So story time! We optimize AWS bills-and sometimes that includes negotiating @awscloud contracts on behalf of our customers. This is a deeply held secret unless you Google for "aws contract negotiation."
An @awscloud account manager for one of our customers rotated out onto a different account because it had been 20 minutes or whatever, and we randomly encountered them on a new customer six months later.
"Hey, it's great to be working with you folks again!" they gushed. "Oh hey, while I've got your attention, quick question. Do you know anyone who negotiates @awscloud contracts? I have a customer asking."
You probably know where this is going.

"Yes, we do. Us. We do this a lot. Including six months ago, with your previous customer. And you. Remember?"

"Wait, that was a negotiation?!"
It's an old-school way of thinking; that negotiations are inherently contentious.

Remember--when you're negotiating an @awscloud contract (or any cloud vendor), don't lose sight of the fact that you have to work with these folks after the deal is signed.
If handled correctly, the customer gets better terms on the things they *actually* care about, and AWS finds that the conversations move a LOT faster because we can avoid the usual pitfalls and rabbit holes.
"We want better SLAs on service X."

You won't get them. Nobody will get them. You can have your outside counsel spend six weeks arguing with their lawyers, or you can take my word for it. I'd suggest the latter.
"We get better discounts with higher commit levels. What's the correct commitment level so we don't either leave money on the table or overcommit?"

* @mike_julian fires up the spreadsheet @petecheslock built*
This is a key example. As engineers we think of SLAs very differently than attorneys do. They may as well be two separate terms.

Ask me no questions, I'll tell you no lies, but at least once I've gotten carried away on a pricing negotiation and triggered a price change globally.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Corey Quinn

Corey Quinn Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @QuinnyPig

5 Feb
So a thread I've been "meaning to write" for the past few years but somehow always found an excuse to avoid. No more!

My entire career (and life, really) have been shaped by ADHD. The key was finally emphasizing for things I'm good at, while avoiding the things that I'm bad at.
ADHD is a spectrum disorder. Different people have different expressions of it. This is how it affects me; I've never met someone else who had it affect them quite this way.
An analogy that stuck with me is "everyone has to hold 100 marbles at once, but they all have a bag and you don't." Medication gives you a bag with a hole in it. You still drop marbles from time to time, but it's so much better than not having one at all.
Read 21 tweets
4 Feb
The entire reason we didn’t take VC money for the Duckbill group is that we would be pushed to capture as much revenue as possible, as quickly as possible. And the customers lose in that scenario.
Seeking growth and scale at all costs creates situations for bad outcomes for customers, like one-size-fits-all algorithms and automation that doesn’t take into account the customer’s specific goals, architecture, constraints—and their own customers.
“You’re spending $150 million a year on @awscloud? Cool, we’ll knock hilarious amounts off of that for a flat fee that’s less than one engineer’s annual salary.”

VCs would demand a percentage pricing model, and then the whole thing goes to custard.
Read 15 tweets
3 Feb
I've been critical of the @FinOpsFdn for a while but apparently not so critical that they were too ashamed to release "The 2021 State of FinOps Report."

You may follow along with this thread via data.finops.org if it's still online by the time I get done.
First we--wait. *math math math* Did... did they just add together all of their respondents' numbers and not de-duplicate "folks who work at the same company?"

Aren't these people supposed to be good at a thing that requires exactly this?
I mean... get six respondents from a giant AWS customer like Netflix, CapitalOne, etc. and suddenly you can change the entire shape of the survey!
Read 46 tweets
3 Feb
Actual Amazonians can't say anything on the record obviously, but as the self-appointed head of @awscloud marketing I can.

Ask me anything about AWS and I'll come up with a halfway plausible answer.
Operational excellence and the tears of the damned.
Data transfer pricing at scale, makes networking people feel at home, more deterministic performance, and you can blame it when you want to go take a nap in the data center.
Read 21 tweets
3 Feb
What should we do tonight, Twitter?
Here we go.

1. New naming rule; words don't repeat in a name. Systems Manager Session Manager? IoT Things Graph? I'm looking at you.

2. Strongly consider the effectiveness of the current messaging to AWS partners of "yes we'll compete with you but don't worry because we're really really bad at anything above a certain point in the stack."
Read 11 tweets
2 Feb
And now the Amazon Q4 results. Hmm, net sales are up, operating income is flat, and "we're not a PowerPoint company" is increasingly sounding like an excuse.
Talking about a lot of Amazon stuff. I really wish they had a cloud-specific earnings call so I could ignore the rest.
Boasting about reInvent and how rapidly @awscloud innovates. 180 releases over the three week span because someone over there HATES me.
Read 17 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!