AWS Reserved Instances offer savings but carry risk of costly lock-in

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AWS reserved instances can reduce compute costs by 40-72% compared to on-demand pricing when used correctly. However, they require accurate predictions of future workload requirements like instance type, size, region, and duration. If predictions are wrong, organizations can become locked into paying for unused or mismatched capacity for one to three years. Experts recommend completing rightsizing work and analyzing usage patterns before committing, and suggest Compute Savings Plans as a more flexible alternative for many teams.

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