‫Okay, so now let's talk about a new way
‫of saving on your cost on AWS, which is called Savings Plan.
‫So Savings Plan are a much simpler way
‫to look at your infrastructure on AWS.
‫Instead of reserving instances, you just commit
‫to spending a certain dollar amount per hour
‫for the next one or three years.
‫So it's easier than the rest because you just think
‫in terms of dollars and you don't think
‫in terms of specific resource, and types, and so on.
‫So let me show you the two types
‫of Savings Plans you have on AWS.
‫The first one is an EC2 Savings Plan,
‫and this is going to give you up to 72% discount
‫compared to On-Demand prices for EC2.
‫And you're going to commit to the usage
‫of the individual instance families in a region.
‫For example, you say, "Hey, I'm willing to spend
‫$10 per hour for the next three years
‫on the C5 type of instances."
‫But regardless of the AZ they're launched in,
‫regardless of the size, so you can choose a C5.xl
‫or a C5.4xl, regardless of the operating system,
‫so Linux or Windows, and regardless of the tenancy
‫if you want to choose shared or dedicated host.
‫You can choose, just like reserve instances,
‫to pay everything upfront, partial upfront, or no upfront.
‫And, obviously, if you pay everything upfront,
‫you're going to get a bigger discounts.
‫And the other types of Savings Plan is even more flexible.
‫It's called the Compute Savings Plan.
‫And this one is going to give you up to 66% discounts
‫compared to On-Demand.
‫And this is regardless of the family, the region,
‫the size, the OS, the tenancy, and the compute option.
‫And what do I mean by compute option?
‫I mean that it's applicable to EC2 instances,
‫but also Fargate containers and Lambda functions.
‫So the Compute Savings Plan is really the most flexible
‫where you don't really think much
‫about what this applies to.
‫You just commit a certain dollar amount per hour,
‫and you get discounts based on that.
‫And the last option you have for Savings Plan
‫is the Machine Learning Savings Plan
‫for services such as SageMaker.
‫And how to set up a Savings Plan.
‫Well, you go into the AWS Cost Explorer console,
‫and it will suggest to you the type of right Savings Plan
‫that will work for your current infrastructure.
‫And you can estimate the pricing
‫of Savings Plan at this URL.
‫And so if we go to the Savings Plan website,
‫we have two kinds of Savings Plans,
‫this Compute and the Machine Learning Savings Plan.
‫So for the Compute Savings Plan, we have different ones.
‫So we have Compute or EC2 Instance Savings Plan.
‫And here on this UI, you can basically navigate it
‫so you have for EC2, for Fargate,
‫for Lambda, or for EC2 Instances.
‫And then you can modify the region.
‫So the region, the relocation type you want,
‫the region you want, the term length, so one or three years,
‫payment upfront or not, or partial, and so on.
‫And then it gives you a list of available instances.
‫For example, if we take an a1.large,
‫then using a Savings Plan,
‫we can expect 31% discounts over On-Demand.
‫So this UI is great to estimate
‫all your Compute Savings Plan.
‫And then for Machine Learning, we have something similar.
‫So they will be added over time,
‫but I won't probably add it this lecture
‫because it's not needed.
‫So, right now, we have the Amazon SageMaker Savings Plan,
‫which is enough for us to know from an exam perspective.
‫And we have the region again, the type, and so on.
‫And then besides here, we can take a look
‫at the Notebook instances for SageMaker, for example.
‫And if we do decide to run
‫ml.t3.large-Notebook for a long time,
‫then we can expect savings of 28% over On-Demand, okay.
‫So if you go and type savings plan in your services search,
‫you go under Cost Explorer,
‫there is the top feature, which is Savings Plan,
‫and it takes you to this URL.
‫And you can have a look at the fact you can purchase
‫Compute Savings Plan, which is for Fargate,
‫Lambda, and EC2 instances.
‫You have EC2 Instances Savings Plan,
‫just only for EC2 instances.
‫And then SageMaker Savings Plan,
‫which is the Machine Learning Savings Plan.
‫So if you decide to purchase a Savings Plan,
‫you can choose whatever Savings Plan type we want.
‫The term commitment, for example, one to three year.
‫The purchase commitment, so, for example,
‫I decide to have an hourly cost of $500.
‫And the payment options, so Partial Upfront,
‫and this would be a lot of money to front,
‫so $6 million to say upfront.
‫Anyways, you would see the Savings Plan upfront cost,
‫the monthly payment, and the total cost.
‫And then if you're ready, you just add it to cart
‫and you would have a Savings Plan for your infrastructure.
‫So that's it for this lecture.
‫I hope you liked it,
‫and I will see you in the next lecture.