# Cloud Commitment Fundamentals for Sales

### Module 1: The Cloud Spending Problem

**Learning objective:** Understand why cloud commitments exist and why they create risk for customers.

Key concepts:

* Cloud spend is primarily variable (on-demand) — you pay full price for every hour.
* Cloud providers offer discounts in exchange for commitments: Reserved Instances (AWS/Azure), Savings Plans (AWS/Azure), Committed Use Discounts (GCP).
* Discounts range from 20–70% depending on commitment length and type.
* The tradeoff: longer commitment = bigger discount, but if workloads change, you're stuck paying for unused capacity.
* Many companies under-commit and leave significant savings on the table because the risk isn't worth it to them.

{% hint style="info" %}
Your customer wants to save money on cloud. The cloud providers will give them big discounts — but only if they lock in. If their business changes and they stop using those resources, they're still on the hook. So most companies play it safe, commit less than they should, and overpay.
{% endhint %}

FinOps framing: Rate optimization (what you pay per unit) vs. usage optimization (how much you use). Commitments are a rate optimization tool — no engineering required, no infrastructure changes.

***

### Module 2: Pattern Recognition — Spotting the Opportunity

**Learning objective:** Identify signals in customer conversations that indicate an Archera opportunity.

Signals to listen for:

**Flexibility concerns:**

* "We're not sure our workloads will be stable enough to justify a 1-year commitment"
* "We bought reservations last year and ended up underutilizing them"
* "We're going through a migration / replatforming and can't commit right now"
* "We're a startup — our infrastructure is changing too fast to lock in"

**Cost pressure signals:**

* "We need to reduce cloud spend but we can't start a big infrastructure project"
* "Finance is asking us to optimize cloud costs without touching engineering"
* "Our cloud credits are running out and we need to extend runway"
* "We want to move more cloud spend from OpEx to CapEx"

**FinOps maturity signals:**

* "We're standing up a FinOps practice"
* "We're getting pressure to improve our cloud Effective Savings Rate"
* "We need to show more discount coverage in our next QBR"

**What this is NOT:**

* Not a right-sizing conversation (that's usage optimization — different product category)
* Not a reselling conversation — Archera doesn't resell cloud
* Not relevant if customer already has heavy PPA/EDP commitments with shortfall risk

When you hear these signals, introduce the concept and bring in your SA or Archera. You don't need to explain the mechanics — open the door.

***

### Module 3: The Solution — Insured Commitments

**Learning objective:** Explain Archera's value proposition simply and confidently.

The insurance analogy (primary explainer):

"Think of it like car insurance. You're required to have it, but you hope you never need it. Archera works the same way for cloud commitments — you get all the savings of a long-term commitment, but if your usage changes and you don't need it anymore, Archera buys it back or refunds you."

Two products, two scenarios:

| Scenario                |                               Customer Situation | Archera Solution                                                  |
| ----------------------- | -----------------------------------------------: | ----------------------------------------------------------------- |
| Short-term uncertainty  |              Unsure if workload lasts 12+ months | 30-day Insured Commitment — only 30 days locked in, then flexible |
| Medium-term uncertainty | Unsure about 3-year, but comfortable with 1-year | 1-year Insured Commitment — better savings than native 1-year     |

Proof points (pick one based on context):

* **Startup/growth**: Read AI — $120K/month in savings, fully automated, no engineering needed, 3 days to savings from deploy to cold hard cash
* **Optimization at scale**: PubNub — pushed commitment coverage from 95% → 98%, 5% gross margin improvement with zero engineering effort
* **Migration/replatforming**: Wayfair — used custom-term commitments to maintain savings through a major replatforming

**What to emphasize:**

{% hint style="success" %}

<p align="center"><strong>Free to start — platform costs nothing, premium only charged on Insured Commitments</strong></p>

<p align="center"><strong>No infrastructure access, no billing takeover, 5-minute setup</strong></p>

<p align="center"><strong>Works on AWS, Azure, and GCP</strong></p>
{% endhint %}

***

### Module 4: Starting the Conversation

Simple opener:

"We work with a platform called Archera that lets companies get savings from cloud commitments without the lock-in risk. It's basically a moneyback guarantee on your reservations. Would it be worth a quick conversation?"

When to loop in your SA: As soon as the customer wants to understand how it works mechanically or wants to see it in their environment.

What Archera is NOT (set expectations):

* Not a right-sizing or infrastructure optimization tool
* Not a reseller — customer keeps their cloud accounts and billing
* Not a managed service — customer retains full control

### Ready for the quiz?

{% embed url="<https://forms.gle/fk8vg2T6k1CweDQ17>" %}