An AWS Partner was experiencing high growth, adding new clients on a regular basis. As the company added clients however, it in turn added exponential complexity to the billing while producing limited profits due to increasing overhead. The company reluctantly purchased AWS reservations to collect the arbitrage profits but quickly discovered that it was difficult to ensure that the reservations were being fully utilized. The CEO was abundantly aware that reservations were the key to increased profitability but he had no way to monitor, make adjustments or make additional purchase decisions. Simply put, the work required to maximize profits wasn’t humanly possible.
The AWS Partner began to use Parquantix, a web-based tool that utilizes proprietary algorithms to monitor clients’ EC2 usage and automatically purchases, resizes and moves reservations to match their activity, almost doubling partners’ profit. The client started out with a small purchase of reservations as the CEO wanted to be cautious until he could see quantifiable results. At initial launch, the client was frequently quizzing the Parquantix team on many of the reservation purchases and digging into the details of the tool’s actions. The power of Parquantix, and the profits it was yielding, were almost unbelievable. Currently, the parties gather for a monthly meeting, which is often cancelled by the client because the tool has proven itself. Since the risk to the client is zilch, there isn’t need for caution.
The client’s profit margin was consistently around 8%, but after three months with Parquantix, the number had moved up to 14%; after six months it was 18%. Instead of hesitating, the client began pushing to purchase more reservations. Currently, the client’s profit margin runs between 17-19% with the use of Parquantix. Furthermore, Parquantix has substantially reduced the client’s billing production time – decreasing preparation time from days to mere minutes.