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When you cancel a Reserved Instance, you will not receive a refund or credit towards a new Reserved Instance. Canceling a Reserved Instance simply means that the remaining days on the reservation will be forfeited, and you will no longer be able to use them. However, you will be able to create a new Reserved Instance for the same or higher value using the newer instance types (M5, R5, or T3) as mentioned in the announcement email. This will allow you to continue to benefit from the cost savings associated with Reserved Instances, but using the newer, more powerful instance types.
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