Commitments: Savings Plans & Reserved Instances

Track coverage, utilisation, expiry and purchase recommendations for Savings Plans, Reservations and committed use discounts.

Commitments: Savings Plans & Reserved Instances

Cloud providers give a discount if you promise to spend a set amount for one or three years. This page shows how much of your spend is covered by such promises, how well you are using them, and when they expire.

Where in CostGlassCosts → Commitments
PlanGrowth and above (the menu item is greyed out on lower plans)
Who can do thisEveryone on the plan can view. Purchases are made by you in the cloud console.
Time needed20 minutes
In short
  • Coverage = how much of your eligible spend is discounted by a commitment. Low coverage means money left on the table.
  • Utilisation = how much of what you committed to you actually used. Low utilisation means you over-committed and are paying for nothing.
  • The verdict banner puts over-commitment first, because unused commitment is money already spent.
  • CostGlass never buys a commitment. You buy in the AWS, Azure or Google Cloud console.
  • AWS has the full picture. Azure and Google Cloud show coverage, with less detail (see Limits).
Commitments: the verdict banner, the four headline cards, the purchase simulator and the renewal radar.

Terms in plain words

On-demand
The normal list price you pay when you have no commitment. It is the most flexible and the most expensive.
Commitment
A promise to the cloud provider to use (and pay for) a certain amount for a fixed term, in return for a lower price. You pay it whether you use it or not.
Savings Plan (AWS)
You commit to a number of pounds or dollars per hour of compute. Any matching usage up to that amount is charged at the discounted rate.
Reserved Instance / Reservation
A commitment to a specific kind of resource (for example a particular instance family in a region) for one or three years. AWS calls them Reserved Instances; Azure calls them Reservations.
Committed use discount (Google Cloud)
Google Cloud’s version of the same idea.
Coverage
The share of eligible spend that was charged at a commitment rate instead of on-demand.
Utilisation
The share of your commitment that your usage actually consumed. 100% means none was wasted.
Break-even
For options with an upfront payment, the month from which the commitment has cost less than staying on-demand would have.

Before you begin

Before you begin
  • A Growth plan or above. If the menu item is greyed out, upgrade from the Billing & Plans page.
  • At least one of AWS, Azure or Google Cloud connected with live access.
  • Click Sync Commitments once after connecting. Commitment data is also refreshed automatically every day.
  • Rightsize first. Committing to servers that are about to shrink locks in a bill you were about to reduce (see the Savings playbook).

How to read the page

Toolbar

ControlWhat it does
Cloud PlatformChoose All Clouds (Portfolio), AWS, Azure or Google Cloud. Numbers are never blended into one misleading percentage per cloud; the portfolio view is a combined summary and the per-cloud views are separate.
Lookback Window30D, 60D or 90D: how many days the figures are based on.
Sync CommitmentsFetches your latest inventory, coverage and recommendations from every connected cloud now.

The toolbar also reminds you of the target: coverage between 70% and 85%, with about 15% headroom kept on-demand.

Verdict banner

VerdictMeaningWhat to do
Over-CommittedAWS utilisation is below 95%. You are paying for commitment you do not use. This is checked first.Do not buy more. Find the workloads that shrank or moved region.
Under-CommittedCoverage is below 70%.Look at the recommendations below, after rightsizing.
Healthy PortfolioCoverage is at or above target (and, for AWS, utilisation is healthy).Watch the expiry calendar so coverage does not lapse.

The four cards

Commitment Coverage
Coverage percentage, with the amounts covered and on-demand underneath. Green at 70% or more, amber below.
Realized Savings vs On-Demand
What your commitments saved compared with on-demand prices, per month and per year.
Uncovered On-Demand Opportunity
An estimate of monthly savings if you reached the target coverage. For AWS this uses an assumed Savings Plan discount of about 27%, so it is a planning figure, not a quote.
Active Commitments & Expiry
How many commitments are active and how many expire within 90 days.

Trajectory chart

Multi-Cloud Commitment Coverage Trajectory shows coverage over the chosen window. Switch between Coverage (%) (with a dashed 70% target line) and Spend (covered spend against on-demand spend). If there is not enough history it asks you to synchronise first.

Purchase recommendations

Automated Commitment Recommendations (AWS, Azure & Google Cloud) is ranked by monthly saving.

ColumnMeaning
PlatformWhich cloud made the recommendation.
Plan & ServiceThe type of commitment and what it covers.
Payment OptionNo Upfront, Partial Upfront or All Upfront (explained below).
Hourly CommitThe hourly amount you would commit to.
UpfrontThe amount paid on day one (a dash means none).
Monthly SavingThe estimated monthly saving.
Annual SavingMonthly saving times twelve.
Discount %The estimated discount.
Break-EvenUpfront cost divided by monthly saving, or Immediate if nothing is paid upfront.
Note
The recommendations are the cloud’s own (for example AWS’s Savings Plan purchase recommendation) and are a forecast for your usage, not a quote or a guarantee. If a cloud has not supplied any yet, the page can show a CostGlass-calculated estimate from your on-demand spend, based on a fixed 70% target and a fixed assumed discount. Treat it as a prompt to check the provider’s own tool.

Inventory

Active & Expiring Commitments Inventory lists each commitment: platform, name and ID, type, service, monthly commitment, state, expiry date and days remaining. Use Filter commitments… to search and Include retired to show expired ones. A commitment expiring within 90 days is highlighted in amber.

Renewal radar

Commitment Renewal Radar & Automated Alerts lists commitments expiring within 90 days, with a Model in Simulator button that scrolls to the simulator for sizing a replacement and Preview Emailthat sends a sample reminder to your own inbox. CostGlass runs a daily job that sends renewal reminders at 60, 30 and 7 days before expiry. When a commitment expires, matching usage falls back to on-demand rates.

The simulator (what-if)

The Interactive Commitment Purchase Simulator & ROI Modeler lets you try a scenario before you decide. It starts from your real figures (Baseline On-Demand, Eligible Spend, Current Coverage) and then asks for three choices.

SettingWhat it doesOptions
Target Coverage SliderThe coverage you want to reach. Buttons set it quickly.Conservative (65%), Sweet Spot (75%), Aggressive (85%)
Commitment TermOne or three years.1-Year, 3-Year
Payment OptionHow you pay.No Upfront, Partial Upfront, All Upfront

It then shows Projected Coverage, Additional Monthly Savings, Annual Run-Rate Savings and a Break-Even Horizon.

Where the simulator's discount comes from
The discount on the term buttons (for example "1-Year (~22% off)") is taken from your own purchase recommendations when there is a recent one (from the last 14 days) for that cloud and term. For AWS that is the Compute Savings Plan, or failing that the EC2 Instance Savings Plan or EC2 Reserved Instance. For Azure it is the average over your reservation recommendations, weighted by spend. Where there isn't one, the simulator uses a typical published discount for that cloud and says so in the note under the buttons. Google Cloud always uses the typical figure, because Google's recommendations don't include a percentage. All Clouds blends the clouds by their on-demand spend.br/>Upfront and break-even come from your AWS recommendation for the chosen payment option when one exists. Otherwise they are estimated (All Upfront pays the whole term's commitment at purchase, Partial Upfront about half) and the break-even is marked "(estimate)". Use the simulator to compare scenarios, then confirm real figures in the cloud's own purchase screen.

Deciding term and payment option

Term: 1 year
Smaller discount, less lock-in. Better if your workloads or architecture are likely to change, or this is your first commitment.
Term: 3 years
Bigger discount, much more lock-in. Only for steady workloads you are confident will exist in three years.
No Upfront
Pay monthly. Lowest discount of the three, no cash outlay and an immediate break-even.
Partial Upfront
Pay part now, the rest monthly. A middle path.
All Upfront
Pay everything now. Highest discount, but cash is tied up and the break-even is longest.
Tip
A common, careful approach is to cover your steady baseline first (the 70% target leaves room), choose a one-year term, and add more later. Never commit to the peak.
Risk of over-commitment
A commitment is a bill you cannot cancel. If your usage shrinks, moves region or changes to a type the commitment does not cover, you keep paying. Coverage above about 85% leaves little room for change. That is why the verdict flags low utilisation before low coverage.

How to buy one

CostGlass is read-only and does not purchase anything. After deciding:

1
Rightsize first
Resize or remove waste before committing. See Rightsizing and the Savings playbook.
2
Open the cloud’s purchase page
AWS: Billing and Cost Management, then Savings Plans (or the EC2 Reserved Instances page). Azure: Reservations or Savings plans in the portal. Google Cloud: Committed use discounts in the console. You need billing permissions in the payer or management account.
3
Enter the recommended amount
Use the hourly commitment, term and payment option from the recommendation, or your own choice from the simulator. Review the summary the cloud shows before confirming.
4
Return to CostGlass
Click Sync Commitments. The new commitment appears in the inventory, and coverage rises as the discount applies to usage.
Note
Savings Plans and Reservations are generally bought at the organisation’s payer (management) account, and the discount then applies across linked accounts. CostGlass’s summary and trend are therefore organisation-wide.

Scope and limits

  • AWS: full coverage and utilisation (Savings Plans and Reserved Instances), inventory with expiry, and purchase recommendations.
  • Google Cloud: coverage, resource-based commitment inventory and recommendations. Google’s inventory returns no dollar value, so CostGlass does not compute a utilisation percentage for it.
  • Azure: coverage. Reservation inventory and utilisation need a separate tenant-level consent step and are not available yet, so the verdict is coverage-only.
  • Coverage and utilisation are never averaged across clouds into one percentage.
  • Commitments are priced in each cloud’s own currency and converted for display.
  • Some cost figures are estimates built on assumed discount rates (stated above).
  • Reaching Commitments needs a Growth plan or above.

Frequently asked questions

My coverage is 0%. Is that wrong?
It may be correct if you have no commitments. If you do have some, click Sync Commitments, and check that the account is connected with live access and that the right provider is selected.
Why does the page say Over-Committed when my coverage is high?
Utilisation below 95% outranks coverage. You are paying for more commitment than you use. Do not buy more until usage catches up or the commitment expires.
Does CostGlass buy or sell commitments?
No. It only reads. There is no purchase button.
What happens when a commitment expires?
The matching usage is billed at on-demand rates again, which can cause a sudden rise in your bill. That is why the renewal radar exists.
Can I get the renewal emails?
A daily job sends reminders at 60, 30 and 7 days before expiry. Use Preview Email to see what they look like.
How is Realized Savings calculated?
From the savings your provider reports for the commitments over the chosen window, scaled to a month.

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