# What are commitments in AWS?

In AWS, commitments refer to Savings Plans and Reserved Instances, which are ways to save costs on cloud computing resources.&#x20;

Savings Plans are a flexible commitment type that offers significant discounts in exchange for a dollar spend commitment per hour over a period of one or three years, ideal for variable and unpredictable workloads.&#x20;

On the other hand, Reserved Instances involve purchasing computing capacity in anticipation of future use, ensuring substantial discounts in exchange for a usage commitment over a period of one or three years, suitable for predictable and steady workloads.&#x20;

Although these commitments provide significant cost savings compared to on-demand usage, one drawback is that they might constrain you to specific instance types or regions, thereby limiting your flexibility to adjust to evolving requirements.

### Why am I free from commitments?

With Dotted, you don't need to worry about being constrained by your infrastructure resources due to commitments. Dotted autonomously manages these commitments and shares the resulting reductions with you at no cost.


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