Canvas CloudAI
Canvas Cloud AI

Reserved Instances

intermediate
cloud
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Definition

Cloud computing capacity purchased in advance at discounted rates in exchange for a commitment period (1-3 years). Like signing a long-term lease for lower monthly rent.

Real-World Example

A company commits to reserved instances for their production databases, saving 40% compared to on-demand pricing over three years.

Cloud Provider Equivalencies

All four offer discounted pricing in exchange for committing to a consistent level of compute usage for a term (typically 1 or 3 years). AWS/Azure/OCI are commonly framed as reserving instance/VM capacity (with different scopes and flexibility options), while GCP primarily provides commitment-based discounts (CUDs) applied to eligible usage.

AWS
Amazon EC2 Reserved Instances
AZ
Azure Reserved VM Instances
GCP
Committed use discounts (CUDs)
OCI
OCI Reserved Instances

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