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Sure, but you could perhaps model that as some form of default risk. Real bonds also have a risk of not returning the yield they're supposed to return (just loo
by Yrlec 14y ago
Sure, but you could perhaps model that as some form of default risk. Real bonds also have a risk of not returning the yield they're supposed to return (just look at Greece). Also, if they add support for getting paid in AWS-credits, I'm sure they'd be able to lower the transaction-fee.
- somic 14y agoI don't think RI is a bond. Bond is a debt instrument and you don't loan anything to AWS when you purchase an RI. RI is a hedging instrument instead - you think that if you end up running an instance non-stop or near-non-stop, you are hedging against paying a full price. Hence, RI is more like an option. Further parallels with options are: 1) your upfront payment is option premium; 2) your RI has time value which is always declining as time passes; 3) RI gives you a right, not obligation, to do something; 4) RIs have many series, each expiring at the same time, just like exchange-traded options that expire at predetermined times. All in all, this is huge. Or even bigger than huge. It can enable certain things that were not possible before, and personally I am very excited about opportunities it will present and how it will re-shape public IaaS.