Understanding the utilization and coverage of a savings plan is crucial for assessing its effectiveness in reducing resource usage costs. This topic explains how to monitor the utilization and coverage of a savings plan and optimize it based on current performance.
View Savings Plan Utilization
Utilization Definition
Savings plan utilization measures the percentage of the plan's value that offsets your costs relative to its total value. Higher utilization signifies more efficient use of the savings plan.
Savings plan utilization = Amount offset by the savings plan / Total savings plan amount
Amount offset by the savings plan: the amount that the savings plan offsets for pay-as-you-go resources.
Total savings plan amount: the total cost of the savings plan within the selected time frame, calculated as: Total savings plan amount = Hourly commitment × Subscription duration.
Procedure
Usage Overview
Log on to Billing and Cost.
In the left-side navigation pane, select Account > Savings Plan .
On the Savings Plan page, click the Usage Overview tab.
Enter the Budget Name for the budget query, select the Time Granularity and Time Range based on the time dimension, select Add Filter Conditions, and click Search.
Case Description
Mr. Zhang purchased an on-demand ECS instance in a specific region and then acquired a 3-year all upfront general-purpose savings plan on recommendation. Between 2022-12-01 00:00:00 / 2023-02-06 00:00:00, Mr. Zhang's total savings plan amount was USD 160.80, and the offset amount was USD 127.41.
During this period, Mr. Zhang's savings plan utilization = Amount offset / Total savings plan amount = 127.41/160.80 = 79.24%. This shows that Mr. Zhang effectively used the savings plan to reduce costs, but there is room for improvement to achieve 100% utilization for maximum savings.
View Savings Plan Coverage
Coverage Overview
Savings plan coverage assesses resource usage, with higher coverage indicating more effective cost reduction.
Savings plan coverage = Amount offset by the savings plan / Total eligible resource spend
Amount offset by the savings plan: the amount that the savings plan offsets for pay-as-you-go resources.
Total eligible resource spend: the combined total of savings plan amounts and pay-as-you-go charges for resource usage beyond the plan's commitments.
Billing And Cost coverage includes all products eligible for savings plans. To view coverage for a specific product, filter by the product details.
Procedure
Coverage Overview
Log on to Billing and Cost.
In the left-side navigation pane, select .
On the Savings Plan page, click the Coverage Overview tab.
Enter the Budget Name for the budget query, select the Time Granularity and Time Range based on the time dimension, select Add Filter Conditions, and click Search.
Case Description
Mr. Zhang purchased an ecs.hfr7.xlarge on-demand instance in a specific region and then acquired a 3-year all upfront general-purpose savings plan on recommendation. During the period from 2022-01-05 00:00:00 to 2023-01-12 00:00:00, Mr. Zhang's offset amount was USD 1.23, and the total spend was USD 1.23. Thus, Mr. Zhang's savings plan coverage during this period was Amount offset / Total spend = 1.23/1.23 = 100%.
If your pay-as-you-go resources are Auto Scaling, optimal coverage does not necessarily mean reaching 100%. You can use the Savings Plan Purchase Recommendation Tool to determine the ideal coverage level.
Optimize Savings Plan Based on Utilization and Coverage
High Utilization, High Coverage: This indicates that your savings plan purchase is well-aligned with your needs, maximizing cost savings without waste.
High Utilization, Low Coverage: This suggests there is potential to increase savings by expanding the savings plan's commitment.
Low Utilization, Low Coverage: This scenario implies significant potential savings are being missed. Adjusting usage to align with the savings plan can reduce losses.
Low Utilization, High Coverage: This suggests the savings plan's commitment may be too high. Consider reducing the commitment or exploring other savings plan options to match your business needs.