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by sargun 1213 days ago
This is like insurance in a couple of different ways, and makes me happy, but concerned. usage.ai is basically taking a bet that a large number of their customers wont cut back on RDS spend simultaneously.

AWS massively made RDS instances cheaper when they released RDS on Graviton. I can only imagine that'd nearly put a company like usage.ai out of business. I'm curious what defense mechanism they have against this.

1 comments

> AWS massively made RDS instances cheaper when they released RDS on Graviton. I can only imagine that'd nearly put a company like usage.ai out of business.

Are the on demand and reserved prices the same? If RI’s exist are still cheaper, it shouldn’t impact their business model.

They made the new instance type much cheaper.

Users already committed to RI cannot change instance types and remain bonded to the contract.

Usage.ai and others give you an insurance that you can get out of the contract. If that existed before, users would return the old instances to usage.ai and get the cheaper ones.

Usage.ai end up with a lot of reserved instances no one wants, with a large contract to pay.

I guess it depends if they’re buying convertible or non-convertible RI’s behind the scenes. (Unless RDS doesn’t have the concept of convertibles)