cloudthinker-ai Reserved Instance Planning
Phase 1: Usage Analysis
- Collect compute usage data for the analysis period
- Instance types and sizes
- Utilization patterns (steady-state vs. burst)
- Regional distribution
- Operating system and tenancy
- Hours running per month per instance type
- Identify steady-state baseline workloads
- Separate predictable from variable workloads
- Calculate current on-demand spend by instance family
Usage Pattern Classification
| Instance Family | Region | Avg Utilization | Pattern | RI Candidate |
|---|---|---|---|---|
| % | Steady/Burst/Scheduled | Yes/No |
Phase 2: Commitment Options Analysis
Payment Option Comparison
| Option | Upfront Cost | Monthly Cost | Total Cost (1yr) | Total Cost (3yr) | Savings vs On-Demand |
|---|---|---|---|---|---|
| On-Demand | $0 | 0% | |||
| No Upfront RI | $0 | ~% | |||
| Partial Upfront RI | ~% | ||||
| All Upfront RI | $0 | ~% | |||
| Savings Plan (Compute) | ~% | ||||
| Savings Plan (Instance) | ~% |
- Compare reserved instances vs. savings plans
- Evaluate 1-year vs. 3-year commitment terms
- Assess flexibility needs (instance size, region, family)
- Calculate break-even points for each option
Phase 3: Coverage Recommendation
- Calculate optimal reservation coverage (typically 70-80% of steady-state)
- Recommend specific reservations by instance family and region
- Identify coverage gaps to fill with savings plans
- Plan remaining variable workloads for on-demand or spot
- Project annual savings from recommendations
Recommended Purchases
| Priority | Type | Instance Family | Region | Quantity | Term | Payment | Monthly Savings |
|---|---|---|---|---|---|---|---|
| 1 |
Phase 4: Purchase Execution
- Get budget approval for commitment purchases
- Execute purchases in priority order
- Verify reservations apply to target instances
- Set up utilization monitoring for new reservations
- Document all purchases and expiration dates
Phase 5: Ongoing Management
- Monitor reservation utilization weekly
- Identify underutilized or unused reservations
- Plan exchanges or modifications for mismatched reservations
- Queue renewal analysis 90 days before expiration
- Review coverage quarterly and adjust strategy
Counter-Rationalizations
| Shortcut | Counter | Why |
|---|---|---|
| "We can skip some steps for this case" | Adapt the workflow steps, don't skip them | Skipped steps are where incidents and oversights originate |
| "The user seems to already know what to do" | Complete all workflow phases with the user | The workflow catches blind spots that experience alone misses |
| "This is a minor case, full process is overkill" | Scale the process down, don't turn it off | Minor cases become major when unstructured; the process scales, not disappears |
| "I'll fill in the details later" | Complete each section before moving on | Deferred details are forgotten; real-time capture is more accurate |
| "The template output isn't necessary" | Always produce the structured output format | Structured output enables comparison, audit trails, and handoff to other teams |
Output Format
- Usage Analysis Report: Instance utilization patterns and classification
- Savings Projection: Cost comparison of commitment options
- Purchase Recommendations: Prioritized list with projected savings
- Reservation Inventory: All active commitments with expiration dates
- Quarterly Review Template: Coverage and utilization tracking
Action Items
- Pull usage data for the analysis period
- Classify workloads by usage pattern
- Calculate savings projections for each option
- Get budget approval for recommended purchases
- Execute reservation purchases
- Set up ongoing utilization monitoring
- Schedule quarterly reservation review