# COST07-BP01 Perform pricing model analysis
COST07-BP01 Perform pricing model analysis

 Analyze each component of the workload. Determine if the component and resources will be running for extended periods (for commitment discounts), or dynamic and short-running (for Spot or On-Demand Instances). Perform an analysis on the workload using the Recommendations feature in AWS Cost Explorer. 

 **Level of risk exposed if this best practice is not established:** High 

## Implementation guidance
Implementation guidance

AWS has multiple [pricing models](https://aws.amazon.com/pricing/) that allow you to pay for your resources in the most cost-effective way that suits your organization’s needs.

**Implementation steps**
+ ** Perform a commitment discount analysis:** Using Cost Explorer in your account, review the Savings Plans and Reserved Instance recommendations. To verify that you implement the correct recommendations with the required discounts and risk, follow the [Well-Architected labs](https://wellarchitectedlabs.com/cost/costeffectiveresources/). 
+  **Analyze workload elasticity: **Using the hourly granularity in Cost Explorer, or a custom dashboard. Analyze the workload elasticity. Look for regular changes in the number of instances that are running. Short duration instances are candidates for Spot Instances or Spot Fleet. 
  +  [Well-Architected Lab: Cost Explorer](https://wellarchitectedlabs.com/Cost/Cost_Fundamentals/100_5_Cost_Visualization/Lab_Guide.html#Elasticity) 
  +  [Well-Architected Lab: Cost Visualization](https://wellarchitectedlabs.com/Cost/Cost_Fundamentals/200_5_Cost_Visualization/README.html) 

## Resources
Resources

 **Related documents:** 
+  [Accessing Reserved Instance recommendations](https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/ri-recommendations.html) 
+  [Instance purchasing options](https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/instance-purchasing-options.html) 

 **Related videos:** 
+  [Save up to 90% and run production workloads on Spot](https://www.youtube.com/watch?v=BlNPZQh2wXs) 

 **Related examples:** 
+  [Well-Architected Lab: Cost Explorer](https://wellarchitectedlabs.com/Cost/Cost_Fundamentals/100_5_Cost_Visualization/Lab_Guide.html#Elasticity) 
+  [Well-Architected Lab: Cost Visualization](https://wellarchitectedlabs.com/Cost/Cost_Fundamentals/200_5_Cost_Visualization/README.html) 
+  [Well-Architected Lab: Pricing Models](https://wellarchitectedlabs.com/Cost/CostEffectiveResources.html)