How It Works
When a company uses AWS Organizations to group multiple AWS accounts under a single management (payer) account, Reserved Instance discounts from any member account can be shared across all other accounts in the organization. AWS applies the discount automatically wherever the matching instance usage is found, regardless of which account runs the workload. No manual reassignment is needed. The feature is enabled by default but can be turned off at the individual account level if a team wants to keep their commitments private to their own account.
Why It Matters for Cloud Cost
Without X-Account RI Sharing, Reserved Instances purchased in one account sit idle if that account’s usage drops, while another account continues paying full on-demand rates for the same instance type. Sharing removes that inefficiency. Finance and platform teams gain higher commitment utilization across the entire organization without needing to consolidate workloads into a single account. The result is better discount coverage and lower overall cloud spend, with no structural changes to the account hierarchy required.
Usage AI manages Reserved Instance coverage across your organization through Usage Flex Reserved Instances, covering RDS, ElastiCache, OpenSearch, Redshift, and DynamoDB, with savings of 30 to 40% versus on-demand and $0 upfront.