cover of episode Understanding & Managing Committed Cloud Spend

Understanding & Managing Committed Cloud Spend

2022/2/9
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The Cloudcast

Shownotes Transcript

Tim Banks (@elchefe, Principal Cloud Economist @duckbillgroup) talks about how public cloud providers are offering committed spend programs, and ways to best use their programs to manage cloud spending. 

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**Topic 1 - **Welcome to the show. You’ve got a very interesting background of hands-on technical and being on the business side of things. Tell us a little bit about your background and what you focus on at Duckbill Group. 

**Topic 2 - **Let’s start by talking about this trend of long-term cloud contracts. Why are we seeing more and more announced, and who does it seem to benefit more (cloud provider or customer)?

**Topic 2a - **How do companies typically size these deals? Is it some percentage of current spend forecasted forward, or some aspirational goal, or something else? 

**Topic 3 - **When a company signs up for one of these long-term committed spend contracts, what are the mechanics of the contract? Is it just “all-you-can-eat” technology, or do they tend to include additional capabilities/services, etc?

**Topic 4 - **What have you found to be the behavior of companies that sign these contracts? Does it lead to more projects getting created, or more experimentation, or any other unintended consequences?

**Topic 5 - **At what point do companies start re-evaluating the contracts? What happens if they find themselves way below expected spending expectations? ** **

**Topic 6 - **Have you seen any new behaviors from the cloud providers once they sign a contract, whereas one group (or service) is pushing hard to capture a bigger portion of the contract? 

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