Insured Commitments

What are they?

Archera's Insured Commitments are regular cloud commitments (RIs, SPs, RVMs, CUDs) with the added Archera Guarantee that we will buy them back from the customer after a specified amount of time. We call these Guaranteed Reserved Instances (GRIs), Guaranteed Savings Plans (GSPs), Guaranteed Virtual Machines (GVMs), and Guaranteed Committed Use Discounts (GCUDS).

For example, on AWS, when a customer purchases an Archera Guaranteed Reserved Instance for 30 days or one year, Archera will:

Purchase a 3-year, no upfront Reserved Instance or Savings Plan.
Guarantee to buy that back from the customer after the term that the customer specifies.

📐 Example: Customer purchases a 30-day Archera Guaranteed Reserved Instance. After 30 days, the customer could immediately sell that back to Archera, having benefitted from the lower rate. They could also keep that Insured Commitment for up to three years if they choose.

How does Archera make money?

If a customer elects to purchase any kind of Insured Commitment, Archera charges a risk premium, just like an insurance company. This premium depends on the term of the agreement. If a customer purchases a 30-day Insured Commitment, the premium will be higher than a 1-year Insured Commitment because Archera takes on less risk.