On Demand Session  |  Negotiating the Big 50

Negotiating with Datadog

An excellent product with a pricing model that punishes organisations who do not watch it. A fifteen minute session on where the meters are, the three drivers behind almost all bill shock, and the five structural asks that are worth more than several points of discount.

14:41 minutes9 chaptersDaniel, Senior Advisor and Claire, Expert AnalystFree, no registration

About this session

Customers tell us more often about Datadog than any other vendor that they do not understand their own bill, which is a remarkable thing to hear about software you chose. It is not a failing of the finance team. There are many products, each metered differently, and consumption is generated by engineering decisions that are never framed as purchasing decisions. The recurring pattern is an organisation that starts with a modest proof of concept and several years later carries a seven figure annual commitment with no clear account of how it happened.

Almost all of the surprise comes from three drivers: container cardinality, where every unique tag combination creates a billed series and a useful tag added by a well intentioned engineer multiplies the count; log retention, chosen once and generously on the assumption that keeping more is safer; and application monitoring unit drift, where normal modernisation raises your billable unit count without anybody deciding to buy more. All three are sound engineering decisions with unpriced commercial consequences, which is why the answer is showback rather than restriction.

The most valuable part of the session is the five structural asks, none of which is a discount. A pooled commitment drawn against any product rather than separate per product pools. A negotiated overage rate, because the standard fifty percent premium above your annual rate can cost you more than the discount saved you. An ingest band lock on logs. Container peak smoothing against a rolling average rather than the daily peak. And consumption reporting in a form finance can read.

Session agenda

Every line jumps the player to that point.

  • 0:00 Welcome, and what this session coversWhy customers do not understand a bill for software they chose.
  • 1:34 Where the meters arePer host, per volume, per unit, and which commitments are separate pools.
  • 3:47 The three bill shock driversContainer cardinality, log retention and unit drift.
  • 6:15 What is achievableThe bands, and the fifty percent overage twist.
  • 7:37 The mechanics that matterFive asks, none of them a discount.
  • 10:11 LeverageMove one product line, not the platform.
  • 12:28 TimingSix months, and the behaviour change is the point.
  • 13:15 The numbersFour to hold on to.
  • 13:48 The bottom lineAttribution, so cost is visible. Structure, so a wrong forecast is survivable.

The model. Redress Compliance works on contingency. You negotiate with the vendor first. When you have gotten everything you can get, bring the deal to Redress and we take 25 percent of what we save you beyond your best number. Nothing saved, nothing paid. Talk to us.

Chapters

  • 0:00Welcome, and what this session covers
  • 1:34Where the meters are
  • 3:47The three bill shock drivers
  • 6:15What is achievable
  • 7:37The mechanics that matter
  • 10:11Leverage
  • 12:28Timing
  • 13:15The numbers
  • 13:48The bottom line

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