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How It Works
Cloud providers offer significant discounts in exchange for committing to a set level of usage over a fixed term. On AWS, that means Reserved Instances (up to 72% off on-demand) or Compute Savings Plans (up to 66% off). Azure offers Reservations (up to 72%) and Savings Plans (up to 65%). GCP offers Committed Use Discounts (up to 57%). The catch is that you must commit before you know exactly what you will use. Commitment forecasting closes that gap. It analyzes historical consumption patterns, growth trends, and planned workload changes to estimate future usage with enough confidence to size a commitment correctly. A well-sized commitment captures most of the available discount without leaving you holding capacity you cannot use.
Why It Matters for Cloud Cost
Overcommitting locks in spend on resources that go unused, producing waste with no offset. Undercommitting leaves discount potential unrealized, meaning you pay on-demand rates for usage that could have been covered. Both errors compound over a 1-year or 3-year term. Organizations that treat commitment purchases as a one-time decision rather than a continuous forecasting exercise routinely experience coverage gaps as workloads scale, or stranded reservations as architectures change. Accurate forecasting turns commitment purchasing from a risk event into a repeatable, optimizable process.
CoPilot is Usage AI’s recommendation mode, surfacing commitment options for customer review and approval before any purchase is executed.