Complying with AWS’s RI/SP Policy Update: Save More, Stress Less

Itay Tal Head of Cloud Services

5th December, 2024 4 Min read

• 

Shared Reserved Instances (RIs) and Savings Plans (SPs) have been a common workaround for reducing EC2 costs, but their value has always been limited. On average, these shared pools deliver only 25% savings on On-Demand costs—far below the 60% savings achievable with automated reservation tools. For IT and DevOps teams, the trade-offs include added complexity, reduced flexibility, and reliance on third-party control.

AWS’s new policy, taking effect on June 1, 2025, aims to change this reality forever. This article breaks down the impact of the policy change and offers actionable insights to help you maximize savings while staying compliant.

Cloud Block Storage Saving Estimate

What’s Changing?

The days of outsourcing RI/SP optimization to a third party are ending, forcing organizations to take full ownership of their cost optimization efforts. These are the two most significant changes your teams will face:

• Shared pools will no longer be allowed: MSPs will no longer be able to pool RIs and SPs to distribute unused capacity across customers. If you rely on MSPs for shared RI/SP savings, you’ll need to prepare for higher costs or find a compliant alternative. 
• Commitments will have to be managed directly: With discounts having to align with a single customer’s usage, organizations will be required to re-evaluate RI/SP strategies and manage commitments independently, balancing steady-state workloads with the right level of reservations. Failing to do so could result in higher On-Demand costs or underutilized commitments.

While there is a grace period—allowing shared RIs and SPs purchased before the policy update comes into effect to remain valid until they expire—this is only a temporary measure. Businesses authorized under AWS’s Solution Provider Program (SPP) or Distribution Program (DP) before May 2023 can continue sharing these commitments under previous terms, but no new shared pools will be permitted after the policy’s effective date.

Want to dive deeper into AWS’s recent policy changes and learn actionable strategies for compliance and cost-saving? Watch our webinar where we break it all down step by step.

What Are the Risks? 

The shift away from shared RI/SP pools introduces a series of challenges for organizations that have relied on these setups to reduce costs and simplify management. Knowing what’s at stake is the first step to ensuring your organization avoids the financial and operational pitfalls of non-compliance.

Financial Loss

Forfeiting RI/SP discounts could lead to higher On-Demand costs, especially for businesses with steady-state workloads previously optimized through shared pools. Without compliant strategies in place, the transition could escalate cloud expenses rapidly, cutting into budgets already strained by inefficient commitments.

Policy Breach

Continuing to use shared RI/SP pools will violate AWS’s updated terms. Non-compliance could disrupt your agreements with MSPs, making it difficult to access critical cost-saving services. For regulated industries, this also introduces risks of failing internal governance or external audit requirements.

Operational Strain and Complexity

Adapting to AWS’s new RI/SP rules will require significant effort from DevOps, IT, and FinOps teams, introducing both operational and strategic challenges. Teams will need to re-evaluate and realign their RI/SP strategies, which can drain focus from critical operations and delay other projects. Without automated tools, managing these changes manually—such as monitoring usage patterns, adjusting reservations, and mitigating risks of underutilization or overprovisioning—can further burden already overstretched teams. This added complexity risks inefficiencies and operational bottlenecks, making preparation essential for a smooth transition.

How Can You Comply?

The sooner you start adapting to AWS’s new rules, the smoother the transition will be—and the less chance of surprises when the new policy kicks in. Companies should:

• Audit RI/SP workflows to determine reliance on an MSP’s shared pool of discounts.
• Consider alternative automated solutions that maximize savings, maintain workload scaling flexibility, and ensure full compliance with AWS’s new terms.

Unlock Compliant Cloud Savings with GlobalDots

GlobalDots makes it easy to save money while staying compliant with AWS’s new RI/SP rules, delivering up to 60% savings compared to traditional MSP solutions. Our automated platform uses real-time telemetry to maximize RI/SP coverage and use while minimizing risks like over- or under-commitment.

With support for EC2, Lambda, Fargate, Redshift, and more, GlobalDots ensures your compute needs remain flexible—spin instances up or down while keeping usage aligned with your commitments. No manual work, no babysitting required.

Join innovators like SentinelOne and RedisLabs who have saved over $50M annually, while fully aligning with AWS guidelines.

Contact us for a free savings analysis today.