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In an effort to simplify the Reserved Instances (RI) model, AWS announced yesterday a change in the model based on customer feedback and purchasing patterns.

AWS will move from three types of RIs – Fixed Price: Heavy, Medium and Light Utilization RIs – to a single type with three payment options. All continue to provide capacity assurance and discounts when compared to On-Demand prices.

The three new payment options give you flexibility to pay for the entire RI upfront, a portion of the RI upfront and a portion over the term, or nothing upfront and the entire RI over the course of the term.

What does this mean for you? These changes will really benefit predictable workloads that are running >30% of the time.  In cases where usage is less consistent, it may be better for companies to stick with on-demand rates.  We’ve developed some related research on usage trends. Meanwhile, our role as a top AWS partner continues to be simplifying procurement of all AWS products and services.

Download the AWS Usage infographic

Read more about the new RI model.