How does CloudHealth calculate EC2 Savings from Savings Plans?

Products

• CloudHealth

Issue/Introduction

These two values are important in understanding how EC2 Savings is calculated: 

• Savings. “EC2 Savings from RIs” and “EC2 Savings from SPs” - see how much you saved on EC2 usage with RIs and/or SPs, including the share from this usage of upfront fees, amortized.* 

• Discount Rate. “Discount Rate” from RIs and SPs - see what percentage of your usage is covered by discounts, and the effective blended discount rate.

These measures currently live in the CloudHealth AWS Savings Report. You can also see them in the Savings Plan Dashboard in a summary form - clicking on the summary rack will bring you into the appropriate Savings Report view to dig deeper. Users can also add widgets showing specific configurations of the Coverage, Savings, or Discount Rate. These KPIs also tie back into how commitments are measured and proposed in the Savings Plans Recommendations toolset. 

Note: 

• The cost of unused RIs or unused SPs are not taken into account in these new KPIs because, by definition, those costs are not associated with usage, and how customers distribute, share, and chargeback unused costs will vary.

• *The existing “EC2 Savings” measure (paired with “EC2 Opportunities”) represent a “charges” view (what was charged in this time period) and therefore do not take into account the amortization of upfront fees. At this time, these measures are still available and will be renamed in the future to reflect the difference.