Unit Economics Development and Business Value Insight

**Overview: **

Empowers enterprise organizations to develop unit metrics by aligning technology spend (public cloud, SaaS, AI, Private Cloud) with business outcomes such as customer profitability, product margin, or segment performance.

The result is immediate clarity for pricing / portfolio mix, accelerates strategic decisions, and provides a stronger narrative on the value of cloud to the enterprise.

This is a bespoke unit costing framework tailored to the customer’s organizational and financial structure, with cloud cost as the foundational layer. Integration with existing tagging, account structure, and cost allocation tools.

**Helping answer such questions as: **

1. How much revenue is driven by cloud spend?
2. How does revenue scale with increased usage?
3. What is the driver behind a cost increase - a technical issue? Increased sales?
4. Did a new feature release increase or decrease overall product profitability?
5. Are our products priced appropriately?
6. Should I offer a product or service in a new region?
7. Should we adopt a new business model for a product (eg. usage-based vs seat based)?
8. Should we launch a freemium campaign for a product? What conversion rate is needed to make it worthwhile?
9. What are unprofitable units, margin-leaking products, or underperforming segments - or the reverse: highly profitable customers or products

**Outputs: **

1. Visibility into the total cost of delivering software for each product and customer, (ex; support, licensing, and internal resources).
2. Highlight high-cost customer segments or product areas to guide future optimization and product strategy.
3. Reduce manual effort and increase the reliability of cost reporting through automation and repeatable processes.
4. Insights for product pricing; using actual usage and cost patterns as levers for cost modeling.
5. Improve the accuracy of forecasting and budgeting.
6. Uncover margin erosion or untapped profitability by identifying discrepancies between product pricing and delivery costs.
7. Deliver insights into what factors drive margin and who owns those drivers.
8. Create executive-level reporting and customer-level profitability / margin analysis to support strategic planning.
9. Mapping of AWS and multicloud / SaaS services to business units and value-generating activities

Optional: integration-ready output for dashboards, BI platforms, or internal cost transparency tools (chargeback/showback)

Ideal Customer:

• Large Enterprise or digital-native organization with complex cloud footprint (AWS or multicloud)
• Seeking to align cloud (SaaS, Private or Public Cloud) spend with business outcomes
• Facing challenges in understanding cost per customer, product at scale or other business-aligned units.
• Current FinOps practices are in place (e.g., tagging, CUDs/SPs), but finance visibility remains opaque
• Key stakeholders: Finance, Cloud Economics, Cloud Platform Engineering, and Product Finance or BU leaders.

****Approx Time to Complete: 3-6 months.