Mike AustinFounder & CEO, Metrixdata 360 Inc. · Mike Austin | Helping enterprises take control of software costs through data, strategy, and relentless execution

Cloud Service Provider or Enterprise Agreement: Choosing the Right One for You

Name: Cloud Service Provider or Enterprise Agreement: Choosing the Right One for You
Uploaded: 2024-05-28T20:30:00+00:00
Duration: 56 s
Channel: Mike Austin
Description: A short video by Mike Austin comparing Cloud Service Provider (CSP) month-to-month SaaS licensing vs. an Enterprise Agreement (EA). The speaker…

28 May 2024 · 1 min

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A short video by Mike Austin comparing Cloud Service Provider (CSP) month-to-month SaaS licensing vs. an Enterprise Agreement (EA). The speaker highlights CSP’s flexibility to increase or decrease accounts monthly and contrasts it with an EA example where adding users mid-term defers payment until the annual anniversary, creating a lump-sum payment and different annual billing for the following year.

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The other thing is CSP is I'll call it a true sort of SaaS program in that it is month to month. I can increase my accounts in a month and or I can decrease my accounts in a month. So if I look at the increase side, there is a slight disadvantage here to the ea. So in an ea, and if I go back to that scenario where we were 1000 and then we went to 1100 in the EA, let's just say I put them all on month six, I would have paid I would have reserved 100 license or 100 users on month six and paid six times the monthly cost on my anniversary date. So I guess I basically got to defer that payment out until my anniversary date. And I just paid six times the monthly cost on the anniversary date. And then next year I paid for 1100 for the full year. Okay.