[dig1]

> ...does it all add up to cost savings?

IMHO it adds, but only if you are big enough. Netflix level. At that level, you go and dine with Bezos and negotiate a massive discount. For anyone else, I’d genuinely love to see the numbers that prove otherwise.

> There's zero personal responsibility

Unfortunately, this seems to be the unspoken mantra of modern IT management. Nobody wants to be directly accountable for anything, yet everyone wants to have their fingerprints on everything. A paradox of collaboration without ownership.

[RajT88]

Cloud providers have formalized these deals actually. If you promise to spend X amount over Y period, you get Z discounts.

And this is not reserved instances, this is an org level pricing deal. Some have been calling it anti-competitive and saying the regulators need to look at the practice.

[SJC_Hacker]

> IMHO it adds, but only if you are big enough. Netflix level. At that level, you go and dine with Bezos and negotiate a massive discount. For anyone else, I’d genuinely love to see the numbers that prove otherwise.

It adds if you're smart about using resources efficiently, at any level. And engineer the system to spin up / spin down as customers dictate.

For situations where resources are allocated but are only being utilized a low percentage (even < 50% in some cases), it is not cost effective. All that compute / RAM / disk / network etc. is just sitting there wasted.