My Cloud Selling Secret: Cloud Commits/PPAs

rweidner

You have the best chance of maximizing the benefits/incentives a Cloud is willing to give to you in a "commit/ppa" (which is a commitment to spend with them over usually 3-5 years) if the growth is higher than your current cloud spend run rate.

Hence, a good strategy is to sign the "commit/ppa" around the same time you land a large deal as the cloud consumption won't be included in your current cloud spend run rate.

This will allow you to sign a larger commit/ppa while not increasing the risk to meet those commitments (as you'll have signed customer agreements) thus maximizing the Cloud incentives that are included in a commit/ppa such as discounts, customer migration credits, marketing funds, etc.