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Cloud FinOps
book

Cloud FinOps

by J. R. Storment, Mike Fuller
December 2019
Intermediate to advanced content levelIntermediate to advanced
284 pages
7h 38m
English
O'Reilly Media, Inc.
Content preview from Cloud FinOps

Chapter 12. Paying Less: Rate Optimization

While usage optimization is about reducing resource usage to avoid costs, rate optimization is about paying less for the resources you continue to use.

By now, you know that not all cloud providers are created equal. With multiple purchasing options, billing in different time increments, and a slew of payment structures and commitments, each provider brings with it a variety of financial ramifications for customers. In this chapter, we’ll cover some of the pricing options. Reserved Instances (RIs) and Committed Use Discounts (CUDs) are quite complex, so we’ll save those for Chapter 13.

Compute Pricing

Depending on the cloud service provider and the resources you’re using, there can be many ways to pay. Different cloud service providers also use different terms for similar pricing offerings. First, let’s take a quick look at the big three providers in Table 12-1.

Table 12-1. Comparison of reservation options across the big three cloud service providers
  AWS Google Azure
Public price On-demand On-demand Pay as you go
Spot Spot Preemptible Low-priority VM
Sustained use discount N/A Sustained Use Discount N/A
Reserved Reserved Instances/Savings Plans Committed Use Discount Reserved VM Instances
Volume discounts Volume discounts Volume discounts Volume discounts

On-Demand

When you request a normal resource and run it without making any precommitments (like reservations), you’re charged the list price, or the on-demand ...

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Publisher Resources

ISBN: 9781492054610Errata Page