This company signed an EDP agreement with AWS to save millions of dollars over the next three years. However, it risked paying for services it didn’t use if it failed to meet the value of its committed spend in services consumed. The company discovered a way to burn down some of its committed spend through Nerdly on AWS Marketplace without taking on any additional expenses.
The Challenge
When our client signed an EDP agreement with AWS, they were excited about the potential for savings but knew they’d have to get creative to meet their committed spend. They will spend a total of $46 million over a three-year term—$13 million in the first year, $15 million in the second, and $18 million in the third.
Reaching their committed spend is a top priority. Nine percent is a common discount rate for EDP plans, with better rates available as companies increase their AWS committed spend. Even assuming a low discount rate, our client stands to save millions of dollars on cloud computing in the first year of their plan. However, failure to consume the full value of their committed spend in AWS services would result in effectively
paying for services they don’t use.
The company knew purchases made through AWS Marketplace are eligible for EDP spend (up to 25 percent of total committed spend). Learning they could also reallocate some of their current expenses to be billed through Marketplace sparked an idea that helps burn down some of their committed spend and get
closer to savings on AWS services.
The Solution
Our client discovered NerdRabbit after meeting a NerdRabbit account executive at a business networking event. The account executive told the client about Nerdly—the talent marketplace platform from NerdRabbit for hiring cloud, IT, and marketing professionals on demand—and explained how companies can burn down EDP committed spend when they use Nerdly on AWS Marketplace.
The company doesn’t have any immediate hiring needs, but they do have an existing relationship with a nearshore partner. Instead of continuing to pay the nearshore partner the same way they would pay any other vendor, the company directed them to sign up for Nerdly. Their partner keeps 100 percent of their earnings, and the company increased the value of AWS services consumed without engaging additional talent or incurring new expenses.
The Results
- $1 million projected burndown towards EDP commitment by billing through Nerdly on AWS Marketplace
- Instant access to 2,000+ pre-vetted, US-based professionals in cloud, IT, and marketing through Nerdly
- No new spending for the company