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WI #634: Commitment Flexibility Appendix #535

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WI #634: Commitment Flexibility Appendix #535

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@cnharris10 cnharris10 commented Aug 31, 2024 •
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An appendix detailing how various commitment discount purchases and usage records with and without commitment discount flexibility are modeled through various examples.

@cnharris10 cnharris10 changed the base branch from working_draft to commitment-discount-appendix August 31, 2024 19:31
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@cnharris10 cnharris10 changed the title Size flexibility appendix Commitment flexibility appendix Sep 11, 2024
@shawnalpay shawnalpay changed the title Commitment Flexibility Appendix WI #634: Commitment Flexibility Appendix Feb 8, 2025
@shawnalpay shawnalpay removed this from the v1.2 milestone Feb 8, 2025
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@shawnalpay shawnalpay added this to the v1.2 milestone Feb 28, 2025
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Merge branch 'working_draft' of github.com:FinOps-Open-Cost-and-Usage…
bc385bc 
…-Spec/FOCUS_Spec into size-flexibility-appendix
@cnharris10 cnharris10 requested a review from shawnalpay March 1, 2025 21:00
gparker-at-sf
gparker-at-sf approved these changes Mar 7, 2025
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my comments are minor and editorial in nature; approved

specification/appendix/commitment_discounts/commitment_flexibility.md

#### Scenario #2: 0% utilization with a non-matching resource

Purchase: 1 *commitment discount* purchased for 1 year (2023) for 1 VM_Large.
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optionally add a sentence here to clarify that the vendor does not use / support / leverage a normalization factor? To distinguish from the next example.

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@cnharris10 cnharris10 Mar 7, 2025 •
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The broader header on line 21 doesn't make this clear enough?

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ljadvey
ljadvey reviewed Mar 8, 2025
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specification/appendix/commitment_discounts/commitment_flexibility.md

A usage-based [*commitment discount*](#glossary:commitmentdiscount) obligates a customer to a usage amount for one or more related SKUs in return for reduced rates. For example, when a usage-based *commitment discount* is purchased to cover a specific database SKU, this commitment will cover every hour over the term where at least one instance of this SKU is running. The usage-based commitment can cover 1 resource over the hour, or in the case of [*commitment discount flexibility*](glossary:commitmentdiscountflexibility), it can cover a portion of 1 resource or multiple resources at a time.

When mixing usage-based commitment discounts with and without *commitment discount flexibility* and [*CommitmentDiscountQuantity*](#commitmentdiscountquantity) measured by time, it is important to differentiate the [*CommitmentDiscountUnit*](#commitmentdiscountunit) for each type of *commitment discount. In each scenario below, *commitment discounts* *without* *commitment discount flexibility* applied use "Hour" as the *CommitmentDiscountUnit*, and conversely commitment discounts *with* *commitment discount flexibility* applied use "Normalized Hour" as the *CommitmentDiscountUnit*.
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When mixing usage-based commitment discounts with and without *commitment discount flexibility* and [*CommitmentDiscountQuantity*](#commitmentdiscountquantity) measured by time, it is important to differentiate the [*CommitmentDiscountUnit*](#commitmentdiscountunit) for each type of *commitment discount. In each scenario below, *commitment discounts* *without* *commitment discount flexibility* applied use "Hour" as the *CommitmentDiscountUnit*, and conversely commitment discounts *with* *commitment discount flexibility* applied use "Normalized Hour" as the *CommitmentDiscountUnit*.
When mixing usage-based commitment discounts with and without *commitment discount flexibility* and [*CommitmentDiscountQuantity*](#commitmentdiscountquantity) measured by time, it is important to differentiate the [*CommitmentDiscountUnit*](#commitmentdiscountunit) for each type of *commitment discount*. In each scenario below, *commitment discounts* *without* *commitment discount flexibility* applied use "Hour" as the *CommitmentDiscountUnit*, and conversely commitment discounts *with* *commitment discount flexibility* applied use "Normalized Hour" as the *CommitmentDiscountUnit*.

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ljadvey commented Mar 8, 2025 •
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First pass for initial grammer and formatting looks good except 1 minor formatting item. Second later today (wife making me do stuff)

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@gparker-at-sf gparker-at-sf gparker-at-sf approved these changes

@flanakin flanakin flanakin approved these changes

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1.2 Agreed scope for release 1.2
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[Work_Item] Add Commitment Flexibility examples within the Appendix
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@cnharris10 @rileyjenk @jpradocueva @ljadvey @flanakin @shawnalpay @gparker-at-sf