This option uses different types of savings plans and reserved nodes to minimize the company’s overall monthly costs for running its application on EC2 instances, Lambda functions, and MemoryDB cache nodes. Savings plans are flexible pricing models that offer significant savings on AWS usage (up to 72%) in exchange for a commitment of a consistent amount of usage (measured in $/hour) for a one-year or three-year term. There are two types of savings plans: Compute Savings Plans and EC2 Instance Savings Plans. Compute Savings Plans apply to any compute usage across EC2 instances, Fargate containers, Lambda functions, SageMaker notebooks, and ECS tasks. EC2 Instance Savings Plans apply to a specific instance family within a region and provide more savings than Compute Savings Plans (up to 66% versus up to 54%). Reserved nodes are similar to savings plans but apply only to MemoryDB cache nodes. They offer up to 55% savings compared to on-demand pricing.