Determine Effective Savings Rate

Context

The Effective Savings Rate is a KPI to track the efficiency of using commitment discounts.

The KPI calculation is (Contracted Cost – Effective Cost) / Contracted Cost.

The Contracted Cost can be computed from the Contracted Unit Price and the Quantity in Pricing Unit.

Outcome: FinOps Practitioners are able to compute in a first step the Contracted Cost from the Contracted Unit Prices and the Quantities in Pricing Unit, and in the second step the ESR, which is (Contracted Cost – Effective Cost) / Contracted Cost.

FOCUS Columns

FOCUS SQL Query

SELECT
  ProviderName,
  ContractedUnitPrice,
  PricingQuantity,
  EffectiveCost,
  ((ListCost - EffectiveCost)/ListCost) AS ESROverList,
  ((ContractedUnitPrice - EffectiveCost)/ContractedUnitPrice) AS ESROverContract
FROM focus_data_table
WHERE ChargePeriodStart >= ? and ChargePeriodEnd  < ?