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Using Reserved Instances can be a much more economical way of purchasing your AWS usage. An RI is like a coupon, it guarantees you a discount from the On-Demand price of an EC2 instance. If you properly assess your usage and purchase wisely, you can reduce your compute cost by over 70%! However, if you buy without first doing the analysis, you will be left paying for resources you do not need – running up your bill and making your boss pretty unhappy.
That is the key: understanding your usage. You need to ensure that you are right sized. Although you can split and combine RI within families (and resell unused ones), it is better to take the time initially to properly size your resources. Think measure twice and cut once.
Once you are properly sized, you need to identify which instances would benefit from RI purchases. These do not need to be specific instances; they should be groups with identical characteristics (type, AZ, tenancy, and OS).
Now you are ready to purchase your RI, but make sure you avoid older generation instances. Review the list carefully to make sure you are buying the RI with highest ROI (you have to make your finance team happy :)). And review the list one more time to make sure that the instances which are driving the RI are not part of applications that are about to be decommissioned.
We know, this sounds like a lot of work! It is – and that is where CloudCheckr comes in.
To begin with, our software gives a thorough reading of your AWS presence. We first analyze your current EC2 utilization. We provide analysis for proper sizing. We then analyze your usage. We also identify your existing RI (and let you know if you are not fully using them). Next, we use that data to forecast your future use and make purchase recommendations.
Pro-tip: make sure all your AWS accounts are input into CloudCheckr so we can make accurate forecasts. Don’t worry, our app reads your Consolidated Bill and will warn you if some child accounts aren’t input.
On the recommendations screen, the app gives you a detailed breakdown of the costs and ROI for your overall environment. It also provides the details for individual RI recommendation. You will get all of the information you need about upfront cost, time to breakeven, and ROI in one place on one screen so that you can be confident in your purchase decision.
We even list out the EC2 instances for which you should not purchase RI, giving you the reasons why not. This way you will have all the answers when your boss and the finance team ask!
Clarity, sound reasoning, and drill-down details on demand. CloudCheckr shows its work. We don’t just ask you to trust us on this, we do the job and provide the details to earn your trust.
For a free two-week trial of CloudCheckr click here.