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Replace 'hybrid' with 'partial'
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cnharris10 committed Sep 19, 2024
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6 changes: 3 additions & 3 deletions specification/appendix/commitment_discounts.md
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Expand Up @@ -12,9 +12,9 @@ While customers are bound to the term of a commitment discount, cloud-service pr

* *Upfront* - The commitment discount is paid in full before the term begins.
* *Recurring* - The commitment discount is paid on a repeated basis, typically over each billing period of the term.
* *Hybrid* - Some of the commitment discount is paid before the term begins, and the rest is paid repeatedly over the term.
* *Partial* - Some of the commitment discount is paid before the term begins, and the rest is paid repeatedly over the term.

For example, if a customer buys a spend-based commitment discount for 1 year, with a $1.00 hourly commitment, and pays with the hybrid option, the commitment discount's payment consists of both:
For example, if a customer buys a spend-based commitment discount for 1 year, with a $1.00 hourly commitment, and pays with the partial option, the commitment discount's payment consists of both:

1. *Upfront* - $4,380 (`24 hours * 365 days * $1.00 * 0.5`)
2. *Recurring* - $182.50 (`24 hours * 365 days * $1.00 / 12 months`)
Expand Down Expand Up @@ -87,7 +87,7 @@ The commitment is billed across all 8,760 charge periods of the term with $1.00
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#### Scenario #3: Hybrid
#### Scenario #3: Partial

With a 50/50 split, half of the commitment is billed _once_ during the first charge period of the term for $4,380 (derived as `24 hours * 182.5 days * $1.00`), and the other half is billed across each charge period over the term, derived as (`$1.00 * 8,760 hours * 0.5`). Amortized costs incur half of the amount (i.e. $0.50) from the upfront purchase and the other half from the recurring purchase.

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