why would a company make a minimum cloud spending commitment (say, Microsoft Azure)?

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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.

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Anonymous 0 Comments

/r/AZURE

Having a minimal commit changes your discount levels.

Basically you agree to pay a set amount minimum per year and in exchange Azure give you a discount on their services.

If you don’t spend at least the minimum you lose the benefits

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