Based on the official AWS re:Invent 2025 announcement

What Are AWS Database Savings Plans?

At AWS re:Invent 2025, Amazon announced Database Savings Plans - a flexible pricing model that offers significant discounts on database usage in exchange for a commitment to a consistent amount of compute usage (measured in dollars per hour) for a 1 or 3-year term.

Unlike Reserved Instances (RIs), which require you to commit to specific instance types and regions, Database Savings Plans provide flexibility to change instance families, sizes, regions, and even database engines while maintaining your discount.

Which Services Are Covered?

Database Savings Plans apply to compute usage across these AWS database services:

  • Amazon RDS - MySQL, PostgreSQL, MariaDB, Oracle, SQL Server
  • Amazon Aurora - MySQL and PostgreSQL compatible editions
  • Amazon Redshift - Data warehouse workloads
  • Amazon ElastiCache - Redis and Memcached
  • Amazon MemoryDB for Redis - Redis-compatible in-memory database

How Much Can You Save?

Database Savings Plans offer substantial discounts compared to On-Demand pricing:

  • 1-Year Term: Up to 30% savings
  • 3-Year Term: Up to 40% savings

The exact discount varies by database engine, instance type, and region, but the savings are comparable to or better than traditional Reserved Instances.

Key Benefits Over Reserved Instances

1. Flexibility Across Instance Types

With RIs, you're locked into a specific instance family. Database Savings Plans let you switch between instance types freely. For example, you can move from db.r5.xlarge to db.r6g.2xlarge without losing your discount.

2. Automatic Application Across Regions

Your commitment automatically applies to usage in any AWS region. No need to purchase separate RIs for each region where you run databases.

3. Cross-Engine Flexibility

Perhaps the most powerful feature: your commitment can apply across different database engines. Start with RDS MySQL, migrate to Aurora PostgreSQL, and your savings plan continues to apply.

4. Simplified Management

Instead of managing dozens of RIs across different instance types and regions, you manage a single hourly commitment that automatically optimizes across your entire database footprint.

Real-World Example: Cost Comparison

Let's look at a typical scenario:

Scenario: Multi-Region RDS Deployment

Current Setup:

  • Production: 2x db.r5.2xlarge in us-east-1 (RDS MySQL)
  • DR: 1x db.r5.2xlarge in us-west-2 (RDS MySQL)
  • Dev/Test: 3x db.r5.xlarge in us-east-1

Monthly On-Demand Cost: ~$4,800

With 3-Year Database Savings Plan: ~$2,880

Annual Savings: $23,040 (40% reduction)

How to Get Started

Step 1: Analyze Your Current Usage

Use AWS Cost Explorer to review your database spending over the past 7, 30, or 60 days. Look for:

  • Consistent baseline usage that runs 24/7
  • Total hourly compute spend across all database services
  • Usage patterns across different regions

Step 2: Use the Savings Plans Recommendations

AWS provides personalized recommendations in the Cost Explorer based on your historical usage. The tool will suggest:

  • Optimal hourly commitment amount
  • Expected savings percentage
  • Payback period

Step 3: Choose Your Commitment Level

You can choose between:

  • All Upfront: Pay the entire commitment upfront for maximum savings
  • Partial Upfront: Pay 50% upfront, rest monthly
  • No Upfront: Pay monthly with slightly lower discount

Step 4: Purchase and Monitor

Purchase through the AWS Cost Management console. Your savings plan activates immediately and automatically applies to eligible usage.

Best Practices for Maximum Savings

1. Start Conservative

Begin with a commitment that covers 60-70% of your baseline usage. You can always purchase additional savings plans later, but you can't reduce an existing commitment.

2. Combine with Spot and On-Demand

Use Database Savings Plans for your baseline, predictable workloads. For variable or development workloads, continue using On-Demand pricing or consider Aurora Serverless.

3. Review Quarterly

Set calendar reminders to review your coverage quarterly. As your usage grows, you may want to purchase additional savings plans to maintain optimal coverage.

4. Tag Your Resources

Implement comprehensive tagging to track which teams or projects benefit from your savings plans. This helps with cost allocation and chargeback.

5. Consider Graviton Instances

Combine Database Savings Plans with Graviton-based instances (db.r6g, db.m6g) for even greater savings - up to 60% total reduction compared to On-Demand x86 instances.

Migration Strategy: From RIs to Savings Plans

If you currently use Reserved Instances, here's how to transition:

Option 1: Let RIs Expire Naturally

The simplest approach - as your RIs expire, replace them with Database Savings Plans. This avoids any complexity but means you'll transition gradually over 1-3 years.

Option 2: Sell RIs on the Marketplace

List your unused or underutilized RIs on the AWS Reserved Instance Marketplace, then use the proceeds to purchase Database Savings Plans.

Option 3: Hybrid Approach

Keep your existing RIs for specific, unchanging workloads, and use Database Savings Plans for everything else. This can work well if you have some very stable workloads.

Common Questions

Can I cancel a Database Savings Plan?

No, savings plans are non-refundable commitments. This is why starting conservative is important.

What happens if I don't use my full commitment?

You still pay for the full hourly commitment whether you use it or not. However, any usage beyond your commitment is charged at On-Demand rates.

Do savings plans apply to storage costs?

No, Database Savings Plans only apply to compute (instance) costs. Storage, I/O, and backup costs are billed separately at standard rates.

Can I share savings plans across AWS accounts?

Yes! If you use AWS Organizations with consolidated billing, savings plans automatically apply across all accounts in your organization.

Real Customer Impact

Early adopters of Database Savings Plans are seeing significant results:

  • A SaaS company reduced their RDS costs by 38% while gaining flexibility to optimize instance types
  • An e-commerce platform saved $180K annually by consolidating 47 RIs into 3 Database Savings Plans
  • A financial services firm simplified their database cost management from 120+ RIs to 8 savings plans

The Bottom Line

Database Savings Plans represent a significant improvement over traditional Reserved Instances. The combination of substantial discounts (up to 40%) with unprecedented flexibility makes them an obvious choice for most organizations running databases on AWS.

The key is to start with a conservative commitment, monitor your usage, and adjust over time. For most organizations, this means:

  • Analyze 60 days of historical usage
  • Commit to 60-70% of baseline usage
  • Choose 3-year term for maximum savings
  • Review and adjust quarterly

Next Steps

Ready to start saving on your AWS database costs? Here's your action plan:

  1. Log into AWS Cost Explorer and review your database spending
  2. Check the Savings Plans recommendations
  3. Calculate your potential savings
  4. Start with a conservative 1-year commitment to test the waters
  5. Monitor coverage and adjust as needed

Database Savings Plans are available now in all AWS commercial regions. There's no reason to delay - every day you wait is money left on the table.