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Comment on Simplifying the EC2 Reserved Instance Modelparent

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That is the whole point. The price IS going to go down overt time. So by getting you to commit to a price Amazon can more accurately predict their growth and you get a fairly decent discount in trade. 1 year terms are much wiser IMHO because of the constant price lowering.

Agreed, 1 year is the sweet spot here. I didn't appreciate the opportunity cost of getting the 3-year RI, as much as the straw man "savings" against the current on-demand prices.

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