| 00:00 - 00:05 | So, we tell this big enterprise customer |
| 00:05 - 00:07 | Hey, you need to upgrade to Z17 |
| 00:07 - 00:10 | They have 100k MIPS |
| 00:11 - 00:16 | and 100 Million Lines of Code |
| 00:17 - 00:21 | We propose a standard contract |
| 00:21 - 00:24 | It has no EOS Transparency |
| 00:29 - 00:31 | or MIPS Flexibility |
| 00:31 - 00:34 | not even one concession |
| 00:38 - 00:40 | No clear dates |
| 00:41 - 00:47 | Just "whenever we decide" |
| 00:47 - 00:50 | And Escalation? 20% per Year! |
| 00:50 - 00:56 | Compounded! No Cap! |
| 00:58 - 00:59 | Year 1 is $50M |
| 00:59 - 01:01 | at $500 per MIPS |
| 01:04 - 01:06 | But Year 10? |
| 01:06 - 01:08 | $259M! |
| 01:13 - 01:14 | Total over $1B! |
| 01:14 - 01:16 | We threaten their ops |
| 01:16 - 01:20 | if they don't sign |
| 01:21 - 01:27 | and tell them bad things will happen |
| 01:35 - 01:36 | so then we tell them |
| 01:36 - 01:39 | hurry or we will end your support |
| 01:41 - 01:44 | so you need to sign |
| 01:44 - 01:47 | by the end of calendar year |
| 01:47 - 01:49 | and they sign |
| 01:50 - 01:53 | Year 1 is $50M |
| 01:54 - 01:56 | $50M |
| 01:56 - 01:58 | at $500 per MIPS |
| 01:58 - 02:02 | No Negotiation - none; only sign |
| 02:05 - 02:07 | They just accepted |
| 02:10 - 02:11 | But |
| 02:11 - 02:13 | By Year 10? |
| 02:15 - 02:17 | $259M per year! |
| 02:17 - 02:20 | 10 Year Contract Cost |
| 02:21 - 02:28 | Over $1 Billion .. US Dollars |
| 02:29 - 02:30 | $1 Billion |
| 02:30 - 02:32 | Whether the use it or not |
| 02:36 - 02:39 | Even if they migrate to cloud |
| 02:40 - 02:42 | no credits |
| 02:50 - 02:55 | still full price whether they use it or not |
| 02:56 - 02:58 | what should they have asked? |
| 02:58 - 03:04 | with simple protections |
| 03:04 - 03:09 | like MIPS flexibility or EOS transparency |
| 03:09 - 03:11 | they could save $691M |
| 03:16 - 03:20 | They are our Captives Now |
| 03:23 - 03:26 | They will be paying Forever |
| 03:31 - 03:36 | They Shacked Themselves - and Thanked us! |
