There are three actual ways to reduce AWS resources like using savings plans, taking on-demand/reserved servers, or taking advantage of AWS spots. However, of course, all of these options have their pros and cons.
The logical first steps in reducing costs on AWS are downgrading the system, compressing servers, and deleting unused resources in the project. As well, you should upgrade instances to the latest version and properly size EC2 models.
If you are just beginning to use AWS resources, we recommend using a savings plan. The plan offers the lowest prices for computing resources and a flexible model to save around 70% on computing AWS powers. With a savings plan, you are given a fixed hourly rate payment, but can change the services, powers, and capacities involved; you can mix, modify, delete, and edit them. You will also sign a contract for a minimum of one year, so you cannot refuse the service until the contract ends. In addition, this model provides the lowest price on the instance in Amazon EC2 without considering size, OS, or region.
The second option, on-demand/ reserved server, means you reserve the server for business needs for at least a year. This option is less flexible, as you book a server with specific requirements like 4 processors, 10 GB RAM, etc. Once you are signed up for a reserved server, you cannot change anything about the configurations. Though, Amazon gives you a considerable discount. Keep in mind that these days everything can change promptly, and your server requirements may very well change too.
The third option is using AWS spots, or unused Amazon powers. With this option, Amazon provides a 30-40%, even 60%, discount to utilize their unused powers. This option is suitable for web or mobile-based apps compliant with many tech requirements and that are designed to work with the spots. However, there is a critical point that once someone buys an on-demand server, you lose your powers and are notified that within 2 minutes you will lose the spot.
You may also address our team for cloud computing consulting for the best optimization of your AWS resources and cost drivers of computing, storage, and outbound data transfer. In addition, it is worth mentioning that once you become a client of the IT-Magic team, you may receive a good discount of around 30% on AWS hosting technology. During our cloud services consulting, we list the costs for each AWS service and server in greater detail.