I find everything about this product confusing. What value does it provide? Seems you need to be an IT Director to understand it. What’s the relationship between pricing and value? Why is it advantageous to a company to make a minimum commitment? What are the risks in making such a commitment? And how do you mitigate that?
All materials I read on the subject, require a level of familiarity with IT management that I don’t have. Please ELI5! Hi hi.
In: 26
Company: “We want to move to a cloud infrastructure. We will spend up to one million dollars on this initiative”
Microsoft: “Great, we usually charge $250,000 a year for the level of cloud infrastructure you need, but I’ll tell you what, if you sign a contract committing to spending one million dollars with us, we will knock the price down to $200,000 a year and you effectively get a “free” year. What do you say?”
Company: “Sounds good to me!”
The advantage here is the company gets a discounted rate, and Microsoft gets to book a million in garaunteed revenue
instead of risking that the company could spend $250k for one year then change it’s mind and leave for AWS or someone else.
Latest Answers