Stretching Your Cloud Computing Budget: Introducing Reserved Instance Discounts

- Team Vast

July 8, 2023-GPU

In the rapidly evolving world of cloud computing, remains steadfast in our commitment to being the leader in cost-effective cloud GPU rental. Today, we are thrilled to announce our latest feature – Reserved Instance Discounts – aimed at helping our users get even better pricing for longer term reservations.

On-Demand vs Reserved: Striking the Right Balance

In the on-demand world of cloud computing, users only pay for what they use and have the flexibility to end a contract at any time. While this offers unrivaled flexibility, the occupancy rate – or the fraction of time GPUs are rented – often clocks in at less than 100%, sometimes even as low as 50%. The resulting impact on provider revenue is noticeable as their hardware sits idle.

Clients willing to commit upfront to a longer rental term can now leverage our Reserved Instance Discounts feature which solves this idle problem. With this, clients can commit to an extended rental contract by pre-paying in advance. While they give up the on-demand liquidity, they receive a hefty discount in return. The provider controls the discount percentage, so each offer will vary.

How Reserved Instance Discounts Work

Here's the breakdown:

  1. Users can deposit credits into a specific instance using either the CLI or website GUI (look for the green tag). The CLI gives users a detailed control over deposit amounts, while the GUI provides a user-friendly interface. The clickable green tag in the GUI is shown for participating machines in the bottom right of the instance card.

green tag

  1. The discount schedule is a function of the time duration of the balance. Larger deposits unlock greater discounts, albeit with diminishing returns. The default discount schedule offers a 20% discount for a 1-month commitment, 30% for a 3-month commitment, and 40% for a 6-month commitment.

  1. To give an example, if an instance usually costs $1/hr on-demand, a 1-month prepaid rental with the default discount schedule would cost $576 instead of $720. That's a savings of 20%!

  2. When additional funds are deposited into an existing reserved instance, everything is recalculated according to the new total balance, leading to a new discount rate.

The specific discount schedule can vary from provider to provider, with 40% at 6 months being the default setting.

Link to the Documentation

For the complete description of how these works, read our documentation for Reserved Instance Discounts.

Seize the Savings

Our new Reserved Instance Discounts feature is here to change the way you use cloud computing, providing an avenue to commit to your long-term compute needs while reaping the benefits of considerable discounts. So whether you are a start-up scaling your operations or an established business with predictable computing demands, let help you make the most of your cloud computing budget. Your savings start today with Reserved Instance Discounts. Take control of your cloud computing journey and optimize your budget like never before.

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