InformationWeek: Amazon On-Demand Vs. Reserved Instances: Cost Comparison
With rapid price cuts rampant these days, long-term contracts that freeze prices for cloud services over a long period might look like a bad bet. Doubters ask, why not just go with on-demand services and ride that hourly price decline down its slippery slope?
Several knowledgeable sources have raised that question to support the idea that locking yourself into a long-term contract — such as Amazon Web Services’ three-year contract for Reserved Instances — is a losing proposition. For one example, see GigaOm’s article, “Where’s My Cloud Price Cut?”
But cloud cost and analytics firm Cloudability has plotted the cost of Amazon Reserved Instances through a series of steep price cuts and found that Amazon has consistently kept its long-term RI servers priced lower than on-demand, by-the-hour instances, even during periods of rapid price cuts.
Read the full article at InformationWeek