30 March, 2022, 4:49 am

What are Cloud Spot Markets and why should you use them?

Do you know companies that buy Amazon AWS, Google GCP and Azure for 90% less than you do?

You may have heard of spot markets in the finance world, but do you know that similar markets are available in AWS, Azure and Google Cloud?

These cloud markets allow anyone to purchase exactly that same cloud capability at c.88%-92% less than list price. If you have ever bought a ticket on TicketMaster, you have used services running on the spot market.

So, Why do the Cloud Vendors do this?

Well like any data centre, there always needs to be enough spare unused capacity to allow for growth. For example, if a very large enterprise or government department decides to migrate 10,000 servers to the cloud, Amazon AWS, etc needs to be ready.

This means that at any one time there is c.20% capacity unused. 

To ensure that this capacity can at least pay for some of the cost to maintain it, the spot markets were created.

AWS have EC2 Spot Instances

Azure have Spot VMs

Google have Spot VMs

So What’s the Catch, Why Doesn’t Everyone Use Spot Instead of List Price Services?

It all boils down to what is mentioned above, at some point the capacity will be needed for new customers and if it’s being used by you, AWS, Azure etc will want it back. 

This is where the Kumoco magic comes into play, Kumoco has a cloud management platform that automatically detects that AWS has requested the service back and automatically buys new space at the current discounted spot price. The Virtual Machine (cloud server) is then automatically relocated for you. You will never know it’s happened. Other than that, you continue to pay “cents on the dollar” for your services.

So that’s the spot markets in the cloud and pretty much everyone can use it.

And… even if your organization decides that the spot markets are not suitable for your business, Kumoco Cloud Manager, ServiceNow Edition can help you make savings upto 40% on your cloud costs with fully automated recommendations that can be implemented at the click of a button.

Kumoco are cloud management experts providing ServiceNow customers with the world’s most comprehensive cloud management solution, powered by and built on the ServiceNow platform.

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