What is AWS Savings Plans?

AWS Savings Plans is a flexible pricing model offered by Amazon Web Services that provides significant discounts on AWS compute usage. Here's how it works:

1. Understand the Service: AWS Savings Plans offers a way to save up to 72% on your AWS compute usage by committing to a consistent amount of compute usage (measured in $/hour) for a 1 or 3 year term.

2. Choose a Savings Plan: AWS offers two types of Savings Plans - Compute Savings Plans, which provide the most flexibility and can be used across any AWS compute service and region, and EC2 Instance Savings Plans, which provide the deepest discounts and are ideal for steady-state workloads.

3. Commit to a Usage: You decide how much to commit to the hourly compute usage. The more you commit, the more you save.

4. Start Saving: Once you sign up for a Savings Plan, your compute usage is charged at the discounted Savings Plans rates. Any usage beyond your commitment will be charged at regular On Demand rates.

5. Monitor and Manage: You can monitor and manage your Savings Plans through the AWS Cost Explorer.

In summary, AWS Savings Plans is a pricing model that offers significant savings on AWS compute usage in exchange for a commitment to a consistent amount of usage over a 1 or 3 year term.