EngagementsIT services

Price CloudOps as a percentage of spend and size PaaS managed services

For cloud managed-services solutioning and pricing teams deciding when a percentage-of-spend model fits and how to staff PaaS run support.

Engagement type
Solo Pod
Experts
1 lead · 2 consulted
Hours
~35
Duration
3 weeks

What the client needed

A firm needed to understand the percentage-of-spend model in public cloud managed services — in which deal scenarios it is used, for which client sizes and sectors, and why it is preferred there — and the metrics, volumes, FTE productivity ratios and in-scope activities for managed PaaS services such as Azure Stream Analytics, AWS Kinesis and AWS Lambda.

The brief

The questions on the table

As the client wrote them, lightly shortened. Client and respondents are not named.

  1. Q1

    In which deal scenarios is the percentage-of-spend model used for public cloud managed services, and why is it preferred there?

  2. Q2

    What percentage ranges apply, and how do they vary by client size, sector and cloud spend?

  3. Q3

    What are the in-scope activities, typical volumes and FTE productivity ratios for managed PaaS services such as stream analytics, Kinesis and Lambda?

  4. Q4

    How do the two models combine in one contract?

The hours

What the work involved

  1. 01

    Model fit

    Where percentage of spend is used — small versus large customers, commercial versus public sector, large versus small cloud spend — with the reasons from the lead’s cloud and managed-services deals.

  2. 02

    Rate ranges

    Percentage bands and the adjustments for scope depth, with three anonymised examples.

  3. 03

    PaaS run model

    Activities, volumes, productivity ratios and tooling for managed stream-analytics, Kinesis and serverless estates, from the CloudOps lead who ran them.

  4. 04

    Cross-check

    A platform-engineering vice president from a bank reviewed the PaaS productivity ratios from the buyer side.

  5. 05

    Working session

    With the client’s cloud pricing team.

Deliverables

What the client received

  • Model-fit noteScenarios and reasons.
  • Rate-range tableWith examples.
  • PaaS run modelActivities, volumes, ratios.
  • One working sessionWith notes.

The terms

What an engagement like this costs

You buy hours in blocks and can change the expert at the end of any block, at no extra cost. Longer projects run in stages: pause after a block, pick up the next stage when you are ready.

Pricing in full →

Rate band
$65–$250 /hr
Senior specialists can be up to $500
Hour blocks
1 · 2 · 5 · 10 · 20 · 50 · custom
This engagement
Solo Pod · ~35 hours · 3 weeks

More in IT services

Pricing cloud managed services?

Describe what you need

For example: “We want to move our public cloud managed-services offer to a percentage-of-spend model and need to know where it works.”

We aim to come back with matched experts within 24 to 72 hours.