Supplier price management


Use all possible levers to optimize supplier prices


Pay the best price for its use

Billing consolidation

The first thing to do, of course, is to consolidate the billing of the Cloud consumption of the different Business Units into a single account in order to better track the expenses and manage them centrally.

This also allows you to benefit from price reductions thanks to volume, as is the case for example for AWS Enterprise support costs, which go from 10% of the spend to 3% of the spend depending on whether you consume less than 150K per year or more than 1M.

Example of AWS Enterprise support costs versus expenses
Example of AWS Enterprise support costs versus expenses

Consumption commitments

Next, consolidated consumption must be planned so that annual spending commitments can be made that will result in rebates under supplier "Enterprise" programs.

At AWS, for example, this is the Enterprise Discount Programme, at Microsoft it is the Enterprise Agreement.

Capacity Reservation

And of course you need to reserve capacity for both compute and instances using services such as AWS Savings Plan or Compute Pre-Purchase at Azure. Huge savings can be made by combining the needs of several business units in terms of similar instances if they are booked for one year and, of course, even more for 3 years.

See also "2O3 - Reservation management".

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Overall spend optimization process

ID 3O1

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Network and flows optimization

ID 3O3