On-demand EC2 is AWS's highest-margin revenue stream — and you're almost certainly overpaying. This paper delivers the commitment optimisation methodology, decision framework, and purchasing strategy that eliminates 30–72% of compute waste.
The three layers of EC2 spend — stable base, variable, and ephemeral — and why 35–55% of enterprise compute runs on-demand without commercial justification.
Standard RIs, Convertible RIs, and Compute Savings Plans compared — discount depth, flexibility, Marketplace resale, and which instrument fits which workload.
A 4-gate decision framework for selecting the right instrument, term length, and payment option for every workload — with Graviton migration considerations.
From baseline utilisation analysis and existing commitment audit through demand forecasting, stack design, financial modelling, and continuous purchasing implementation.
Over-committing to single families, annual purchasing, all-Savings-Plans portfolios, ignoring the Marketplace, committing before right-sizing, all-3-year terms, and siloed purchasing.
How to build and maintain the optimal portfolio — monthly purchasing cadence, active portfolio management, RI Marketplace tactics, and EDP integration.
"The optimal commitment portfolio is not 100% Savings Plans or 100% RIs. It's a layered strategy — Savings Plans for flexibility, Standard RIs for maximum savings, and on-demand for everything else."Redress Compliance — Cloud & FinOps Practice