Navigating Cloud Credits
A CTO’s Guide to Reclaiming Costs After a Service Outage
Uptime Myth
In the digital era, the elusive promise of 99.9% uptime from cloud providers often seems more mythical than realistic, especially when unexpected exclusions come into play. Network access issues, infrastructure failures, and “force majeure” events like natural disasters are frequently omitted from these uptime calculations, leaving many CTOs to wonder about the actual reliability of their cloud services.
When reality bites, as it did during a recent nine-hour service disruption, the actual uptime can plummet to around 99%—a significant drop from the promised perfection. This deviation may result in a mere 25% credit on your monthly bill, hardly sufficient to cover the operational losses incurred during the downtime. The road to a full 100% credit is even steeper, requiring over 36 hours of total service blackout, an unlikely and disastrous scenario for any business. For more insights on managing cloud service expectations and SLA terms, reading through resources like Gartner’s research on cloud reliability can provide valuable industry benchmarks.
Claiming Credits: A Proactive Approach.
Securing these credits isn’t automatic; it demands vigilance and quick action. The process typically involves gathering detailed data on the outage’s duration, affected services, impact scope, and mitigation efforts—tasks requiring substantial IT resources. Moreover, most cloud providers set a narrow claim window, often closing by the end of the month following the outage, as outlined in detail in IBM’s guidelines on cloud service agreements.
Automating the tracking and claiming process can significantly ease this burden. Implementing tools that automatically monitor service levels and generate reports can streamline the claim process, ensuring you meet deadlines and maximize potential refunds. This strategy not only improves your chances of receiving due credits but also frees up your IT team to focus on more strategic initiatives.
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Is It Worth It?
For many CTOs, deciding whether to pursue these claims depends on the potential return. Minor outages might not warrant the administrative overhead required to file for credits. However, for significant disruptions, especially those impacting critical operations or customer-facing systems, seeking compensation is crucial. This calculation often involves comparing the administrative cost against potential credit, as well as considering the broader impact on customer trust and operational stability.
In the long run, the key is to establish a balanced approach that includes rigorous service monitoring, clear communication with your provider, and an efficient system for managing and submitting credit claims. As you navigate the complexities of cloud service agreements and SLA credits, remember that the goal is not just to recover costs, but also to reinforce the reliability and accountability of your cloud service providers, ensuring they align with your business needs and continuity plans.
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AI Makes The Complex Simple.
Monitoring cloud service providers with the intent of identifying outages, pinpoints the exact problem, and automatically submits tickets for credits recapture is now possible.
“Service Level Agreements are the backbone of cloud services, defining the metrics by which cloud performance is measured and ensuring that customers receive the level of service they expect.”
Satya Nadella
CEO of Microsoft
Cloud Credit Optimization
Cloud credit optimization is no longer a good idea, it’s a requirement.
Make your SLA work for you today
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