On Demand Session  |  Negotiating the Big 50

Negotiating with Snowflake

The clearest example we have of a negotiation where the contract is only half the job. A sixteen minute session on why the rate is the small lever, the capacity contract, how the field is compensated, the clauses that decide what happens to money you committed and did not spend, and where the leverage genuinely is.

15:47 minutes9 chaptersDaniel, Senior Advisor and Claire, Expert AnalystFree, no registration

About this session

Almost every customer starts a Snowflake negotiation at the price of a credit, and it is the smallest lever on the table. The bill is a function of how much compute runs and for how long; the rate is a multiplier on that. A customer who negotiates thirty percent off a rate and never touches consumption behaviour has done a fraction of the available work. On the estates we have looked at, genuine optimisation work removed twenty to forty percent of consumption without touching a single contract term, which is larger than most negotiated discounts and lasts the whole term rather than being won once.

That matters most for the order in which you do things. The size of your capacity commitment is derived from your current consumption, so a customer who commits at an unoptimised run rate and then improves efficiency has committed to spending money they no longer need to spend. It is one of the most common routes to a shortfall, and it happens to organisations who did exactly the right thing operationally.

The session also covers how the field is compensated on annual contract value, which is why the proposed commitment arrives built from your own roadmap with optimistic growth included, and the counter of committing against measured base consumption while putting growth into a pre agreed overage rate. Plus the five clauses that decide what happens to money you committed and did not spend, and why splitting the estate is more credible leverage than threatening to leave it.

Session agenda

Every line jumps the player to that point.

  • 0:00 Welcome, and what this session coversWhy the negotiation is not really about the price of a credit.
  • 1:11 Why the rate is the small leverThe cost owner and the cost creator are different people, and what actually moves the bill.
  • 4:02 The capacity contractWhat you sign, what is achievable, and the edition multiplier nobody revisits.
  • 6:32 How the field is paidYour own ambitions, priced and presented back to you as a plan.
  • 9:11 The clausesCarry forward, price protection, overage rate, termination and auto renewal.
  • 11:35 LeverageSplitting the estate beats threatening to leave it.
  • 13:43 TimingSix to nine months, because efficiency work is slow to show in the data.
  • 14:26 The numbersFour to hold on to.
  • 14:55 The bottom lineOptimise first, commit to the base, price the growth as overage.

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
  • 1:11Why the rate is the small lever
  • 4:02The capacity contract
  • 6:32How the field is paid
  • 9:11The clauses
  • 11:35Leverage
  • 13:43Timing
  • 14:26The numbers
  • 14:55The bottom line

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