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Organizations traditionally emphasize pricing to control costs when selecting vendors. The five pillars of the AWS Cloud Value Framework are cost savings (TCO), staff productivity, operational resilience, business agility, and sustainability. Why can’t we just focus on price? We have a limited budget.
Once the above steps are completed the procurement resource will have identified the type of procurement method, the associated risks and mitigation strategy, RFx scope and deliverables, required disclosures, evaluation criteria and pricing strategy. Here is a link to the Federal Government’s website explaining its procurement process.
Even more so now, seasoned professionals in the construction industry have seen budgets disrupted considerably by fluctuations in pricing and lead times that have shredded carefully drafted cost estimates and project schedules. This risk absorption is directly reflected in bid prices.
Myth 2: Cloud costs more Migrating to AWS can significantly reduce the total cost of ownership (TCO) by up to 66 percent for compute, storage, and networking. AWS specialized cloud-optimized chips enable high-performance at cost-effective prices.
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