Ultimately we are just leveraging the primitives provided by AWS to make this happen. Reserved Instances and Savings Plans help AWS (which is why they offer a d

Ultimately we are just leveraging the primitives provided by AWS to make this happen. Reserved Instances and Savings Plans help AWS (which is why they offer a discount for them) as they're able to more effectively forecast and negotiate bulk purchases with their upstream vendors. If anything, on-demand usage is just charging a higher premium because of the ambiguity of when you may stop using it at a moment's notice.