Understanding Reserved Instance and Savings Plan Reallocation

For more information about Reserve Instance (RI) and Savings Plan reallocation, refer to the following topics:

• Reserved Instances

• Non-Automated Enterprise Discount Program Savings Plan

• Automated Enterprise Discount Program Savings Plan

• Savings Plan Examples

Reserved Instances

In Reserved Instances, consider the following:

• The DiscountedUsage line item type is no longer $0 cost, but instead shows the effective cost, such as:

  • Unamortized costs—This is only the portion of the effective cost due to recurring RI fees.
  • Amortized costs—This is the full effective cost, including the upfront fee.

• The RIFee line item type is modified to account for the effective cost being distributed out to the DiscountedUsage line item type. The effective cost includes:

  • Unamortized costs—The RIFee line item type is $0 if the RI is 100% utilized.
  • Amortized costs—The RIFee line item type may have a negative cost to account for the upfront cost of the RI, to offset the cost in the Fee line item type.

Non-Automated Enterprise Discount Program Savings Plan

In the Savings Plan, consider the following:

• Instead of the SavingsPlanCoveredUsage line item type being equivalent to the on-demand costs, and that the SavingsPlanNegation line item type negates this cost, consider the following changes:

  • The SavingsPlanCoveredUsage line item type is changed to show the effective cost, and the SavingsPlanNegation line item type is set to $0.
  • The SavingsPlanRecurringFee line item type is adjusted to remove the cost shifted to the SavingsPlanCoveredUsage line item type.

• For unamortized costs, the effective cost accounts only for the recurring portion of the Savings Plan, and the SavingsPlanRecurringFee line item type is $0 when 100% utilized.

• For amortized costs, the effective cost in the SavingsPlanCoveredUsage line item type includes both the recurring and upfront fees, and the SavingsPlanRecurringFee line item type may have a negative cost to account for the SavingsPlanUpfrontFee line item type.

Automated Enterprise Discount Program Savings Plan

In the Savings Plan, consider the following:

• Instead of SavingsPlanCoveredUsage being $0, consider the following changes:

  • The SavingsPlanCoveredUsage line item type is changed to show the effective cost.
  • The SavingsPlanRecurringFee line item type is adjusted to remove the cost shifted to the SavingsPlanCoveredUsage line item type.

• For unamortized costs, the effective cost accounts only for the recurring portion of the Savings Plan, and the SavingsPlanRecurringFee line item type is $0 when 100% utilized.

• For amortized costs, the effective costs in the SavingsPlanCoveredUsage line item type includes both the recurring and upfront fees, and the SavingsPlanRecurringFee line item type may have a negative cost to account for the SavingsPlanUpfrontFee line item type.

Savings Plan Examples

The Savings Plan examples are as follows:

• Amortized Costs (Before Reallocation)

• Amortized Costs (After Reallocation)

• Unamortized Costs (Before Reallocation)

• Unamortized Costs (After Reallocation)

Amortized Costs (Before Reallocation)

Cloud Account	Resource ID	Line Item Type	Amortized Cost
child_1	instance_1	SavingsPlanCoveredUsage	1.0
child_1		SavingsPlanNegation	-1.0
payer	savings_plan_1	SavingsPlanRecurringFee	0.3
payer	savings_plan_1	SavingsPlanUpfrontFee	0.3

Amortized Costs (After Reallocation)

Cloud Account	Resource ID	Line Item Type	Amortized Cost
payer	savings_plan_1	SavingsPlanUpfrontFee	0.3
payer	savings_plan_1	SavingsPlanRecurringFee	-0.3
child_1	instance_1	SavingsPlanCoveredUsage	0.6
child_1		SavingsPlanNegation	0

Unamortized Costs (Before Reallocation)

Cloud Account	Resource ID	Line Item Type	Unamortized Cost
payer	savings_plan_1	SavingsPlanRecurringFee	0.3
child_1	instance_1	SavingsPlanCoveredUsage	1.0
child_1		SavingsPlanNegation	-1.0

Unamortized Costs (After Reallocation)

Cloud Account	Resource ID	Line Item Type	Unamortized Cost
payer	savings_plan_1	SavingsPlanRecurringFee	0
child_1	instance_1	SavingsPlanCoveredUsage	0.3
child_1		SavingsPlanNegation	0