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This doesn’t make sense, there is no reason AWS would want this shut down. They are buying reserved instances, which AWS sell because it helps them to do so. Th
by limpigninja 5y ago
This doesn’t make sense, there is no reason AWS would want this shut down. They are buying reserved instances, which AWS sell because it helps them to do so. They are charging the customer 20% savings to help them. They are buying the reserved instances back themselves if needed.
From an AWS perspective this is simple market usage of AWS RIs and cost savings for the customer while easy/reliable usage predictability for AWS for cpu forecasting. It’s a win. And as below looks like they have a healthy relationship with AWS.
- viraptor 5y agoThey're effectively a kind of bulk resellers. AWS may choose to be happy about it (happy customers keen to spend more on services) or not (less AWS income). It really depends on how the management sees it.
- Johnny555 5y agoI don't think it would result in less AWS income -- AWS knows exactly how much on-demand, reserved, and spot instances cost them and they price them accordingly.
- foota 5y agoI don't think this is true, if it shifts usage from spot instances to the reseller's spot instances backed by AWS reserved instances they'll be making less money.
- Johnny555 5y agoThey shift to reserved instances, not spot instances. It'd be hard for a service provider to shift their customers instances to spot instances unless the customer could tolerate the spot instances being shut down on short notice, and if they can, that customer may as well just use the spot instances themselves. Worst case, this will increase usage of reserve instances and reduce on-demand usage, but AWS priced them accordingly, so they don't care
- stu2b50 5y agoThat’s only true in a nominal sense. Money right now is worth more than money in the future. Money spent on reserved instances is money Amazon has right now, whereas net AWS spend from spot instances is money in the future. How much money right now is worth more varies, but Amazon knows best here and prices accordingly.