Discover how CloudZero helps engineering and finance get on the same team — and unlock cloud cost intelligence to power cloud profitability

Learn more Arrow Arrow

Explore CloudZero

Discover the power of cloud cost intelligence

Why Change Icon
Why Change?

Give your team a better cost platform

Services Icon

Give engineering a cloud cost coach

About Icon

Learn more about CloudZero and who we are

Pricing Icon

Learn more about CloudZero's pricing

Tour Icon

Take a customized tour of CloudZero


Explore CloudZero by feature

Cost Anomaly Detection Icon
Cost Anomaly Detection

Build fast with cost guardrails

Budgeting Icon
Budgeting And Forecasting

Drive accountability and stay on budget

Discount Dashboard Icon
Discount Optimization Dashboard

Manage all your discounts in one place

Dimensions Icon
CloudZero Dimensions

Organize spend to match your business

By Use Case

Cost Per Customer
Cost Per Customer Analysis

Understand your cloud unit economics and measure cost per customer

Kubernetes Cost Analysis
Kubernetes Cost Analysis

Discover and monitor your real Kubernetes and container costs

Unit Cost Analysis
Unit Cost Analysis

Measure and monitor the unit metrics that matter most to your business

Cost Allocation
Tagging And Cost Allocation

Allocate cost and gain cost visibility even if your tagging isn’t perfect

SaaS COGS Measurement

Identify and measure your software COGS

Engineering Cost Awareness
Engineering Cost Awareness

Decentralize cost decisions to your engineering teams

Cloud Cost Optimization
Cloud Cost Optimization

Automatically identify wasted spend, then proactively build cost-effective infrastructure

Migration Cost Monitoring
Migration Cost Monitoring

Monitor your AWS cost and track progress in real-time as you move to the cloud

By Role

All Your Cloud Spend, In One View

CloudZero ingests data from AWS, GCP, Azure, Snowflake, Kubernetes, and more

View all cost sources Arrow Arrow


Discover the best cloud cost intelligence resources

Resources Icon Resources

Browse helpful webinars, ebooks, and other useful resources

Blog Icon Blog

Discover the best cloud cost intelligence content

Case Study Icon Case Studies

Learn how we’ve helped happy customers like SeatGeek, Drift, Remitly, and more

Events Icon Events

Check out our best upcoming and past events

Cost Assessment Icon Free Cloud Cost Assessment

Gauge the health and maturity level of your cost management and optimization efforts


CloudZero Advisor

Compare pricing and get advice on AWS services including EC2, RDS, ElastiCache, and more

Learn more Arrow Arrow

How SeatGeek Measures Cost Per Customer

Discover how SeatGeek decoded its AWS bill and measures cost per customer

Read customer story orangearrow arrow-right

How Skyscanner Creates A Cost-Aware Culture

Learn how Skyscanner decentralized cloud cost to their engineering teams

Read customer story orangearrow arrow-right

How Malwarebytes Measures Cost Per Customer

Learn how Malwarebytes measures cloud cost per product

Read customer story orangearrow arrow-right

How Remitly Shifts Cloud Costs Left

Learn how Remitly built an engineering culture of cost autonomy

Read customer story orangearrow arrow-right

How Ninjacat Combines AWS And Snowflake Spend

Discover how Ninjacat uses cloud cost intelligence to inform business decisions

Read customer story orangearrow arrow-right

How Smartbear Uses Cloud Cost To Inform GTM Strategies

Learn Smartbear optimized engineering use and inform go-to-market strategies

Read customer story orangearrow arrow-right
arrow-left arrow-right
View all customer stories

Why Unit Economics Helps You Commit To Discounting Programs

Understanding your company’s unit economics will help you take advantage of enterprise discount programs. Here's how.

Is your current cloud cost tool giving you the cost intelligence you need?  Most tools are manual, clunky, and inexact. Discover how CloudZero takes a new  approach to organizing your cloud spend.Click here to learn more.

Is your enterprise still paying the sticker price for cloud services?

If so, you’re probably leaving a significant amount of money on the table.

Once your company surpasses the level of “large business” and begins growing into a full-fledged enterprise, it likely qualifies for enterprise discounts offered by each of the major cloud providers. The most well-known of these would be the Enterprise Discount Program (EDP) offered by Amazon Web Services (AWS).

However, taking advantage of these discounts isn’t as simple as signing up and watching the savings accumulate.

To qualify for the AWS EDP, a business must commit to spending a certain amount of money over a specific period of time. That threshold is deliberately set high to target enterprise customers.

Smaller companies that usually spend a couple hundred thousand dollars per year will not qualify, and even if they did, they would pay more than necessary for the amount of resources they use. The EDP offers tiered discounts, so big spenders will achieve more of a discount than companies that just barely made the cutoff.

The tricky part is knowing where your business falls on that spectrum of spending.

Perhaps some months you spend more than others, and over the course of a year you have spikes of heavy spending followed by weeks or months without much going on. Or, maybe your business is on the verge of growing or shrinking, and you don’t feel comfortable predicting how much you’ll spend over the next year.

Unless you know with some confidence how much you’ll spend in the near future, it’s best to avoid a hefty commitment.

The last thing you’d want to do is commit to a level of spending far beyond what your company will actually achieve in reality; any discount you earn from that commitment will likely not outweigh the fact that you’ve dramatically overcommitted to a set price.

This is where understanding your company’s unit economics becomes crucial.

How Understanding Unit Economics Allows You To Commit To Discount Programs With Confidence

How can you learn to accurately predict future spending?

Knowing exactly how much you have spent on each product, service, feature, customer, service region, and other areas means you have the power to forecast what would happen if circumstances changed.

If you’re launching a new feature, for example, you can simply look back at how much it cost to launch previous features to get a fairly good idea of what you’ll spend this time around.

Or, if you plan to focus more intensely on a particular customer demographic, you can estimate what it costs to support that specific type of customer, as well as the costs you might save by reducing services to more expensive demographics.

From there, building a handful of “what if” predictive models can tell you what your spending will likely be if you move forward with your current plans or if some other variable changes.

When you can predict future spending with unit economics, you can confidently commit to discount programs

Using unit economics, you can examine your patterns of spending to find the most stable parts.

Perhaps your spending on network resources fluctuates wildly with customer usage, but your AI customer service chatbot usage stays within a relatively narrow range.

These areas of stability are what you can count on when you’re committing to usage thresholds for enterprise discount programs. The other variables add layers on top, but your core spend is a comfortable minimum that tells you which discount tier you might want to aim for.

For best results, model out best- and worst-case scenarios to get an idea of the likely range your spending might fall into over the following year, and err on the side of the projection that seems most likely.

What happens if you under- or overestimate your expected spending?

If you’ve underestimated how much you can commit — for example, you committed to spending $30 million over three years, but you’ve blown past $40 million by the second year — you can likely renegotiate your terms for a more favorable rate.

Cloud providers will never turn down your money, so overspending grants you some wiggle room.

Falling short, on the other hand, is a bit trickier to handle. One solution is to purchase a large number of reserved instances in advance. This boosts your spending now, so you can technically fulfill your commitment, but it should still translate into some savings in the long run.

If you find yourself in this situation, it might feel like you’re playing a high-stakes game with your company’s finances hanging in the balance.

Making large moves such as buying up reserved instances on the heels of realizing you’ve already dramatically miscalculated your spend level can be dangerous unless you take the opportunity to improve your understanding of your cloud spending habits.

CloudZero Gives You Visibility Into Your Spending — And Helps When You Run Into Trouble

In your pursuit of clear, granular unit economics, you’ll need a cost intelligence platform that can break down where every dollar is going. The Dimensions dashboard by CloudZero gives you a full account of every cloud-related cost and makes it easy to identify trends.

If you’re having trouble navigating the murky waters of enterprise discount plans, the data helps, but there’s no substitute for personalized, expert advice.

Our team members are happy to work with you to negotiate great EDP rates, find safe commitment levels, and solve any over- or under-commitment problems as they may occur.

Schedule a demo today to see CloudZero cloud cost intelligence platform for yourself!


Join thousands of engineers who already receive the best AWS and cloud cost intelligence content.