Cloud Enterprise Network:Overview of transit router savings plans

Use scenarios

Transit router savings plans are ideal for scenarios with flat traffic, flat peak bandwidth, and long-term subscriptions, as shown in the following figure. After you purchase a savings plan, data transfers are eligible for a relatively high discount before the savings plan expires. The savings plan can reduce data transfer fees within the commitment term.

Billing methods

When you purchase a savings plan, you can choose between 0% upfront payment and 100% upfront payment. 100% upfront payments support higher discounts than 0% upfront payments. For more information about the discounts, see Discount Details.

• 0% upfront payment: You do not need to pay for the savings plan. Bills are generated during each commitment term until the savings plan expires.

• 100% upfront payment: You need to pay off the savings plan. Data transfers are eligible for a discount until the savings plan expires.

Offset rules

Priorities

If discounts other than savings plans are also available for transit router data transfers, the larger discount is preferentially applied.

Offset rules

When you purchase a savings plan, you must specify a minimum spending commitment and the number of commitment terms. The amount of data transfer fee that can be reduced within each commitment term is based on the minimum spending commitment. The fee of the savings plan is based on the spending commitment and the number of commitment terms.

• Data transfer fee to be offset within each commitment term = Spending commitment/Discount of the savings plan

• Savings plan fee = Spending commitment × Number of commitment terms within the subscription duration

You can calculate the number of commitment terms within a subscription duration. For example, if the commitment term is 1 hour, the subscription duration is 365 days, and the number of commitment terms within the subscription duration is 8,760 (365 × 24).

Within each commitment term:

• If the savings plan is not applicable to data transfers, you are charged the minimum spending commitment when the commitment term ends.

• If the savings plan is applicable to data transfers, and the data transfer fee does not exceed the upper limit of the savings plan, you are charged the minimum spending commitment when the commitment term ends.

• If the savings plan is applicable to data transfers, and the data transfer fee exceeds the upper limit of the savings plan, you are charged the minimum spending commitment and a data transfer overage fee. Data transfer overages are billed based on the catalog prices.

• If you choose the 0% upfront payment, bills are generated for each commitment term and you are charged the minimum spending commitment until the savings plan expires, regardless of whether you have an overdue payment.

Examples

A company purchased a transit router savings plan, whose minimum spending commitment is USD 1, commitment term is 1 hour, and subscription duration of the savings plan is 365 days. The company chose the 100% upfront payment.

• Fee of the savings plan:

  Minimum spending commitment × Number of commitment terms within the subscription duration = USD 1 × 1 hour × 24 hours/day × 365 days = USD 8,760.

• Amount of data transfer fee to be offset by the savings plan during each commitment term:

  Minimum spending commitment/Discount of the savings plan = USD 1/0.612 = USD 1.63.

• Amount of data transfer to be offset by the savings plan during each commitment term:

  Minimum spending commitment/Discount of the savings plan/Unit price of data transfer = USD 1/0.612/USD 0.02 per GB = 81.70 GB.

  If the amount of data transfer does not exceed 81.70 GB, the fee of the 81.70 GB of data transfer can be offset by the savings plan. If the amount of data transfer exceeds 81.70 GB, the fee of the 81.70 GB of data transfer can be offset by the savings plan, and you are also charged for data transfer overages at the catalog prices.

Assume that the amount of data transfer is 0 GB, 60 GB, and 100 GB during 3 commitment terms. The following table describes the fees that the company is charged.

The preceding table shows that in scenarios with flat traffic, savings plans with a proper minimum spending commitment can greatly reduce bills.

Savings plan lifecycle

Calculate the minimum spending commitment

Before you purchase a savings plan, you need to calculate the minimum spending commitment based on your traffic volume. For more information, see Purchase and apply a savings plan.

From effective to expired

When you purchase a savings plan, you can specify that it takes effect immediately or at a specified time. After a savings plan takes effect, you are charged the minimum spending commitment during each commitment term until the savings plan expires. Savings plans automatically expire when the subscription duration ends.

From overdue payments to restoration

If you purchase a zero-upfront-payment savings plan, and the minimum spending commitment cannot be settled due to overdue payments, the savings plan is suspended. After the savings plan is suspended, it cannot be used to offset data transfer fees starting the next hour. After you complete the overdue payments, the savings plan is immediately restored and starts offsetting data transfer fees.

Unsubscription

You cannot unsubscribe from a savings plan by yourself. If you no longer use a savings plan, you can submit a ticket to request customer service.