MobileForce's CLIPPER Reservation Fee Justifier

Cloud Service Providers (CSPs) such as Amazon Web Services offer Reserved Instances as an alternative to pay as you go pricing. They do however charge a reservation fee per instance. If you have a lot of instances to be reserved this fee could get high and crimp your budget. How do you even know if the reservation fee is a fair amount? We do the heavy lifting for you. We map out your monthly instances usage and subsequent fee payouts over 3 years, estimate the volatility of your instances usage, and then calculate whether you are overpaying your upfront reservation fee. CLIPPERTM Analyzer uses Black Scholes Option Pricing Calculator to calculate MobileForce defined fair value for upfront reservation fees. The picture below shows one such calculation as an example. 
CLIPPER Reserved Capacity Fee Justifier


Chart 1: CLIPPER Chart that pictures CSP published reservation fees deviation from CLIPPER calculated fair value on a per instance basis



Chart 2: CLIPPER Chart that pictures CSP published reservation fees deviation from CLIPPER calculated fair value on a total dollar basis