Premiums and Term Lengths

Archera Guaranteed Commitments have two variable components — a term length and a premium — that are inversely related. The longer the term length, the lower the premium, and vice versa: shorter term lengths have higher premiums.

The Guaranteed Commitment Premium is the difference between the standard Savings Rate of the underlying standard RI/SP and the net savings rate of the Guaranteed Commitment. You can see the Guaranteed Commitment premiums on your invoice page.

Keep in mind, Guaranteed Commitment premiums are only assessed on realized savings. Meaning — if for some reason you can't use the underlying infrastructure, you aren't responsible for the premium.

Related Resources

• How Does Guaranteed Commitment Pricing Work?
• What are Guaranteed Commitment allowances?
• What are my Guaranteed Commitment billing options if I'm still on AWS Credits?

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