Strategic Blue is a unique cloud reseller, and I’m not just writing this because I work at Strategic Blue. Strategic Blue has a very unique value proposition that is completely focused on cloud financial operations (FinOps). The majority of cloud resellers focus on the technical aspects of cloud computing, whereas Strategic Blue is amongst the few that do its best to avoid the technical.
One of the best ways to save money on the cloud is through the likes of Reserved Instances and Saving Plans, commonly referred to as ‘commitments’. Commitments provide a significant discount on your cloud resources, as they enable the cloud vendors to capacity plan more effectively. This is where a reseller like Strategic Blue can add the most value.
We don’t just offer customers commitments in the same way as the cloud vendors, instead, we provide commitments that are much more flexible and at a deeper discount than available directly to the cloud vendors.
As an account manager, I deal with implementing commitments for our customers on a daily basis. One of the most common questions I get asked by new prospects or existing customers is how Strategic Blue is able to provide such flexibility, as well as deeper discounts than the cloud vendors. This leads us to this blog, which I hope helps bring it to life.
How do our cloud discounts work?
Commitments are where a customer will commit to either an amount of cloud usage or spend for a fixed period of time. In general, there are two rules when it comes to making commitments: the longer you commit for, the deeper the discount and the more you pay upfront the deeper the discount. To learn more about why the cloud is priced the way that it is, click here.
When Strategic Blue provides its unique, and deeper discounts to customers, we’re simply following the two rules I’ve outlined above. When it comes to commitments, we buy differently to the way we sell to the customer, allowing us to make the deal as attractive as possible. For example, a customer may want to make a 1-year commitment on a number of their instances. Strategic Blue will perhaps purchase a 3-year commitment at the back end, gaining the deeper discount rates, and then sharing some of that discount with the customer who has signed up for the 1-year deal with Strategic Blue.
By doing this, Strategic Blue takes risks in order to provide deeper discounts to our customers. Similarly, if a customer wanted to make a 3-year commitment paying nothing upfront (NUF), Strategic Blue may decide to pay all upfront (AUF) to gain an additional discount to share with the customer. Strategic Blue takes the risk of committing all upfront, whilst enabling the customer to pay in the way that suits them. This provides the customer with greater flexibility, as well as benefiting from the additional savings gained.
As a cloud FinOps expert, it’s Strategic Blue’s job, particularly that of our pricing and portfolio teams, to manage the risk that we take. The key way we mitigate this risk is by treating our customers as a portfolio, allowing us to offset the residual risk, and enabling us to continue providing deeper discounts across our customer base. We treat these portfolios as markets in which we can move commitments accordingly to provide discounts to the customers.
Would you like additional cloud savings?
Through buying and selling in a different way, Strategic Blue is able to provide discounts to customers that would otherwise not be available. These additional discounts aren’t huge, normally a couple of percent, but as we move into post-pandemic times, every discount can play a really important role.
If you’re interested in learning more about how we provide these discounts or want to engage with Strategic Blue to make the most out of our portfolio management and cloud FinOps expertise, please get in touch and we’d be more than happy to provide a free FinOps review.