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:

  1. 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.
  2. 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
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