The Path to Profitable Reservations

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Now that you’ve gotten up to speed on the differences between hourly and upfront costs from my first blog post, I will dive into instance and size. I’ve spent many years figuring out how to yield the biggest profits from reservations (and even designed a tool – Parquantix – to maximize the potential).

Focus on the Core

To be as profitable as possible, focus on the three core reservation types: for the current generation instance types, r3, c3 and m3 provide the greatest profit percentage, in that order. The r3 is about 8 points greater than a c3 while the c3 and m3 are very close to each other.

If you happen to still be living in the days of old, m2, m1 and c1 provide the greatest profit percentage with the m2 being the most profitable of any reservation type. Or, if on the flipside, you’re on the cutting edge and have purchased the m4 and c4, each has about the same profitability as the “core three” mentioned above.

Don’t Get Stranded

You may notice that there are many m1 reservations for sale. Don’t get overly tempted; this type may be more profitable but, as the new generation reservations provide better performance at a lower cost, clients may move their instances to these new types. The end result: you’re left with stranded reservations. In short, be careful not to purchase too many prior generation reservations as client usage can change quickly.

For t2 reservation types, there is a miniscule profit difference between the reservation types and a no upfront reservation would be appropriate in this case.

If the nuances still seem a bit overwhelming, feel free to contact me to learn how Parquantix can simplify the process for you (and double your profits).

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