Negotiating Cloud Infrastructure Agreements

While the scalability, flexibility and efficiency of cloud infrastructure yield undeniable benefits, there are some rather large pitfalls that must be avoided with Cloud Agreements. The complexity of dynamic consumption, broad range of providers’ features and its workload applicability, are challenges to recognize early on to capitalize on your cloud investments and avoid value leakage along the way.

Generally, any and all of the scenarios below are encountered by our corporate clients during their cloud lifecycle:

  • Early stage:  You are at the start of your cloud adoption and unsure if an enterprise (or ‘ private pricing’) agreement is the right step. How much should I commit in terms of cloud spend ? For how many years? Should I go direct to a provider or use a reseller?
  • Middle stage:  You already have an enterprise agreement, and your team has built advanced knowledge of cloud technologies. You plan now to embark on a large cloud migration with complex and critical applications (e.g., database, mainframe). While you are satisfied with the current provider, you sense It may be time to explore other alternatives, but unsure if a multi-cloud environment is the right approach. Similarly, you are experiencing cloud spend that far outpaces your original projections and wonder if there are viable options to address the mismatch.
  • Advanced stage:  You have substantial spend in cloud (ARR>$10M) with a multi-year enterprise agreement and most of your workloads are already in the cloud. You are also at an inflection point, in the process of adopting Kubernetes and expanding your usage of data analytics with SaaS such as Databricks or Snowflake. With such a shift in spend and adoption, you wonder if the current supplier is the right one for the future. Lastly, you are also worried about potential lock in the upcoming agreement renewal.

These are but a few of the many scenarios our Clients must manage to stay ahead of their business objectives.

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