if ProsperOps generates an RI optimization that results in savings, we charge 20% of the savings over the term of the RI contract. You retain 80% of all savings. We call this the Savings Share.
The Savings Share is calculated against RI savings generated from ProsperOps Managed RIs only. We use the same formula as AWS for determining RI savings, which is the difference between the RI price (what you paid) and the on-demand price (what you otherwise would have paid). More specifically:
RI savings = [the RI on-demand equivalent cost] - [the effective RI reservation
cost (amortized upfront costs plus recurring hourly costs)], anytime an RI match occurs