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Understanding 100% Credit Back Guarantee on unused commitments managed by nOps

nOps offers a Commitment Management Program designed to optimize AWS costs by leveraging Reserved Instances (RIs) and Savings Plans (SPs). This program not only automates the management of AWS commitments but also provides a 100% utilization guarantee, ensuring that customers are never financially penalized for underutilized commitments made by nOps.

Let’s better understand how the 100% Credit Back Guarantee on Unused Commitments work:

Scenario 1: Customer ABC – Changing or Reducing Workloads​

Customer ABC enrolls in the Commitment Management program, and nOps begins managing their Reserved Instances and Savings Plans. After a few months, the customer decides to change, reduce, or terminate workloads in their environment.

No Problem!! The nOps platform is designed to adapt. Customers can modify their resources at any time, without worrying about any underutilization of existing commitments on these resources. Once changes are detected, nOps AI automatically recalculates utilization and begins purchasing new commitments to match the new on-demand usage pattern.

Meanwhile, nOps works to offload any underutilized commitments from the customer’s AWS Organization. This process may take a few hours or several days/weeks, depending on various regions, instance types, and other infrastructure factors. However, as long as the customer is connected to nOps, they get a 100% credit back guarantee policy for any unused commitments nOps purchases and manages. nOps absorbs any and all underutilization costs of these commitments—NOT THE CUSTOMER.

For example:

  • Let’s assume, in any given month nOps saves the customer $1,000 through commitment management.
  • The customer pays 25% of total savings to nOps as a fee. In this case it becomes $250 for the month. (fee % differs from customer to customer)
  • But there were also $100 worth of unused commitments.

In this case, nOps automatically adjusts the unused commitments amount from its fee for the following month:

  • $250 (nOps fee) – $100 (underutilization) = $150 The Net Fee customer is billed = $150 instead of $250.

Scenario 2: Underutilization Exceeds nOps Fee​

Now in the above example, assume:

  • Customer ABC has $300 in unused commitments that are managed by nOps. (credits owed to Customer ABC)
  • The nOps fee for the month is $250.

What happens in this case is- No fee is billed to the customer for the current month, and the remaining $50 is carried forward as a credit toward future invoices. Therefore not only we waive off the full fee amount for the current month which is $250 but also calculate the remaining owed credits after full waiver of the nOps fee and carry the balance amount to next month in form of backlog credits.

In this case, the backlog credits calculation would be:

  • $250 (current month fee) – $300 (carried forward credit) = - $50

Summary​

  • nOps purchases commitments on your behalf and provides 100% credit back guarantee policy on all nOps managed commitments.
  • If nOps commitments are underutilized, you’re not responsible for the underutilized/unused commitment costs.
  • Unused value is deducted from future invoices, and any excess is carried forward in the form of Backlog Credits to the future months until it breaks even.
  • You gain the benefit of cost optimization without the risk.

This model gives customers full flexibility to scale workloads up or down, while still enjoying cost savings.