VMware's CloudHealth supports AWS Savings Plans today

 Amazon describes Savings Plans as “A new flexible pricing model which helps you save up to 72% on EC2 and Fargate usage. Customers simply commit to a consistent amount of usage (e.g. $10/hour) over 1 or 3 years, and in exchange they will receive a discount for that usage.”

Whenever a new offering is added to the mix, determining how it fits into your overall portfolio of options can be complicated -- even if it's designed to make things simpler! This is especially true if you’ve been managing your cloud costs in a spreadsheet or home-grown tools. So let’s explore in more detail what Savings Plans are and how they work. 

Savings Plans is a flexible pricing model that helps you save up to 72 percent on Amazon EC2 and AWS Fargate usage. Savings Plans provides you lower prices for your Amazon EC2 usage and Fargate, in exchange for a commitment to a consistent usage amount (measured in $/hour) for a one or three year term. You can purchase Savings Plans from any account, payer or linked. The Savings Plans will first apply to usage in the account that owns the plan, and then apply to usage in other accounts in the AWS Organization.

Every type of compute usage has an On-Demand rate and a Savings Plans rate. For example, if you commit to $10/hour of compute usage, your usage is charged at your Savings Plans rate up to $10. Any usage beyond your Savings Plans commitment is charged at your regular On-Demand rates.

When you sign up for Savings Plans, the prices you'll pay for compute usage stays the same though the plan term. You can pay for your commitment using All Upfront, Partial upfront, or No upfront payment options.

To get started, use AWS Cost Explorer to view your recommended Savings Plans commitment, purchase Savings Plans, manage your Savings Plans, and view your historical AWS usage. These recommendations make it easy for you to know the optimal Savings Plans commitment level for you. You can customize the recommendation to meet your needs and then purchase your Savings Plan.

Types of AWS Savings Plans and how they work

Here’s how Savings Plans work:
Every instance type has an On-Demand rate and a Savings Plan rate (these are the same as, or very similar to, Reservation rates).
Customers can commit to a certain spend per hour, and they will get a discount on all compute usage up to that limit; afterwards they get billed On-Demand rates.
The Savings Plan commitment is assessed on an hourly basis and AWS will apply the discount to the area with the deepest discount.

Compute Savings Plans provide the most flexibility and prices that are up to 66 percent off of On-Demand rates. These plans automatically apply to your EC2 instance usage, regardless of instance family (for example, M5, C5, etc.), instance sizes (for example, c5.large, c5.xlarge, etc.), Region (for example, us-east-1, us-east-2, etc.), operating system (for example, Windows, Linux, etc.), or tenancy (for example, Dedicated, default, dedicated host). They also apply to your Fargate usage. With a Compute Savings Plans, you can move a workload from C5 to M5, shift your usage from EU (Ireland) to EU (London), or migrate your application from Amazon EC2 to Amazon ECS using Fargate at any time. You can continue to benefit from the low prices provided by Compute Savings Plans as you make these changes.

EC2 Instance Savings Plans provide savings up to 72 percent off On-Demand, in exchange for a commitment to a specific instance family in a chosen AWS Region (for example, M5 in Virginia). These plans automatically apply to usage regardless of size (for example, m5.xlarge, m5.2xlarge, etc.), OS (for example, Windows, Linux, etc.), and tenancy (Host, Dedicated, Default) within the specified family in a region.

With an EC2 Instance Savings Plan, you can change your instance size within the instance family (for example, from c5.xlarge to c5.2xlarge) or the operating system (for example, from Windows to Linux), or move from Dedicated tenancy to Default and continue to receive the discounted rate provided by your EC2 Instance Savings Plan.

Note: Savings Plans provides low prices in exchange for commitment. The terms of the commitment can't be changed after purchase. As your usage changes, you can sign up for additional Savings Plans.

Savings Plans and RIs

Savings Plans are a flexible pricing model that offers low prices, just like Amazon EC2 RIs, but with added flexibility. With Savings Plans you can reduce your bill by committing to a consistent amount of compute usage (measured in $/hour), instead of specific instance configurations. Savings Plans provides you the flexibility to use the compute option that best suits your needs at low prices, without having to perform exchanges or modifications.

Compute Savings Plans provide savings up to 66 percent off On-Demand, similar to Convertible RIs. Compute Savings Plans automatically reduce your cost on EC2 Instance usage and Fargate. EC2 Instance Savings Plans offer savings up to 72 percent off On-Demand, similar to Standard RIs, and automatically saves you money on any instance usage within a given EC2 Instance family in a Region of choice. For more information, see Plan Types.

Comparing Savings Plans and RIs

* Convertible RIs can be changed across instance families, sizes, OS, and tenancy, but requires you to manually perform exchanges.
** Regional convertible RIs and Regional standard RIs provide instance size flexibility.

Note:
Savings Plans don't provide capacity reservations, but you can allocate On-Demand Capacity Reservation (ODCR) for your needs and your Savings Plans will apply.
Savings Plans prices for instances running SLES are different compared to the corresponding RI price.
Savings Plans are currently not available for China and Asia Pacific (Osaka-Local) Regions.