Open Stack

On Mon, Mar 3, 2014 at 10:01 AM, Zane Bitter <zbitter at redhat.com> wrote:
> On 03/03/14 12:32, Joe Gordon wrote:
>>>
>>> >- if you're reserving resources far before you'll need them, it'll be
>>> >cheaper
>>
>> Why? How does this save a provider money?
>
>
> If an operator has zero information about the level of future demand, they
> will have to spend a *lot* of money on excess capacity or risk running out.
> If an operator has perfect information about future demand, then they need
> spend no money on excess capacity. Everywhere in between, the amount of
> extra money they need to spend is a non-increasing function of the amount of
> information they have. QED.

Sure. if an operator has perfect information about future demand they
won't need any excess capacity. But assuming you know some future
demand, how do you figure out how much of the future demand you know?
But sure I can see this as a potential money saver, but unclear by how
much. The Amazon model for this is a reservation is at minimum a year,
I am not sure how useful short term reservations would be in
determining future demand.

>
> cheers,
> Zane.
>
>
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