Identify any Amazon Redshift nodes that can be upgraded to Reserved Nodes (RNs) and follow our recommendations for purchasing your RNs in order to receive a significant discount on the hourly charges. Reserved Nodes/Instances represent an AWS billing concept that enables discounted hourly rates for compute capacity in exchange of reserving a certain amount of compute usage upfront. The cost savings when using Reserved Nodes over On-Demand nodes are up to 75% depending on the commitment term (1-year or 3-years) and the payment option used (No Upfront, Partial Upfront or All Upfront). For example, for a ds2.xlarge (Dense Storage) Redshift node provisioned in the US-East region you can save roughly $126 per month by upgrading it to a Reserved Node for a period of 1 year with no upfront costs or save $438 per month (as of October 2016) by reserving it for a period of 3 years with full payment made upfront (All Upfront payment option).
Reserved Nodes represent a good strategy to cut down on Redshift service costs but purchasing them without a plan can feel like a risky process. The Cloud Conformity purchasing recommendations outlined in this rule will help you optimize your RNs spending and save money by using only what you need. Note: In order to verify the current status of purchased reserved capacity and provide accurate recommendations, Cloud Conformity needs access to the AWS payer account (the account designated to pay the bills) or to AWS individual accounts. The following IAM policy allows Cloud Conformity to view all the reserved Redshift cluster nodes available in your account(s):
To verify your current Amazon Redshift compute capacity and determine if there are any candidates for upgrading to Reserved Nodes (RNs), perform the following:
To upgrade your On-Demand Redshift nodes to Reserved Nodes you need to get informed in order to avoid paying for compute resources that you do not need. To make the RN purchase based on the right pricing model, the right type at the right time, follow the recommendations outlined below:
To renew your existing Redshift Reserved Nodes (RNs), you need to repurchase them using the same configuration attributes (AWS region, node type, term, etc). The Redshift RNs are not renewed automatically so you must repurchase your existing RNs in order to avoid On-Demand rates charges when the current reservations expire. To repurchase them perform the following: