When can we expect to see recurring fees in the payment model of Reserved Instances in cloud services, and how does this relate to the utilization of those Reserved Instances?
Article ID: 284028
Updated On:
Products
Issue/Introduction
Recurring fees are typically seen when the "Partial Upfront" or "No Upfront" payment options are chosen for Reserved Instances in cloud services like AWS.
In the "Partial Upfront" model, a portion of the cost is paid upfront, while the remainder is spread out over the duration of the contract in the form of monthly recurring fees.
With the "No Upfront" option, there's no upfront payment. Instead, the cost is distributed evenly and paid monthly throughout the contract term.
It's worth noting that these recurring fees apply regardless of whether the Reserved Instances are fully utilized. Even if you don't use all of the reserved capacity, you're still obligated to pay the recurring fees as per the terms of the contract you entered when you reserved the instances.
Note: When opting for the "All Upfront" payment method, the entire cost of the Reserved Instance term is paid upfront, eliminating recurring fees. The recurring fee cost would display as $0.
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