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In 2009 AWS launched their EC2 Reserved Instance (RI) pricing model , providing a significant discount compared to the on-demand pricing model if you are willing to commit to 1 or 3 years of usage.

Cost management on AWS is a hot topic, with hundreds of blogs on making the right choice of RI’s. A new market of AWS cost management tools emerged, with tool vendors promising massive ROI. Based on AWS billing & usage data analysis, these tools will provide RI recommendations. AWS’s own Trusted Advisor will also provide this kind of analysis, as included in their higher level support plans.

I highly recommend my SDL FredHopper colleague David Costa’s presentation on the topic, as he basically wrote the (internal) book on how to do this at scale: Cost Optimization at Scale.

While you can shift RI reservations, after you made them;

• Switch Availability Zones within the same region
• Change between EC2-VPC and EC2-Classic
• Change the instance size within the same instance type

There are several use-cases where you would want end your reservation before the reservation end date;

• Switch Instance Types.
• Buy Reserved Instances on the Marketplace for your medium-term needs.
• Relocate region.
• Bad capacity management.
• Unforeseen business or technology changes.

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With AWS celebrating 10 years after the launch of Amazon S3 in March 2006 and Twitter also celebrating 10 years , I wanted to revisit my ‘cloud rules’ published on Twitter and on my Dutch blog in 2011. The original was written after 2 years working on an enterprise IT implementation of whatever was perceived ‘cloud’ in 2009, building a Gov version of Nebula (the Openstack predecessor) and starting to utilize AWS & Google Apps in enterprise IT environments.

As the original rules where published on Twitter with its 140 character limit, it lacked some nuance and context so I converted it in to a blog post. The original 7 rules from 2011, with context;

My Cloud rules: #7 – A cloud definition is not relevant. In a few years we will not call it cloud any more…

— Jan Wiersma (@jmwiersma) August 9, 2011

Even though the debate on a definition of ‘what is cloud’ died down a bit, it does still surface now and then. Given the maturity of the solutions , the current market state and the speed of change in the market of ‘cloud’ ,I still stick to my opinion from 5+ years ago: a generic definition of cloud is not currently relevant.

The most common used definition seems to be the one NIST (pdf) published in 2011, and provides a very broad scope. Looking at IT market development the last few years and the potential of what is still to come, we are continually refining these definitions.
As ‘cloud’ products and services pushed to the current market will be common IT practice in a few years,  we will slowly see the ‘cloud’ name being dropped as a result.

There is still a valid argument to have a common definition of ‘cloud’ and the delivery models within companies, to avoid miscommunication between IT and the business. The actual content of that internal definition can be whatever you want it to be, as long as there is a common understanding.

The definition debate in the general IT market will continue until the current hype phase has passed. As soon as we enter Gartner’s “Trough of Disillusionment” all marketing departments will want to move away from the ‘cloud’ term, and replace it with whatever the new hype is. We can already see this happening with the emergence of ‘DevOps’, ‘BigData’, ‘Internet of Things (IoT)’.

Just remember there is just one truth when it comes to ‘cloud’ ; “There is no cloud. It’s just someone else’s computer” 

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Several of my quotes ended up in Dec 2015’s Database Marketing Magazine.

See the full version of the magazine here.

Or PDF of my quotes here.