Convertible RI instances also billed as On-Demand. Why?

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I've been running few on-demand instances for 3 months now and decided to switch them to Convertible RI. I purchased the Convertible RI on 8th July. Today I notice all three instances for which I purchased region scoped convertible RI, are being billed both as On-Demand and RI. For example, I see all these lines in my Bills das

DescriptionUsage QuantityUSD
$0.3424 per On Demand Windows t3.xlarge Instance Hour174 HrsUSD 59.58
USD 0.2511 hourly fee per Windows (Amazon VPC), t3.xlarge instance569.523 HrsUSD 143.01
Windows (Amazon VPC), t3.xlarge reserved instance applied, t3.xlarge instance used80 HrsUSD 0.00

How should I interpret this? I'm concerned because in just 4 days, I see:

Trend compared to prior month

(up) 64.8%

On 8th July before I purchased Convertible RI, the On Demand usage was

166 hours at USD 56.84.

Today (11th July), I see that entry is 174 hours at USD 59.58

KSK
asked 2 months ago303 views
3 Answers
2
Accepted Answer

I took a good look at the numbers on Bills and also in Cost Explorer. So this wasn't a a 'double billing' situation. Turns out I wasn't looking at it the right way.

On 8th July, when I purchased Convertible RI, 8 hours had already passed and I was charged On-Demand rate for those 8 hours. After that moment, I was charged the Convertible RI rate.

On 12th July, when I looked at the Bills dashobard, the trend indicated UP 64.8% since same time last month. If I had looked on 9th July, I would've seen something like UP 80% since same time last month. This is because the entire Convertible RI price was charged 100% on 8th July. We pay for every second of the month, irrespective of the number of running hours. Notice $0 convertible RI billing and On-Demand billing since 9th July. Whatever small cents were billed for t2.micro were due to a second t2.micro instance that I powered on for few hours at On-Demand rates.

All clear. No problems. Hope this helps anyone else who gets spooked easily when inspecting their bills.

KSK
answered 2 months ago
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EXPERT
reviewed 2 months ago
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iBehr
reviewed 2 months ago
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Sandeep
reviewed 2 months ago
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Hello, check these steps to resolve the issue

There are a couple of things to consider regarding your AWS bill with the new Convertible Reserved Instance (RI):

Understanding the Bill:

Double Billing: It's unusual to see both On-Demand and RI charges for the same instance hour. This could be a temporary glitch or a configuration issue.

Resolving the Issue:

  • Contact AWS Support: The best course of action is to contact AWS Billing Support to clarify the double billing for the same instance hour. They can investigate the issue and ensure your RI discount is applied correctly.
  • Review RI Coverage: Double-check if your Convertible RI covers the instance type, region, and usage patterns (hours per day/month) of your on-demand instances. You might need to adjust the RI configuration if there's a mismatch.

AWS documentation on Convertible RIs: https://docs.aws.amazon.com/whitepapers/latest/cost-optimization-reservation-models/standard-vs.-convertible-offering-classes.html

AWS Cost Management documentation: https://aws.amazon.com/aws-cost-management/details/

Contact AWS Billing Support: https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/billing-get-answers.html

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Sandeep
answered 2 months ago
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I'm glad you sorted it out! As I was just about to explain the same :) The RIs are billed on a pro-rated basis each month, so if you purchased them on the 8th, you would only pay the RI rate for the remainder of the month. And you'd have to pay for the RI regardless of the running instances (even if it's not applying to any instances).

Yes, you would see the on-demand charges for the instance that you were running before you bought RIs. The discount doesn't apply retrospectively, so that's intended.

And also, the billing works hourly - every hour the system checks which instances you're running, and which RIs you have, and then applies a discount respectively. If you stop your instances for some time, the RI will not apply and you technically lose your discount for those hours.

Some people think that you purchase just a number of RI-hours for a month, and then as long as you run X number of instance-hours during that month, you're sorted. But in practice the billing has to be continuous. You either have to run those instances continuously for the discount to apply each hour, or otherwise the RI will have no instances to apply to... in which case you lose those RI-hours...

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answered 2 months ago

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