The 4-Way Compute Tradeoff: Reserved vs Spot vs Savings Plan vs On-Demand After 3 Years of FinOps Data

Short summary

Mixed compute portfolio (50-70% Savings Plan, 15-25% Spot, 5-15% Reserved, 10-20% On-Demand) saves 15-35% more than single-model strategies. Optimal model selection depends on workload predictability, statefulness, and AZ-pinning. Portfolio approach requires operational complexity but provides flexibility and avoids commitment trap failures.

• •Mixed portfolio strategy saves 15-35% more than single-model approaches (all-On-Demand, all-Savings Plan, or all-Spot)
• •Workload shape (predictable/unpredictable, stateful/stateless, AZ-pinned or not) determines optimal compute model
• •Framework based on 3 years of audit data from ~40 mid-size AWS fleets; optimal distribution is 50-70% Savings Plan, 15-25% Spot, 5-15% Reserved, 10-20% On-Demand

Generated with AI, which can make mistakes.