EC2 RI Buying Recommendations Report

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The foundation of cloud resource consumption is the on-demand model, where resources incur cost only when used, and priced by the hour in case of virtual instances e.g. EC2 services. No upfront commitments –pay only for what you use, when you use it.

AWS offers an alternative unique pricing model for its EC2 services – the Reserved Instance (RI). This pricing model guarantees users the capacity which they reserved, whenever they need it (for the duration of the RI), and offers significant price discounts over on-demand pricing. In return, users make an upfront commitment for the usage of a virtual instance, bound to a specific family, size, availability zone (AZ) and operating system (OS), over the period of commitment (1 or 3 years). This allows AWS to efficiently plan future capacity, as well as to gain customer commitment to using its services. Three payment options for RIs, which are all-upfront - bulk sum at day 0, offering the highest discount; no upfront - in which the cost of RI is paid in monthly installments over the duration of the RI, offering the lowest discount; and partial upfront, in which ¼ - ½ of the price is paid up front, and the rest in monthly installments, with a discount rate which is lower, but close, to the all-upfront rate. 

Cloudyn looks at the uptime of each machine for the last 30 days. If it would be more cost-effective to run the machine with an RI at the current uptime level, we recommend buying RIs.

EC2 RI Buying Recommendations Overview

This report shows the justification for our recommendations to save the most money over the year. These recommendations are to replace On-Demand instances with Reserved Instances (RI). RIs can also be purchased from this report.

The following example shows the potential savings from switching from On-Demand Instances to Reserved Instances is $5,413. The Annual On-Demand Costs are $13,981 and the Annual Reservation Costs would be $8,568. 

This report has multiple tabs with valuable information. Each tab can be opened as a full report for the results of the selected criteria.

Groups and Filters

Field Description
Account Name The account or subscription name.
Region Region the resource is hosted.
Availability Zone

AWS isolated locations within a region.

Instance Type

Select the instance type.


The operating system.

Offering Type Show all, all upfront, no upfront, partial upfront
Tenancy Whether a machine is running as a dedicated machine.

Extended Filters:

Policy - Consolidated or standalone.
Term - 1 or 3 year

Offering Type - all upfront, no upfront, partial upfront


Click + to view additional information about each instance

  • Purchase - use this button to purchase the reserved instance. 
    • Account Name, is the account name for the current reserved instance
    • Region is the region of the current reserved instance
    • Instance Type- the instance type of the current reserved instance
    • Convertible- Select convertible if you want to make this a convertible RI
      (Convertible RIs provide the option at any time to change the instance family, OS, or tenancy associated with the RI).
    • Availability Zone - select the availability zone
    • Tenancy- select the tenancy
    • Platform - select the platform
    • Payment Option - select the payment option
    • Term - select the term
    • Quantity - select the number of RIs


  • Details - This section provides a detailed explanation of the deployment recommendation including: Account Name, Region, VPC, Instance Type, Offering Type, Availability Zone, Tenancy, Quantity

    Justification - the on demand cost vs. the cost using reserved instances
    Total annual savings in currency and percentage

    Impact - Total annual savings in currency and percentage 
  • EC2 RI Purchase Impact - This section provides a simulation of the difference between on-demand vs reserved instances. Click Zoom in, to see the full EC2 RI Purchase Impact report with the filters already defined to your recommendation.  This report allows you to see the purchase impact of all potential RI purchases.  You can adjust the expected average uptime and see the potential saving by purchasing EC2 Reserved Instances.
  • Saving Analysis -This section provides the potential savings achieved and the month the savings are actualized when following Cloudyn recommendations. The actual savings and the percent saved are highlighted in red.
  • EC2 RI Type Comparison - This section provides emphasizes the ROI highlight's of Cloudyn's recommended deployment, includingnnn all relevant options. The results in this report assume that the machine is running at 100% uptime. Click Zoom In to open the detailed report.
  • Instances Over Time - This section displays a breakdown of all instances associated with the recommendation, OnDemand, Reserved Instances and Spot. Click Zoom In to open the detailed report.
  • Breakeven Points - This section displays a table of all of the possible recommended deployments and the ROI and the month in which ROI occurs. Click Zoom In to open the detailed report.