Reserved vs On-Demand Cloud: Optimising Your Compute Strategy
Cloud compute pricing offers two primary models: on-demand flexibility and reserved commitment discounts. The right mix can save organisations 30-60% on compute costs.
On-Demand
Pay per hour/second with no commitment. Best for variable workloads, development environments, and unpredictable demand. Maximum flexibility at the highest per-unit cost.
Reserved Instances
Commit to 1-3 years for significant discounts (30-60% off on-demand pricing). Best for stable, predictable workloads like production databases and core application servers.
Optimisation Strategy
- Analyse 3-6 months of usage data to identify stable workloads
- Reserve capacity for baseline consumption
- Use on-demand for peak and variable loads
- Consider savings plans for flexibility across instance types
- Review and adjust quarterly
Optimise your cloud spending. Contact info@petatec.uk.
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Petatec supports cloud migration, cybersecurity, infrastructure optimisation, Microsoft 365, backup, monitoring and operational support.
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