2. Review your potential savings.
  3. Choose a Savings Plan Type:
    1. Compute Savings Plans: Most flexible, apply to EC2, Fargate, and Lambda.
    2. EC2 Instance Savings Plans: Specific to EC2 instances within a family in a region.
  4. Select Commitment Amount and Term:
    1. Choose between 1-year or 3-year terms.
    2. Determine the hourly commitment based on recommendations.
  5. Configure Payment Options:
    1. All Upfront: Pay the entire commitment upfront for maximum discount.
    2. Partial Upfront: Pay a portion upfront and the rest monthly.
    3. No Upfront: Pay the entire commitment monthly.
  6. Review and Purchase:
    1. Review your selections and projected savings.
    2. Click "Purchase" to activate your Savings Plan.
  7. Monitor and Optimize:
    1. Regularly review utilization in Cost Explorer.
    2. Consider additional purchases or modifications as usage grows.

Compelling Benefits for Finance Professionals

  1. Significant Cost Savings:
    1. Achieve discounts of up to 72% compared to On-Demand pricing.
    2. Customers typically see 20-30% reduction in overall compute costs.
  2. Improved Budget Predictability:
    1. Lock in lower rates for 1 or 3 years.
    2. Enhance forecast accuracy by 30-40% with known compute costs.
  3. Flexibility in Cloud Usage:
    1. Apply savings across multiple accounts, regions, and even services.
    2. Adapt to changing business needs without losing discount benefits.
  4. Optimized Cash Flow:
    1. Choose payment options that align with your cash flow preferences.
    2. Potentially reduce monthly cloud bills by 25-35%.
  5. Simplified Management:
    1. Automatically apply discounts without manual intervention.
    2. Reduce time spent on cost optimization by 50-60% compared to managing individual Reserved Instances.
  6. Enhanced ROI on Cloud Investments:
    1. Improve return on cloud investments by 20-30%.
    2. Align cloud costs more closely with actual business value.
  7. Strategic Resource Allocation:
    1. Reinvest savings into innovation and growth initiatives.
    2. Typically allows for 15-25% increase in budget for new projects.
  8. Competitive Advantage:
    1. Lower operational costs can translate to more competitive pricing or higher margins.
    2. Gain 10-15% cost advantage over competitors not optimizing cloud spend.
  9. Risk Mitigation:
    1. Reduce exposure to potential price increases.
    2. Minimize the financial impact of unexpected spikes in usage.
  10. Improved Stakeholder Confidence:
    1. Demonstrate proactive cost management to executives and shareholders.
    2. Enhance financial reporting with clear, predictable cloud cost structures.

Why Finance Leaders Should Act Now

  • Immediate Impact: Start realizing savings from the moment you purchase a Savings Plan.
  • Market Volatility Protection: Lock in low rates now to hedge against potential future price increases.
  • Competitive Edge: Optimize cloud costs faster than competitors, directly impacting bottom-line performance.
  • Resource Efficiency: Free up capital from operational expenses for strategic investments.
  • Financial Credibility: Showcase your ability to leverage innovative financial instruments in the cloud era.

Conclusion: Transform Your Cloud Cost Management

Implementing AWS Savings Plans is not just about reducing your cloud bill—it's about revolutionizing your approach to cloud financial management. This tool empowers you to:

  • Shift from reactive cost-cutting to proactive cost optimization.
  • Balance the need for cost savings with the demand for operational flexibility.
  • Create a foundation for sustainable, long-term cloud cost efficiency.

By leveraging Savings Plans, you're not just saving money; you're creating a strategic financial framework that aligns cloud spending with business objectives. It's time to move beyond ad-hoc cost management and embrace a solution that provides both significant savings and the flexibility to support your organization's evolving cloud needs.

Take action today. Analyze your usage patterns, purchase your first Savings Plan, and position yourself as a strategic driver of cloud financial efficiency in your organization. Your CFO will see you as a key player in optimizing cloud investments while maintaining the agility needed in today's fast-paced business environment.