Purchasing Amazon EC2 Reserved Instances (RIs) is one of the most effective ways to reduce your cloud spend, however, RIs require continuous monitoring and management.
AWS offers Convertible Reserved Instances which can be exchanged in a variety of ways, but the number of options for making exchanges can be a source of confusion. The power of Convertible RIs is that they provide additional flexibility, at a slightly higher price, which is why enterprises should ensure that they are utilizing them to their full potential.
Exchanging Convertible RIs
When you exchange a Convertible Reserved Instance, you are essentially ‘purchasing’ a new reservation of equal or higher value than your existing reservation. The exchange is free, however you may be required to pay a true-up cost, which is the prorated upfront cost of the difference between your existing and new Convertible RIs.
Convertible Reserved Instances can be exchanged for a different instance type, instance size, operating system, or tenancy, without resetting the term (1 or 3-years). The possibilities don’t end there, you are also able to exchange a portion of a Convertible RI by splitting it into two or more reservations. This flexibility does come with additional guidelines, such as, AWS does not allow you to exchange All Upfront and Partial Upfronts for No Upfront Convertible RIs, but you can exchange All Upfronts for Partial Upfronts and vice versa.
How CloudHealth Can Help
Calculating exchanges with spreadsheets presents the possibility of error and takes countless hours. CloudHealth offers the industry’s first solution for maximizing your return on investment from exchanging Convertible RIs. The CloudHealth EC2 Convertible RI Exchanger is a recommendation engine that provides the highest savings while limiting additional investment, saving you tens or even hundreds of thousands of dollars in a matter of minutes.
“CloudHealth’s Convertible RI Exchanger makes it easy for us to take advantage of Convertible RI Exchanges within our AWS environment. With CloudHealth, not only are we able to benefit from considerable cost and resource savings, but we are more efficient and effective as an organization.”Senior Director of Operations, Ziff Davis