Optimizing Your AWS Reserved Instance Management

Optimizing Your AWS Reserved Instance Management

AWS Reserved Instance (RI) management is a key factor in increasing your cloud cost savings. Optimizing your AWS Reserved Instance management can help you save money and maximize your cloud efficiency. This blog will provide you with a detailed guide to optimizing your AWS Reserved Instance management.

What is an AWS Reserved Instance (RI)?

A Reserved Instance (RI) is an EC2 offering that provides you with a significant discount on EC2 usage when you commit to a one-year or three-year term. When you purchase an RI, you choose between 3 payment schemes – No upfront, Partial upfront, or Full upfront. In turn, AWS provides you with up to 72% discount on the instance you purchase. A longer-term commitment with full upfront payment yields the greatest discounts.

What Is Reserved Instance Optimization?

Reserved Instance Optimization helps you to determine the most cost-effective way to purchase RIs and to match them to your changing computing needs. RIs are applied based on instance family, region, tenancy, and platform (OS). The goal of optimization is to match compute resources with RIs, in which case you achieve full coverage of your compute resources with RIs and, simultaneously, full utilization of RIs. Achieving this typically involves taking a range of decisions involving repurchasing, converting, exchanging, and modifying RIs. As you may imagine, this can be a big challenge if your computing resources change highly dynamically. 

What Steps Can You Take To Get A Better Grasp On Your Reserved Instances Usage?

In order to better understand your Reserved Instances usage, there are a few steps you can take. 

  1. First, you should survey your RIs and understand their terms better. Are they convertible, flexible payment options, or one-time payments? Are the instances region-specific, or can they be transferred? Knowing the details of your Reserved Instances will help you better understand their usage.
  1. Second, you should map your RIs to underlying compute resources. The rules for applying to RIs are somewhat convoluted, and it may be worth revisiting AWS documentation for clarity (that is, if you are not using an automation tool like nOps). It is relatively easy to cover stable workloads with RIs. Workloads that change frequently (e.g., you have periodic, high-volume batch compute, which creates and then terminates many instances) may be harder to pinpoint and cover.
  1. Third, you should review your billing information regularly. Make sure that you are not overpaying for Reserved Instances that are not being used. If you find that you are overpaying, you should look into transferring your Reserved Instances to other families or regions where you have uncovered resources running. 

You should, in any case, consider using cloud management tools to understand your Reserved Instances usage in a better way. These tools can provide you with real-time data on your usage, so you can make better decisions about how to use your Reserved Instances.

Optimizing Your AWS Reserved Instance Management

Optimizing your AWS Reserved Instance management can help you save money and maximize your cloud efficiency. Here are some tips for optimizing your AWS Reserved Instance management:

1. Understand Your Cloud Needs:

Before you purchase any RIs, it is important to understand your cloud needs. Evaluate your current and future cloud usage and determine which AWS services are most important to your business. This will help you determine which RIs are most beneficial for your business.

2. Analyze Your Current RIs:

Analyzing your current RIs can help you identify areas for optimization. Evaluate your current RIs to determine which are no longer necessary or are underutilized.

3. Leverage the AWS Marketplace:

The AWS Marketplace is a great resource for finding RIs at discounted prices. Additionally, you can use the AWS Marketplace to purchase RIs for specific AWS services, such as Amazon EC2, Amazon RDS, or Amazon Redshift.

4. Utilize AWS Cost Explorer:

AWS Cost Explorer is a powerful tool that can help you analyze your cloud costs. Utilize AWS Cost Explorer to identify areas of optimization, such as underutilized RIs or unused AWS services.

5. Automate RI Management:

Automation can help you optimize your RI management and save time. Automating RI management can help you identify underutilized RIs and manage the RI lifecycle more efficiently.

6. Monitor RI Utilization:

Monitoring RI utilization is essential to ensure that you are getting the most out of your RIs. Utilize AWS Cost Explorer or other cloud monitoring tools to monitor RI utilization.


Optimizing your AWS Reserved Instance management can help you save money and maximize your cloud efficiency. These tips will help you optimize your AWS Reserved Instance management and get the most out of your cloud resources. By understanding your cloud needs, analyzing your current RIs, leveraging the AWS Marketplace, utilizing AWS Cost Explorer, automating RI management, and monitoring RI utilization, you can optimize your AWS Reserved Instance management and save money in the long run.

How can nOps help with Reserve Instance Management?

You can employ rightsize RIs, auto-scaling, and spot instances to adapt your computing requirements. Extensive planning and forecasting are needed for this. Plus, anticipating future utilization without any proper metrics stands near impossible. Thus, the nOps ShareSave model can be a game-saver if you want your metrics sorted. Also, even if the chosen pricing model is not helping you save appropriately, with our ShareSave solution, you can consolidate cloud accounts into a single pricing model and offer ongoing visibility to change requests. This helps you easily manage cloud costs and save more money.