COST07-BP04 Implement pricing models for all components of this workload
Permanently running resources should utilize reserved capacity such as Savings Plans or Reserved Instances. Short-term capacity is configured to use Spot Instances, or Spot Fleet. On-Demand Instances are only used for short-term workloads that cannot be interrupted and do not run long enough for reserved capacity, between 25% to 75% of the period, depending on the resource type.
Level of risk exposed if this best practice is not established: Low
Implementation guidance
Consider the requirements of the workload components and understand the potential pricing models. Define the availability requirement of the component. Determine if there are multiple independent resources that perform the function in the workload, and what the workload requirements are over time. Compare the cost of the resources using the default On-Demand pricing model and other applicable models. Factor in any potential changes in resources or workload components.
Implementation steps
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Implement pricing models: Using your analysis results, purchase Savings Plans (SPs), Reserved Instances (RIs) or implement Spot Instances. If it is your first RI purchase then choose the top 5 or 10 recommendations in the list, then monitor and analyze the results over the next month or two. Purchase small numbers of commitment discounts regular cycles, for example every two weeks or monthly. Implement Spot Instances for workloads that can be interrupted or are stateless.
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Workload review cycle: Implement a review cycle for the workload that specifically analyzes pricing model coverage. Once the workload has the required coverage, purchase additional commitment discounts every two to four weeks, or as your organization usage changes.
Resources
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