Saving Money with Commitments

Leading national healthcare staffing company, Barton Associates, needed to track its cloud costs down to the penny..

A (Strategic Blue) Commitment is a commitment to pay for a fixed quantity of particular Cloud Resources, every hour during a specified Delivery Term at a fixed price, or at an agreed percentage of the published on-demand price.  The details of the commitment are summarised in a Commitment Letter that contractually adjusts the default pricing agreed in the Cloud Purchase Agreement.

The difference between a Commitment and a Reserved Instance is that it is much more customisable.  Customers work with our Financial Solution Architects to optimally tailor any or all of the following to match their forecast usage and procurement needs:

Cloud Resources to be included 

Start Date for the Delivery Term (including dates in the future)

End Date for the Delivery Term

Payment terms – prepay, postpay, or a mixture

Currency of fixed price (to remove FX risk)

Our Commitment  Pricing Engine takes these variables and produces a Commitment Letter describing the terms of the Commitment, together with a Fixed Price or Percentage applicable.  We provide that the Fixed Price matches, or improves on, any equivalent direct from Vendor web pricing.

Commitments are described and agreed to using a Commitment Letter, such as the attached example.