Case Study: AWS Contract Negotiation for a Global Media Company
Challenge
A global media company with 27,000 employees and a presence in broadcasting, digital content, and streaming services engaged Redress Compliance to renegotiate its AWS agreement. AWS was the backbone of the company’s digital infrastructure, supporting video streaming, content delivery, and real-time analytics. However, the company faced several challenges with its existing agreement:
- Rising costs due to increased demand for video streaming and high-definition content delivery.
- Inefficient allocation of AWS resources across business units, leading to unnecessary expenses.
- Rigid contract terms that did not support the company’s dynamic content production and distribution needs.
- Lack of detailed visibility into resource utilization, creating opportunities for optimization.
The company sought expert assistance to restructure its AWS contract, reduce costs, and align the agreement with its rapid growth and innovation goals.
The Process
- Usage and Resource Analysis: • Conducted an in-depth review of AWS usage, focusing on video processing, content storage, and distribution services. • Identified underutilized EC2 instances and high-cost data transfer routes for streaming content. • Assessed the efficiency of AWS Elemental Media Services and other media-specific tools.
- Needs Assessment: • Collaborated with the content production, streaming, and IT teams to identify critical AWS services. • Highlighted opportunities to adopt cost-effective alternatives without compromising quality. • Evaluated seasonal and peak usage patterns to determine optimal scaling strategies.
- Benchmarking and Strategy Development: • Benchmarked AWS costs and terms against similar-sized media and entertainment companies. • Developed a negotiation strategy prioritizing discounts on high-usage services, such as data transfer and storage. • Proposed a hybrid cost-saving approach using Reserved Instances, Savings Plans, and Spot Instances for non-critical workloads.
- Negotiation and Agreement Redesign: • Engaged AWS account representatives with a data-backed proposal highlighting inefficiencies. • Secured deeper discounts on key services, including content delivery and analytics tools. • Negotiated a flexible contract for dynamic resource scaling during peak content launches.
- Governance and Implementation: • Established governance processes to monitor AWS usage and ensure ongoing cost optimization. • Delivered workshops for IT and content teams on optimizing AWS services and reducing unnecessary costs. • Implemented automated tools to track real-time usage and adjust resources dynamically.
Results
- Cost Savings: • Reduced annual AWS costs by 32%, achieving $6.7 million in savings over three years. • Eliminated $1.8 million in redundant services and overprovisioned resources.
- Improved Contract Flexibility: • Secured terms allowing for scaling resources during major content releases and high-traffic events. • Negotiated price protections for future growth and service expansions.
- Operational Enhancements: • Optimized resource usage across streaming, content delivery, and analytics functions. • Improved transparency and governance in cloud spend, enabling better decision-making.
Quote from the CTO:
“Redress Compliance’s expertise in AWS negotiations was instrumental in optimizing our cloud strategy. Their insights helped us save substantially while ensuring our infrastructure supports innovation and audience growth. Their support has been transformative.”
Key Results:
- Savings Achieved: $6.7 million over three years.
- Flexibility Secured: Scalable resources for dynamic content needs.
- Operational Efficiency: Streamlined usage and improved cost governance.
This case demonstrates Redress Compliance’s ability to deliver tailored AWS negotiation strategies for media companies, ensuring cost efficiency, operational alignment, and scalability for digital innovation.
