Base Scenario
- MegaMetroBiz spends between $15,000 and $20,000 a month on AWS Services
- CloudShear analysis indicates a minimum of $3000/monthly in cost reductions
- CloudShear and MegaMetroBiz arrange a 160 hr contract with extension to 320 option. Hourly Rate will be $50/hr -- resulting in $8000 for services rendered in the first month.
- Cloudsheer provides 4 weeks of work implementing $2000 in savings
- The next 4 months of current savings will be $8,000. MegaMetroBiz will have saved at least $24,000 annually and owes CloudShear $8000 (the originally contracted amount) with a current savings percentage of $0 (since 4 months savings - incurred cost) is zero.
- MegaMetroBiz and CloudShear need to decide whether to continue the engagement
Example 1
- CloudShear determines that it cannot save more than $2000/month in the next four weeks and therefore cannot meet the 200% guarantee
- MegaMetroBiz really likes the progress that CloudShear has done so far, and is willing to renegotiate to get permanent savings (and guidance)
- CloudShear is willing to continue, but not at current rate. At $75/hr, both companies choose to re-engage for another 4 weeks with no bonus available.
- 4 weeks later, the engagement completes. CloudShare sheared another $1500/month.
- 4 months at $3500/month would be $14,000. CloudShear will receive a total of $20,000 for hourly services and no bonus
- MegaMetroBiz will have saved at least $42000 annually gnoing forward for an investment of $20,000
.
Example 2
- CloudShear determines that it can shear another $3000 in the next four weeks.
- MegaMetroBiz agrees that additional savings would be great
- engagement is extended at same rates with bonus
- CloudShear successfully shears an additional $2500
- 4 months at $4500 is $18,000. CloudShear receives $16,000 in hourly services and a $2000 bonus for a total of $18,000
- MegaMetroBiz will have saved at least $54,000 annually going forward for an investment of $18,000
.
Example 3
CloudShear determines that it can shear another $3000 in the next four weeks.
MegaMetroBiz agrees that additional savings would be great
engagement is extended at same rates with bonus
CloudShear surprisingly shears an additional $3500
4 months at $5500 is $22,000. CloudShear receives $16,000 in hourly services and a $6000 bonus for a total of $22,000
MegaMetroBiz will have saved at least $66,000 annually going forward for $22,000
