What's inside
- A table of the three rates: what each is, when to use it for cloud, a typical range and what to watch for.
- A quick decision guide matching four situations to a rate, from a Reserved Instance on a stable workload to mandatory compliance spend.
- A worked NPV example for a 3-year Reserved Instance, calculated at 8%, 13% and 18%, with the formula shown.
- A sensitivity table of the break-even annual saving at eight discount rates from 6% to 25%.
- Five common mistakes, including mixing nominal and real rates and treating a vendor's savings figure as the NPV.
Format: PDF (3 pages).
How to use it
Bring it to a cloud commitment decision to agree the discount rate with finance before the NPV is argued.
Get the reference guide
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