ElastiCache Reserved Nodes Optimization

Opportunity Name:

ElastiCache Reserved Nodes Optimization

AWS Resource Type:

Amazon ElastiCache

Opportunity Description:

CloudFix helps AWS users reduce ElastiCache costs by identifying opportunities to purchase Reserved Nodes instead of continuing with on-demand instances.

This Finder analyzes Cost and Usage Report (CUR) data and AWS Cost Explorer recommendations to identify ElastiCache instances that have been running continuously and would benefit from reserved pricing. It considers different payment plans and reservation terms to maximize cost savings while maintaining performance.

Key Benefits:

  • Reduce ElastiCache costs by switching from on-demand to Reserved Nodes.
  • Customized recommendations based on historical usage data.
  • Multiple pricing options for 1-year and 3-year reservations with No Upfront, Partial Upfront, or All Upfront payment plans.

Criteria for Identifying the Opportunity:

CloudFix detects ElastiCache reservation opportunities based on the following conditions:

  • The resource is an Amazon ElastiCache instance.
  • The annual on-demand cost is greater than $100, ensuring that reservations are cost-effective.
  • The instance has been running continuously for at least 7 days.
  • The instance is not already covered by an existing Reserved Node.
  • The instance is not tagged with "do_not_fix" or equivalent.
  • The instance type is eligible for AWS Reserved Pricing.

Potential Savings:

Savings vary depending on the reservation term and payment option. On average:

  • 1-Year Reserved Nodes save up to 35% over on-demand pricing.
  • 3-Year Reserved Nodes save up to 55% over on-demand pricing.
  • All Upfront payments yield the highest cost reductions.

Example savings for ElastiCache (1TB, US East 1 region):

Term Payment Option On-Demand Annual Cost Reserved Annual Cost Savings (%)
1 Year No Upfront $5,000 $3,400 32%
1 Year Partial Upfront $5,000 $3,250 35%
3 Years No Upfront $5,000 $2,600 48%
3 Years All Upfront $5,000 $2,250 55%

Recommendation Report

CloudFix generates a detailed recommendation report that includes:

  1. ElastiCache Instance Details:

    • Node Type
    • Engine Type (Redis/Memcached)
    • Region
  2. Reservation Purchase Options:

    • 1-Year & 3-Year Terms
    • No Upfront, Partial Upfront, and All Upfront Payment Plans
    • Savings Amount ($) and Savings Percentage (%)
  3. Cost Comparison:

    • Current On-Demand Cost vs. Reserved Instance Cost for each term and payment plan.
    • Estimated cost savings over the selected term.
  4. Visualizations:

    • Historical usage trends (7, 30, 60 days).
    • Projected savings over the reservation period.

What Happens When the Recommendation is Accepted?

CloudFix does not automatically implement the change. Instead, it provides a recommendation report that users can review before manually purchasing Reserved Nodes through the AWS console.

Is It Possible to Roll Back After Implementing the Recommendation?

No, AWS does not allow cancellations of Reserved Node purchases. However, if your needs change, you can resell Reserved Nodes through the AWS Reserved Instance Marketplace.

Can CloudFix Implement the Fix Automatically Once I Accept the Recommendation?

No, this opportunity requires manual implementation. CloudFix identifies savings opportunities and provides a recommendation report, but you must purchase Reserved Nodes manually through AWS.

Does This Fix Require Downtime?

No. Purchasing Reserved Nodes does not affect running workloads. Your ElastiCache instances continue running as usual, and the savings are automatically applied once AWS processes the reservation.

Additional Resources:

 

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