AWS Amortization Fixed, Paid, and Actual Price Descriptions

Products

• CloudHealth

Issue/Introduction

Difference between Fixed, Paid and Actual Price in regards to amortization:

 

1) For a new RI purchased from AWS, in its original state

Fixed Price is the Upfront cost paid for the RI.  The Paid price and the Actual price also equal that amount.

 

2) For all other RIs (ones that have been modified, or have expired)

Fixed Price = $0 

Paid Price = Carried over upfront cost from the original purchases

Actual Price = Paid Price * remaining term

 

Fixed Price = What Amazon reports. For the initial purchase, this is the amount paid per instance (e.g if you bought 1 RI contract for 5 instances, this is the per instance cost. Multiply by 5 for total cost)

Paid Price  = As RI’s are modified - this still reflects the per unit price (Amazon reports 0 for all RI’s which were not delivering money to AWS). e.g if you had an RI for r3.2xl, and modified it to 2 RI contracts for r3.large - the Paid price will reflect the split.

Actual Price = Reflects the time aspect of RI modifications (as well as splits/merges).  If you had a 1 year RI , and 6 months in you modified it, it’s Actual Price will be 1/2 (since it has half the remaining lifetime).

 

NOTE:  These metrics are used strictly for amortization calculations and reporting

 

Resolution

Example 1

1 RI - $1200 All upfront 1 yr RI

Fixed: $1200

Paid: $1200

Actual: $1200

 

Modify the AZ 6 months in

1 RI (New AZ)

 

Fixed: $0

Paid: $1200

Actual: $600

Actual Price = Paid Price * remaining term

 

Example 2

1 RI - $1200 All upfront 1 yr RI

Fixed: $1200

Paid: $1200

Actual: $1200

 

Split into 2 RIs 6 months in

2 RIs

 

EACH will show:

Fixed: $0

Paid: $600 (x 2 = $1200)

Actual: $300 (x 2 = $600)