April 7, 2022 · 1 min read
AWS has three main billing modes:
Traditionally, companies have to optimize between flexibility and cost savings when using AWS; each savings mode has its pros and cons. With Usage, you can get the best from each mode with none of the downside. Because Usage’s optimizations are at the billing layer of AWS (Usage optimizes On-Demand and Reserved Modes), you don’t need to rewrite application logic, or worry about any downtime.
Here’s what the conventional billing modes with AWS look like
Spot Mode gives customers the greatest possible savings-- up to 90% off -- but often requires engineering work at the architecture level to get savings (as instances can be shut-off by Amazon with only 120 seconds of notice).
On-Demand Mode gives customers the greatest flexibility, but with the highest cost: the instance is billed at the highest possible rate when on, but can be turned off instantly to pause billing.
Reserved Mode offers an in between of On-Demand Mode’s flexibility and Spot Mode’s savings.
Reserved Mode offers a sweet spot for customers seeking something between the flexibility of On-Demand and the cost effectiveness of Spot. It requires zero engineering rework and is zero-downtime: you can obtain savings without moving any servers.
Both AWS On-Demand and AWS Reserved billing modes have their pros and cons. We work with customers to blend these two modes to yield significant savings while getting the best of both worlds.
With potentially billions of different pricing scenarios for a customer, finding the right balance within a given billing mode’s options, across at least 200 instances, between Reserved Instances and Savings Plan, is no trivial task
Enter Usage AI: Usage automatically scans your instances, crunches through all combinations to find you the most optimal discounts, and automates the entire process of buying and selling your reservations for you, automatically.
To take it a step further, Usage AI uses 3-year no-upfront commitment RIs to get you the greatest possible marketplace discount of 57% and bundles it with guaranteed buyback. So you can rest assured that if your compute needs change in the future, Usage AI will automatically buy-back your old commitments and buy you new commitments.
Kaveh is the Founder and CEO of www.usage.ai