# Insured Commitments

Archera’s Guaranteed Commitments (GRIs & GSPs) offer a revolutionary approach to cloud cost optimization by providing short-term, insured commitments that eliminate the traditional risks associated with cloud reservations.

{% hint style="warning" %}
**When NOT to Use Archera**: The only scenario where native commitments may be preferred is when you have a stable, predictable workload that you’re confident will run unchanged for 3 years OR you can secure the maximum native discount with upfront payment. In all other cases, Archera’s guaranteed commitments provide additive value through flexibility and risk protection.
{% endhint %}

### ​What are Guaranteed Commitments? <a href="#what-are-guaranteed-commitments" id="what-are-guaranteed-commitments"></a>

Guaranteed Commitments are Archera’s solution to the inflexibility of traditional cloud commitments. They provide:

{% hint style="info" %}
**Guaranteed Reserved Instances (GRIs)**: Short-term reserved instances with insurance protection against underutilization\
\
**Guaranteed Savings Plans (GSPs)**: Flexible compute commitments with guaranteed utilization across multiple services
{% endhint %}

### ​Key Benefits <a href="#key-benefits" id="key-benefits"></a>

<table data-card-size="large" data-view="cards"><thead><tr><th></th><th></th></tr></thead><tbody><tr><td><i class="fa-clock">:clock:</i> <strong>Shorter Terms</strong></td><td><p><strong>30-Day Minimum Terms</strong></p><ul><li>Start with 30-day commitments instead of 1-3 years</li><li>Maintain infrastructure flexibility</li><li>Perfect for dynamic workloads</li></ul></td></tr><tr><td><i class="fa-shield">:shield:</i> <strong>Insurance Protection</strong></td><td><p><strong>Commitment Loss Protection</strong></p><ul><li>Archera insures against underutilization</li><li>No risk of paying for unused capacity</li><li>Guaranteed savings realization</li></ul></td></tr><tr><td><i class="fa-gear">:gear:</i> <strong>Easy Management</strong></td><td><p><strong>Automated Optimization</strong></p><ul><li>Set automation policies for continuous optimization</li><li>Configurable savings thresholds</li><li>Weekly, monthly, or quarterly cadence</li></ul></td></tr><tr><td><i class="fa-money-bill">:money-bill:</i> <strong>No Hidden Fees</strong></td><td><p><strong>Transparent Pricing</strong></p><ul><li>What you see is what you get</li><li>No hidden fees deducted from savings</li><li>Clear, upfront pricing structure</li></ul></td></tr></tbody></table>

### ​How Guaranteed Commitments Work <a href="#how-guaranteed-commitments-work" id="how-guaranteed-commitments-work"></a>

#### Traditional Commitment Challenges

{% hint style="info" %}
Traditional cloud commitments present several challenges:

* **Long-term commitments** (1-3 years) reduce infrastructure flexibility
* **Utilization risk** - you pay for capacity whether you use it or not
* **Technology changes** can make commitments obsolete
* **Business changes** may alter infrastructure needs
  {% endhint %}

#### ​Archera’s Solution <a href="#archeras-solution" id="archeras-solution"></a>

{% hint style="success" %}
Guaranteed Commitments address these challenges through:

* **Insurance Layer**: Archera insures your commitments against underutilization
* **Flexible Terms**: Start with 30-day terms and scale as needed
* **Professional Management**: Expert optimization and ongoing management
* **Risk Transfer**: Archera takes on the utilization risk, not you
  {% endhint %}

### ​Commitment Types Available <a href="#commitment-types-available" id="commitment-types-available"></a>

<table data-card-size="large" data-view="cards" data-full-width="false"><thead><tr><th></th><th></th></tr></thead><tbody><tr><td><strong>Guaranteed Reserved Instances (GRIs)</strong></td><td><p><strong>Instance-Specific Commitments</strong></p><ul><li><strong>AWS</strong>: Individual EC2 instances, RDS, ElastiCache, DynamoDB</li><li><strong>Azure</strong>: Virtual Machine Reserved Instances, SQL Database, Cosmos DB</li><li><strong>Google Cloud</strong>: Compute Engine instances, Cloud SQL</li><li><strong>Term Options</strong>: 30-day minimum, up to 3 years</li><li><strong>Coverage</strong>: Specific instance types and sizes</li><li><strong>Best For</strong>: Predictable, instance-specific workloads</li></ul></td></tr><tr><td><strong>Guaranteed Savings Plans (GSPs)</strong></td><td><p><strong>Flexible Compute Commitments</strong></p><ul><li><strong>AWS</strong>: Broad compute services (EC2, Lambda, Fargate, ECS/EKS)</li><li><strong>Azure</strong>: Compute services across VM families and App Service plans</li><li><strong>Google Cloud</strong>: Spend-based and resource-based Committed Use Discounts</li><li><strong>Term Options</strong>: 30-day minimum, flexible duration</li><li><strong>Coverage</strong>: Dollar-per-hour commitment across compute services</li><li><strong>Best For</strong>: Dynamic workloads with varying compute needs</li></ul></td></tr></tbody></table>

### ​Commitment Comparison Matrix <a href="#commitment-comparison-matrix" id="commitment-comparison-matrix"></a>

When evaluating commitment options, use this comparison to understand the trade-offs:

<figure><img src="https://mintcdn.com/archera/cCBfcsubiIlPNh4r/images/commitment-comparison-matrix.png?fit=max&#x26;auto=format&#x26;n=cCBfcsubiIlPNh4r&#x26;q=85&#x26;s=5b49cd26421ed041206ce2a88d5e1865" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
**Key Considerations When Choosing:**

1. **How much will this commitment save me?** (Archera shows net savings with no hidden fees)
2. **What’s the discount rate for this commitment option?**
3. **How long until I break even and will my infrastructure be up at least that long?**
   {% endhint %}

### ​Important Metrics <a href="#important-metrics" id="important-metrics"></a>

When evaluating commitment performance using both Archera and native cloud tools, focus on these key metrics:

<details open>

<summary>Coverage Amount</summary>

**Definition**: What percentage of your reservable infrastructure has a commitment applied

**Target**: Generally, higher coverage is better as it maximizes cost savings across your infrastructure

**Measurement**: (Reserved Capacity / Total Reservable Capacity) × 100

**Native Tool Tracking**:

* AWS: Cost Explorer and Cost and Usage Reports
* Azure: Cost Management
* GCP: Billing reports

</details>

<details open>

<summary>Net Savings Rate</summary>

**Definition**: The aggregate impact of all your commitments relative to the on-demand rate

**Target**: Higher savings rates indicate more effective commitment strategies

**Measurement**: Total discount percentage achieved across all commitments

**Native Tool Tracking**:

* AWS: Cost Explorer and Cost and Usage Reports
* Azure: Cost Management
* GCP: Billing reports

</details>

<details open>

<summary>Utilization</summary>

**Definition**: How much of your purchased commitments you’re actually using

**Target**: As close to 100% as possible for maximum ROI

**Measurement**: (Used Commitment Hours / Purchased Commitment Hours) × 100

**Native Tool Tracking**:

* AWS: Cost Explorer and Cost and Usage Reports
* Azure: Cost Management
* GCP: Billing reports

</details>

### ​Commitment Planning Options <a href="#commitment-planning-options" id="commitment-planning-options"></a>

Archera provides three default commitment strategies:

<details open>

<summary>Recommended Plan - Start Here</summary>

**Focus**: 30-day GRIs and compute instances

**Philosophy**: Maximum flexibility with immediate savings

**Best For**: Organizations prioritizing flexibility over maximum savings

{% hint style="success" %}
Perfect for getting started with guaranteed commitments
{% endhint %}

</details>

<details open>

<summary>Balanced Plan - Most Popular</summary>

**Focus**: All reservable services with mixed terms

**Philosophy**: Balance of savings and flexibility

**Features**: Combines 30-day and 1-year commitments across all services

{% hint style="info" %}
Most customers choose this option for ongoing optimization
{% endhint %}

</details>

<details open>

<summary>High Savings Plan - Maximum Discount</summary>

**Focus**: Maximum discount through longer terms

**Features**: Includes 3-year commitments and upfront payments

**Consideration**: Higher savings but reduced flexibility

{% hint style="warning" %}
Only consider if you have highly predictable, long-term workloads
{% endhint %}

</details>

### ​Automation Policies <a href="#automation-policies" id="automation-policies"></a>

{% hint style="info" %}
Archera offers fully optional automation policies that:

* **Monitor** your infrastructure continuously
* **Apply** new commitments when savings thresholds are met
* **Operate** on your preferred cadence (weekly, monthly, quarterly)
* **Cancel** anytime with full control retained
  {% endhint %}

#### ​Policy Configuration <a href="#policy-configuration" id="policy-configuration"></a>

#### &#x20;<a href="#policy-configuration" id="policy-configuration"></a>

{% stepper %}
{% step %}
**Set Savings Threshold**

Define minimum savings amount required to trigger automation

{% hint style="success" %}
Start with a conservative threshold like $100/month to test automation
{% endhint %}
{% endstep %}

{% step %}
**Choose Cadence**

Select how frequently the system should evaluate new opportunities

{% hint style="info" %}
Weekly cadence works well for dynamic environments
{% endhint %}
{% endstep %}

{% step %}
**Monitor Performance**

Track automated savings and adjust thresholds as needed
{% endstep %}

{% step %}
**Maintain Control**

Cancel or modify policies anytime through the platform

{% hint style="info" %}
You always retain full control - automation is completely optional
{% endhint %}
{% endstep %}
{% endstepper %}

### ​Getting Started <a href="#getting-started" id="getting-started"></a>

Ready to implement Guaranteed Commitments? Here’s how to begin:

<table data-view="cards"><thead><tr><th></th><th></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><i class="fa-user-plus">:user-plus:</i> <strong>Sign Up with Archera</strong></td><td>Create your account and connect your cloud environments.</td><td><a href="https://app.archera.ai/signup">https://app.archera.ai/signup</a></td></tr><tr><td><i class="fa-chart-line-up">:chart-line-up:</i> <strong>Platform Access</strong></td><td>Access the Archera platform to start managing commitments</td><td><a href="https://app.archera.ai">https://app.archera.ai</a></td></tr></tbody></table>

{% hint style="info" %}
**Risk-Free Optimization**: Guaranteed Commitments are completely opt-in and designed to eliminate traditional commitment risks. You maintain full control of your AWS account and infrastructure while benefiting from professional optimization and insurance protection.
{% endhint %}

### ​Why Choose Guaranteed Commitments? <a href="#why-choose-guaranteed-commitments" id="why-choose-guaranteed-commitments"></a>

{% hint style="success" %}
Traditional commitments require you to predict your infrastructure needs months or years in advance. Guaranteed Commitments let you optimize costs today while maintaining the flexibility to adapt tomorrow.
{% endhint %}

### ​Benefits Summary <a href="#benefits-summary" id="benefits-summary"></a>

### &#x20;<a href="#benefits-summary" id="benefits-summary"></a>

<table data-view="cards" data-full-width="false"><thead><tr><th></th><th></th></tr></thead><tbody><tr><td><strong>Immediate Savings</strong></td><td>Start saving immediately with 30-day terms</td></tr><tr><td><strong>Zero Risk</strong></td><td>Zero utilization risk through insurance protection</td></tr><tr><td><strong>Expert Management</strong></td><td>Professional management and optimization</td></tr><tr><td><strong>Transparent Pricing</strong></td><td>Transparent pricing with no hidden fees</td></tr><tr><td><strong>Automation</strong></td><td>Automated policies for hands-off optimization</td></tr><tr><td><strong>Full Control</strong></td><td>Full control and cancellation rights</td></tr></tbody></table>

{% hint style="warning" %}
**Remember**: The only time to consider native 3-year commitments over Archera is when you have completely predictable workloads that will run unchanged for 3 years AND you can get maximum upfront discounts. In all other scenarios, Archera’s guaranteed commitments provide superior value.
{% endhint %}


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