AI news

AWS reserved capacity tight through 2027, on-demand still open

In brief

According to Amazon CEO Andy Jassy, most of AWS's large pre-committed cloud capacity is already allocated through 2027, with much of 2028 taken too. In a podcast reported by Reuters on 23 October, he said AWS still keeps a buffer for on-demand use, EC2 and Bedrock. Analyst David Linthicum said everyday GPU allocation is not the same as those multi-year blocks being gone.

Source : InfoQ - « AWS Capacity Largely Sold Out Through 2027, With On Demand Headroom Reserved »

What it changes for an SME

For a company of 10 to 250 people, day-to-day use is not what Jassy described as already allocated: he said AWS still holds capacity for on-demand use, EC2 and Bedrock. The pressure is on large reserved blocks booked years ahead; according to InfoQ, rates for Capacity Blocks for ML rose by about 15 percent in every region in January. Some operators also report recent trouble getting ordinary on-demand instances, including from other major providers. Commentators warn against reserving extra cloud resources merely out of fear they might be needed.

What you can do

  • Ask your IT team or provider whether your AI tools run on Bedrock, on-demand EC2, or reserved capacity blocks.
  • Do not buy multi-year capacity only because headlines talk of a shortage.
  • Check whether your teams have already been refused on-demand instances in recent weeks.
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