Commitment Recommmendations FAQ

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  • The commit value in savings plan is on higher end when compared to RI for EC2. Do you recommend to buy both?

In Cloudability , It is possible that the commitment amount in a saving plan is higher than the Reserved instance for AWS EC2. The reserved instances provide a discount when you reserve a certain amount of computing power (measured per hour) for a one- or three-year term while savings plans provide a discount when you commit to spending a certain amount (measured in dollars per hour) for a one-or three-year period. The decision to purchase a resource or spend based commitment is up the FinOps leader in the organization. Eligible usage may be covered by multiple commitment types. Currently, we provide these recommendations in a vacuum from one another. For example, it is not recommended that all reserved instances and savings plans for AWS EC2 be purchased.

  • What is the best strategy to use commitments? What are best practices? Are you expecting to consider and act on all the recommendations at once?

The strategy chosen when using commitment-based discounts to save on cloud spend will vary depending on the organization, vendor, and commitment type. There is no universally best approach. Since commitments usually involve one- or three-year contracts, it is crucial to consider future plans carefully. Generally, it is advisable to make smaller, frequent purchases over time until the desired coverage percentage is achieved. Once this threshold is reached, additional commitments may be purchased as usage grows or as existing commitments expire. It is also important not to renew commitments if a decrease in usage is anticipated.

In Cloudability's support for commitments, the commitment recommendations provide what commitments should be purchased to maximize net savings, given the selected usage range. Individual recommendations are provided for each permutation of the criteria necessary for each commitment type where coverage usage is detected. In affect, Cloudability Commitment Recommendations provide you the optimal commitment. Organizations should strive to this coverage level to achieve optimal savings, however, as best practices call for small incremental purchases, the optimal recommendation should rarely be acted upon directly.