The savings plan quotes the 1 Year no upfront commitment option a higher effective discount when compared to other two offering types
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The savings plan quotes the 1 Year no upfront commitment option a higher effective discount when compared to other two offering types

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Article ID: 390146

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Updated On:

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CloudHealth

Issue/Introduction

This is because savings plans are applied to the instances with the deepest discount first. 

The platform is able to cover more of the usage as the customer buys more discounted savings plans. The effective savings percentage is lower, however the coverage and actual savings are higher.  

Resolution

As more saving plans are purchased, the average discount on those savings plans will decrease.  For example with the 3 year purchases, the coverage stays the same which is why the effective discount is increasing.