When you configure an RI Portfolio Allocation, you are defining how much of the RI Spend Coverage Target to allocate towards 1 year and 3 year RIs. Based on that input, ProsperOps automatically builds and manages a conforming RI portfolio that optimizes your discount.
As with financial investing, the actual portfolio allocation can drift from the target over time. Reasons for this include:
- EC2 spend grows or shrinks without adjusting the Spend Coverage Target. This makes on-demand spend a greater or lesser percentage of the total portfolio, which impacts 1 year and 3 year RI allocation percentages. As your EC2 spend changes, we recommend you review and update your RI Spend Coverage Target. For most customers, a quarterly review is sufficient, although customers with significant EC2 spend changes may want to review monthly.
- If you reduce your RI Portfolio Allocation in ways that can't be immediately implemented, your RI Portfolio Allocation will converge to the target over time. Specifically, this will occur if you:
- Decrease your 3 year RI Portfolio Allocation
- Decrease your 1 year RI Portfolio Allocation without also increasing your 3 year Portfolio Allocation by an equal or greater amount