With lots of organisations thinking about cloud choice or going multi-cloud, this article provides a side-by-side comparison of pricing discounts offered by different cloud vendors.

This isn’t a comparison of pricing models – we’ll cover that in a separate blog – but the discounts available on your cloud consumption.

Commitments/Reservations

Most public cloud providers offer some form of discount pricing in exchange for committing to a plan for 1 to 3 years.

For this post we’ll concentrate on the top 3 cloud providers – AWS, Azure & Google Cloud Platform (GCP). Currently, Oracle doesn’t publish their equivalent of Reservations.

We’ll update this blog as data changes and becomes available, so bookmark this page and check back.

Comparison across vendors

Example Discounts Available

Discounts vary based on a number of factors such as location, machine type, OS, type of commitment, etc. Here are some examples of the levels of discounts that are available for Compute:

AWS

  • Reservations – Offer up to 72% discount compared to on-demand rates
  • Compute Savings Plan – Offers up to 66% discounts compared to on-demand rates
  • EC2 Instance Savings Plan – Offer up to 72% discount compared to on-demand rates

Note: AWS Reservations for EC2 have largely been superseded by Savings Plans, they are still useful though for capacity reservation and can be resold on an AWS Marketplace.

Azure

  • Reservations – Offer up to 72% discount compared to Pay-as-you-go rates. Up to 80% when combined with Azure Hybrid Benefits

GCP

  • CUDs – Offers up to 57% discount for most machine types & up to 70% discount for memory optimised machine types compared to on-demand rates.

What to purchase

This would fill an article in its own right but three tips for purchasing:

  • Review your current spend level and decide whether it will reduce, remain the same, or increase over the next 12 months.
  • Purchase coverage for a % of your current spend – Start off small and increase your coverage as you gain confidence. 90-100% for increasing spend or 80-90% for static spend. For reducing spend you need to establish approximately what it’s likely to reduce to and purchase 80-90% of that.
  • Use tools like CloudHealth or platform native ones to assist with making the right purchases. But to be certain you get it right, use a service like FutureProof’s CloudControl that combines human insight and business context with tools.

Making a purchase can sometimes feel like a leap of faith, remember though that it’s better to have some coverage than no coverage at all.

And every month that passes by without reservations in place means you’re overpaying for your consumption.