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AWS’s EC2 Price Cuts: What Changed for Linux—and What Didn’t

AWS’s Linux-related EC2 price cuts were limited to particular products and dates—not a universal discount. Here’s what changed and how to check current costs.
From TheFinanceBase Team2 min to read
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AWS announced two separate historical EC2 price reductions that affected Linux workloads, but neither was a blanket cut for every Linux instance. In May 2020, AWS lowered prices for new EC2 Instance Savings Plans and Standard Reserved Instances by 1% to 18% in selected configurations; the change excluded On-Demand instances, Compute Savings Plans, and Convertible Reserved Instances. In 2022, AWS separately reduced pricing for EC2 instances running SUSE Linux Enterprise Server (SLES). These announcements describe past changes, not guaranteed savings on a current bill.

What AWS lowered in May 2020

On May 8, 2020, AWS said lower prices were in effect for new EC2 Instance Savings Plans and Standard Reserved Instances. AWS reported reductions ranging from 1% to 18%, depending on region, commitment term, and instance family. Its examples used selected M5, C5, and R5 instances with free Linux OS, and the displayed reductions varied by configuration. AWS’s announcement and examples are specific to those products and configurations.

The Linux examples do not mean every Linux EC2 instance received the same percentage reduction. AWS explicitly excluded On-Demand instances, Compute Savings Plans, and Convertible Reserved Instances from the May 2020 change. The reported percentages were tied to that announcement’s prior-price comparison, not a permanent discount promise.

A separate price change for SLES in 2022

AWS announced a distinct SLES update on June 1, 2022, effective May 28, 2022. It said SLES On-Demand EC2 instances could cost up to 24% less than the previous On-Demand rates, while SLES Savings Plans could cost up to 52% less than the previous Savings Plans rates. The change applied to SLES OS only, not Linux distributions generally. AWS’s SLES announcement gives the scope and comparison baselines.

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The 2020 and 2022 figures should not be combined into one “Linux discount”: they concern different dates, products, operating systems, and prior-rate baselines. “Up to” also identifies a maximum, not the expected reduction for every region, instance, or account.

How to estimate what an EC2 workload costs now

Today’s estimate depends on the configuration and purchase model. AWS lists On-Demand, Savings Plans, Reserved Instances, Spot, and Dedicated Hosts among the EC2 purchasing choices. On-Demand avoids a long-term commitment; Savings Plans and Reserved Instances can involve one- or three-year commitments, so a lower committed rate must be weighed against the workload’s stability and need for flexibility. AWS’s EC2 documentation explains the service and purchasing choices.

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For a useful comparison, keep the workload and assumptions consistent. Specify:

  • Region, instance family, and instance size
  • Operating system, including whether it is free Linux or paid SLES
  • Expected running time and usage pattern
  • Purchase option and, for a commitment, its term
  • Whether the workload is steady enough to justify a commitment

Enter those assumptions in the AWS EC2 Pricing Calculator and compare the resulting estimates. AWS rates and purchase terms can change, so use current estimates rather than treating historical announcement percentages as current prices.

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Check OS billing rules as well as the hourly rate

The operating system can affect billing as well as the listed rate. AWS’s current EC2 pricing page says eligible usage for several operating systems is billed by the second with a 60-second minimum. The On-Demand pricing page says SLES instances are billed for a full hour. Check the current rule for the OS and purchase option in your estimate; the billing interval can matter especially for short-lived instances. EC2 pricing details and On-Demand pricing details provide the relevant terms.

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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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