Understanding EC2 Savings Plans | Scribe

Understanding EC2 Savings Plans

  • Hafeez Baig |
  • 9 steps |
  • 54 seconds
  • Amazon Web ServicesAmazon Web Services
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Refer to the following guide to learn how to use IAM in the cloud\ <https://scribehow.com/shared/Creating_an_IAM_User_and_User_Group_in_AWS_Management_Console__hWNiiXlcRJKFqYZZEJD-cg>
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Sign in to **AWS Management Console** as an **IAM User** **Pre-requisite** - Ensure you have selected the AWS region closest to your location\ For this guide, we will be using us-east-2 (Ohio) as a preferred choice
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Type **EC2** in the search bar and click on **EC2** to view the EC2 Dashboard
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**What is Amazon EC2?** EC2 stands for Elastic Compute Cloud. It's a web service provided by Amazon Web Services (AWS) that offers resizable compute capacity in the cloud. Essentially, it allows users to rent virtual computers on which they can run their own applications. EC2 instances can be easily scaled up or down to meet changing computing demands, making it a flexible and cost-effective solution for hosting applications and services in the cloud.
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On the EC2 dashboard, click on the **Savings Plans** from the left bar
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**What is the Savings Plan in AWS?** A Savings Plan is a pricing model that provides significant discounts on AWS usage in exchange for committing to a consistent amount of usage, measured in dollars per hour, for a 1 or 3-year term. This allows users to save money on their AWS bills by making a commitment to a certain level of usage over time.
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**Savings Plans** wizard will open, click on the **Purchase Savings Plan** link
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**Overview** wizard will open, on the right side click on the **Purchase a Savings Plan**
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**Purchase a Savings Plan** wizard will open, select the option **Compute Savings Plans**
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Scroll to the **Terms** dropdown section and select the Term
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Scroll to the **Purchase commitment** section, give the **Hourly commitment** and click on the **Payment option** dropdown and select the option **All upfront**
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Scroll to the **Purchase summary** section, here you can view the summary of the EC2 Savings Plans and click on the **Add to cart** button to continue purchasing the Savings Plan
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Congratulations on completing the lab! You successfully explored EC2 Savings Plans Great job!