You work for a Defense contracting company. The company develops software applications which perform intensive calculations in the area of Mechanical Engineering related to metals for ship building. You have a 3-year contract and decide to purchase reserved EC2 instances for a 3-year duration. You are informed that the particular program has been cancelled abruptly and negotiations have brought the contract to an amicable conclusion one year early. What can you do to stop incurring charges and save money on the EC2 instances

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06-08-2021
Business

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You work for a Defense contracting company. The company develops software applications which perform intensive calculations in the area of Mechanical Engineering related to metals for ship building. You have a 3-year contract and decide to purchase reserved EC2 instances for a 3-year duration. You are informed that the particular program has been cancelled abruptly and negotiations have brought the contract to an amicable conclusion one year early. What can you do to stop incurring charges and save money on the EC2 instances

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Munali Munali · Answer 1 · 2021-08-16T09:22:53-04:00

The defense contracting company is spending its money by purchase of EC2 instances. This reserved instance can be used for one to three years.

If the program is cancelled due to some reasons the company can let out the purchase instance to some other company on lease and earn annual rentals on it.

This will save its sunk cost and earn some money with spare reserved EC2 instance.

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