For enterprises, the all upfront-payments are similar to enterprise agreements they make to buy servers for a data center. For startup companies, they can now get the advantage of RI pricing without paying for it upfront.
Cloudability Chief Customer Officer J.R. Storment says not nearly enough customers the company works with take advantage of RI pricing though. Still too many users are leaving savings on the table by using on-demand instances. If a company plans to use AWS for more than six months, and it plans to grow that usage over time, then Storment says it's worth it to look at RI pricing.
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