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Guaranteed Commitment Allowances are a way for Archera to manage the risk associated with allowing customers to offload some of their commitment risk to us.
See What are Guaranteed Commitment allowances? for background.
These allowances are mainly set by Archera's underwriting algorithm based on market liquidity for different commitment types. However, part of the total Guaranteed Commitment allowance a given customer has access to is based on the volume and diversity of Guaranteed Commitments the customer has purchased.
This means that customers who have purchased more Guaranteed Commitments across different service types (e.g. EC2, RDS, Redshift, etc.) as well as different instance families within those services get access to higher overall Guaranteed Commitment allowances.
If you are interested in learning more, please contact us at support@archera.ai.
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