Savings estimation mode - AWS Compute Optimizer

Savings estimation mode

The savings estimation mode preference allows Compute Optimizer to analyze specific pricing discounts when generating the estimated cost savings of rightsizing recommendations. Compute Optimizer offers the savings estimation mode for the following pricing discounts per AWS resource:

  • Amazon EC2 and EC2 Auto Scaling group instances — Savings Plans and Reserved Instances pricing discounts.

  • AWS Lambda functions and Amazon ECS services — Saving Plans pricing discounts.

  • Amazon EBS volumes — other specific pricing discounts.

  • Aurora and RDS databases — Reserved Instances pricing discounts and other specific pricing discounts.

Note

The savings estimation mode preference is only available for accounts within AWS Organizations that enable Cost Optimization Hub in AWS Cost Explorer. For more information, see Cost Optimization Hub in the AWS Cost Management User Guide.

Important

When you use Billing Transfer as a bill source account, the AfterDiscounts functionality is disabled and you can't enable it. Bill source accounts must validate rightsizing recommendations against their Reserved Instance and Savings Plans inventory to consider any unused commitment before making optimization decisions.

Default behavior

Compute Optimizer applies a default savings estimation mode based on your account type and Cost Optimization Hub enrollment status.

When a management account opts in to Cost Optimization Hub, all member accounts in the organization automatically default to AfterDiscounts. This means Compute Optimizer uses your organization's pricing discounts, such as Savings Plans and Reserved Instances, when estimating potential cost savings. If the management account opts out of Cost Optimization Hub or disables savings estimation mode in Cost Optimization Hub, member accounts without an explicit preference revert to BeforeDiscounts.

The following table describes the default behavior when no explicit savings estimation mode preference is set.

Account type Default savings estimation mode
Management account or Delegated Administrator AfterDiscounts — Compute Optimizer uses pricing discounts in savings estimates.
Standalone account AfterDiscounts — Compute Optimizer uses pricing discounts in savings estimates.
Member account (management account opted in to Cost Optimization Hub) AfterDiscounts — Compute Optimizer uses pricing discounts in savings estimates.
Member account (management account not opted in to Cost Optimization Hub) BeforeDiscounts — Compute Optimizer uses On-Demand pricing only.
Note

If you have Linked account discounts disabled in Cost Explorer, Compute Optimizer will be set to BeforeDiscounts.

Overriding default preferences

You can override the default behavior by explicitly setting a savings estimation mode preference using the PutRecommendationPreferences API or the Compute Optimizer console. An explicit preference always takes precedence over the default behavior described above.

Only the account manager or delegated administrator of your organization can activate member accounts in specific AWS Regions to receive recommendations with pricing discounts. For the account manager and the delegated administrator, the savings estimation mode preference is activated by default.

If the savings estimation mode preference isn't activated and the account doesn't qualify for a default of AfterDiscounts, Compute Optimizer uses the default On-Demand pricing information.

Next steps

For instructions on how to activate or deactivate the savings estimation mode preference for member accounts, see Activating savings estimation mode.