SDDC VMware Cloud on AWS

VMware Cloud on AWS: When Should I Use On-Demand VS Reserved Instances

When deploying a software-defined data center in VMware Cloud on AWS, customers can choose a consumption model that fits their business. In this blog post, we break down the benefits of the hourly, one-year and three-year payment options.

When deploying a Software-Defined Data Center (SDDC) in VMware Cloud on AWS, customers have the option of paying hourly (on-demand), 1-year subscriptions, and 3-year subscriptions. Each form has its benefits.

Hourly On-Demand

Hourly On-Demand is by far the most flexible consumption model. If you decide you want to spin up a new SDDC for just a few hours, or maybe even for a few weeks or months, this consumption model fits perfectly in-line with the type of deployment that may be temporary. At the same time, on-demand is the highest cost-per-hour or cost-per-month out of the three options. Just as AWS and others give incentives to customers for reserving resources for longer periods of time, VMware Cloud on AWS does the same. To run an SDDC on hourly hosts long-term will generally not be the most efficient way to finance your cloud environment, which leads us to the 1-Year Subscription.

1-Year Subscription

This subscription allows customers to purchase hosts for one year at a 30% discount off of the hourly rate. keep in mind that you CAN mix and match the pricing models. Since this is on a per-host basis, you can purchase, for example, 3x 1-year Subscriptions and if your environment needs to expand for a few months (such as customers who work in retail and have to scale up between October and December), the additional expansion host could be at the hourly on-demand rate.

3-Year Subscription

Many of our customers jump right to the 3-Year Subscription as this gives them the greatest discount on the service. The 3-Year Subscriptions save ~50% off of the on-demand pricing. When you know that you will be using your minimum sized SDDC longer term (more than one year), this pricing is the most economical.

Mixing consumption models

As mentioned earlier, customers can mix and match consumption models to meet the needs of their businesses. As environments continue to grow, some customers may find it more economical to keep the additional hosts at an on-demand model until they have utilized a certain percentage of that host’s resources. On the other hand, as customers are moving large quantities of VMs to the cloud, they will reserve all of their hosts with a 3-year subscription to save the most money.

At the end of the day, VMware is consistently providing choice to the customers. Not only in how and where they run their workloads, but also the method in which they purchase or subscribe to the offerings. For more information on VMware Cloud on AWS pricing and host options, head on over to