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Reduced Correction Window When Purchasing AWS Savings Plans Late in the Month
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Reduced Correction Window When Purchasing AWS Savings Plans Late in the Month
Benjamin
CER:
AWS-Compute-9237
Service Category
Compute
Cloud Provider
AWS
Service Name
AWS EC2
Inefficiency Type
Commitment risk due to timing constraints
Explanation

This inefficiency occurs when Savings Plans are purchased within the final days of a calendar month, reducing or eliminating the ability to reverse the purchase if errors are discovered. Because the refund window is constrained to both a 7-day period and the same month, late-month purchases materially limit correction options. This increases the risk of locking in misaligned commitments (e.g., incorrect scope, amount, or term), which can lead to sustained underutilization and unnecessary long-term spend.

Relevant Billing Model
Savings Plans are billed as a fixed hourly commitment. AWS allows refunds for Savings Plans with commitments under $100/hour, but refunds are only permitted within 7 calendar days of purchase and within the same calendar month.
Detection
  • Review the timing of Savings Plan purchases relative to month-end
  • Identify commitment purchases made within the final 7 days of a month
  • Assess whether review and validation processes allow sufficient time for correction
Remediation
  • Establish an internal cutoff that avoids Savings Plan purchases late in the month
  • Incorporate purchase date as a required validation check during commitment reviews
  • Plan commitment actions earlier in the month to preserve the full correction window
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