Create and implement an AWS Budget for EC2 Savings Plan coverage

We will create a monthly savings plan coverage budget, which will notify if the coverage of Savings Plan for EC2 is below the specified amount.

You should not set an arbitrary limit for the alarm, (i.e. alarm if coverage is less than 80%) instead select your current level of coverage - so if coverage reduces, you can act and increase coverage if required.

  1. From the Budgets dashboard in the console, click Create budget: Images/SPBudget1.png

  2. Select Savings Plans budget, and click Next: Images/SPBudget2.png

  3. Create a cost budget, enter the following details:

    • Period: Monthly
    • Monitor my spend against: Coverage of Savings Plans
    • Coverage threshold: 90%
    • Budget name: SP_Coverage
    • Leave all other fields as defaults
    • Click on the Next button to continue: Images/SPBudget3.png NOTE: NEVER create a utilization budget, unless you are doing it for a single and specific discount rate by using filters. For example you want to track the utilization of m5.large Linux discount. A utilization budget across different discounts will most likely lead to confusion and unnecessary work.
  4. For the budget alert settings, input your email address in the Email recipients field and click on Next: Images/SPBudget4.png

  5. Review the configuration, and click the Create budget button: Images/SPBudget5.png

  6. You have created an Savings Plans Coverage budget: Images/SPBudget6.png

  7. You will receive an email similar to below within a few minutes: Images/SPBudget7.png

You have created a Savings Plan budget. Use this type of budget to notify you if a change in a workload has reduced coverage, a Savings Plan has expired, or additional usage has been created and a new Savings Plan purchase may be required.