Amazon Web Services announced updates to its pricing structure for reserved instances this week, with changes taking effect in Q2 2025.
The new pricing applies to compute-optimized instances in the US East and US West regions. Organizations with existing reservations will see their current rates honored until renewal.
What Changed
Three-year reserved instance commitments now offer 42% savings compared to on-demand pricing, up from 40% previously. One-year commitments remain at 31% savings.
Convertible reserved instances see smaller adjustments, with three-year terms offering 37% savings.
Who Benefits
Companies running steady-state workloads benefit most from these changes. Startups and organizations with variable compute needs may find Savings Plans more flexible.
AWS recommends reviewing your Cost Explorer data before committing to reserved capacity. The Rightsizing Recommendations tool can help identify optimal instance types.
Timeline
New pricing takes effect April 1, 2025. Existing reservations continue unchanged until expiration.
Organizations should review upcoming renewals and consider whether to convert to Savings Plans or continue with reserved instances based on their workload patterns.
