Amazon Web Services (AWS) is aggressively offering a service called
reserve instances. For a one-time fee, companies may have the?option to launch an EC2 instance for one or three years. AWS maintains it lowers costs as you get a choice of the types of instances you buy . You can get discounts by buying on a volume basis. Reserved instances means AWS guarantees the capacity you need for the workloads you put on the service. It sound good but there are also risks. It's a considerable investment. You get a sense of that on the AWS site. You get a 10% volume discounts when you spend more than $250,000. AWS offers 20% off when you spend more than $2 million and will negotiate when companies buy more than $5 million of reserved instances.
Source: http://feedproxy.google.com/~r/Techcrunch/~3/bkW1-Y5UUEY/
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