> Most companies running on AWS/GCP/Azure are paying nowhere near the advertised costs
This is true, but it misses a big motivation behind it. It costs more to have enough capacity to support on-demand use since it has to sit idle, waiting for a customer. Part of the discount you get is you give AGA certainty in demand. They don't need to hold as many machines in the on-demand pool, and it makes long-term planning easier. You'll also find that those on-demand prices don't actually scale. At some point, you'll have to talk to a rep and commit to more hardware and a discount because you're just too big.
Yup. In B2B in particular, everything is negotiable. The sums of money are large so there's a lot of wiggle room. There's also a lot more strategy involved. It could be the end of the quarter and the someone needs sale or they just want to improve the relationship for the next deal. It can also be as simple as the competition is against companies that hate each other and they'll happily eat a worse deal to get it done to spite the other. One of the fun parts of the business side is coming up with creative ways to get a deal done. Not dissimilar from coming up with creative ways to solve engineering problems.
dehrmann|2 years ago
This is true, but it misses a big motivation behind it. It costs more to have enough capacity to support on-demand use since it has to sit idle, waiting for a customer. Part of the discount you get is you give AGA certainty in demand. They don't need to hold as many machines in the on-demand pool, and it makes long-term planning easier. You'll also find that those on-demand prices don't actually scale. At some point, you'll have to talk to a rep and commit to more hardware and a discount because you're just too big.
matwood|2 years ago