Cloud Service Providers: How to Choose and Negotiate the Best Terms

With AI innovations promising to change the business world, cloud computing has never been more essential. Since cloud computing provides the necessary infrastructure required for AI, it will be challenging for organizations that want to stay ahead to stick with less efficient traditional computing.

The good news is that there are highly-rated cloud service providers to help you with the transition to an internet-based connection. In this article, we cover unique selling points and pricing for:

• Google Cloud Platform (GCP)
• Amazon Web Services (AWS)
• Microsoft Azure 

We also discuss what to keep in mind when choosing a cloud service provider, and we explore how Vendr can help you negotiate better deals with the right buyer levers and negotiation tactics.

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What is a cloud service provider?

A cloud service provider is a third-party company that offers on-demand, cloud-based computing resources. Rather than rely on traditional computing with a hardwire connection to access data, servers, and storage, cloud services give users access to these same resources via an internet connection, making it simpler to use and faster to scale.

With cloud infrastructure, companies can:

• Host websites
• Boost cybersecurity
• Backup key data in case of outages, hacking, or crashed servers
• Handle larger and more complex amounts of data
• Increase efficiency using AI tools

Top cloud service providers in 2025

Our top cloud service providers — Google Cloud Platform (GCP), Amazon Web Services (AWS), Microsoft Azure — are highly-rated industry leaders and major owners of market share.

Let’s explore key features, unique selling points, and pricing for each solution.

Google Cloud Platform (GCP)

Google Cloud Platform (GCP) is a cloud computing service that lets companies build apps and websites and store all of their data on the cloud. 

Key features

• Google’s Compute Engine and Cloud Storage for handling large amounts of data securely
• Vertex AI, which is a unified platform for machine learning models and generative AI
• Access to Google products, which are all powered by Google’s new AI assistant, Gemini

Unique selling points and key considerations

Google Cloud is ideal for startups that are building and testing new AI products. It also makes a lot of sense for users already working with Google Workspace or who have some familiarity with Google apps. 

Customers in our buyer community have also used Vendr’s negotiation insights to secure a 20% discount by leveraging end-of-year timing and budget, or access additional Google Cloud products as part of a larger subscription bundle.

GCP pricing breakdown

While Google Cloud doesn’t make their pricing tiers readily available, it does offer a few different pricing models:

• Pay-as-you-go pricing, where you only pay for the cloud services you use.
• Committed use, in which you can pay upfront for services, often at a discounted rate
• Service-specific pricing. This lets you pay for what you do with specific Google Cloud services, such as Cloud Functions or Cloud Storage

Currently, new customers can get $300 in free credits to try and test Google Cloud products. Then skip the negotiation down the line and save thousands on Google when you get a Marketplace Private Offer through Vendr.

Amazon Web Services (AWS)

Amazon Web Services (AWS) is Amazon’s infrastructure-as-as-a-service (IAAS) provider. Intended to be highly scalable for growing companies, you only pay for the services you use, making it a good alternative to pricier competitors.

Key features

• Elastic Compute Cloud (EC2), which is Amazon’s public cloud service that provides secure, scalable computing capacity in the cloud
• Glacier, which is a low-cost cloud storage system, and Simple Storage Service (S3), which can handle larger amounts of data 
• Amazon Q, a generative AI-powered assistant for software development and internal data management

Unique selling points and key considerations

AWS is great for new companies looking to build their online presence or software from the ground up and on a budget. It’s also a solid solution for developers who build and deploy apps for Android or iOS.

AWS pricing breakdown

The AWS Free Tier offers three options for free trials:

• 12 months free: Customers can use the product for free up to specified limits for one year from the date the account was activated.
• Always free: Customers can use the product for free up to specified limits as long as they are an AWS customer.
• Short term free trials: Services with a short term trial are free to use for a specified period of time or up to a one-time limit depending on the service selected

For paid plans, AWS also offers a pay-as-you go pricing model, which means you’ll only pay for services as you use them, and AWS will invoice you only for services accrued monthly. 

Microsoft Azure

Microsoft Azure is Microsoft’s cloud computing service, which offers full and hybrid cloud capabilities for more sophisticated data management and storage. 

Key features

• Azure Web, which supports the development and deployment of web applications
• Azure Storage, which offers scalable storage for structure and unstructured data
• Azure Stack, which allows you to extend your Azure services to 5G edge locations and remote data centers for better, more secure service  

Unique selling points and key considerations

Microsoft Azure is great for businesses built on Microsoft’s existing product ecosystem. With hybrid and multi cloud options, it’s also a solid option for large, globalized companies and enterprises who need extra security and efficiency for managing and protecting data. 

Microsoft Azure pricing breakdown

To request a specific quote, you’ll have to contact their sales team. Or, you can save money with Vendr's Marketplace insights—helping teams save an average of 9% when purchasing Microsoft Azure.

In general, the platform offers four specific pricing options:

• Pay as you go — Pay for compute capacity by the second, with no long-term commitments or upfront payments.
• Azure savings plan for compute — Commit to spend a fixed hourly amount for 1 or 3 years, unlocking lower prices until you reach your hourly commitment.
• Reserved Instances — Azure Reserved Virtual Machine Instances provide significant cost reduction, compared to pay-as-you-go rates, when you commit to one-year or three-year terms. 
• Spot — Buy unused Azure compute capacity at deep discounts to run interruptible workloads.

How to choose a cloud service provider

Let’s explore what you should consider in your purchase process, specifically how you should approach pricing.

Key considerations for evaluating a provider

• Scalability — Determine how much computing capacity you need now and make sure your service provider can also handle bigger projects as you grow.

• Security and compliance — Ask providers how well their service works in preventing data breaches, leaks, and attacks. Make sure their product keeps you in compliance with local, state, and national security and privacy regulations.

• Flexible pricing — Prioritize a provider that offers different pricing options, such as a free tier or per-second pricing.

• Support — The ideal provider has a dedicated customer support team that can help you with implementation and troubleshoot complicated issues as you adjust to a new cloud-based service.

Pricing models explained

Businesses usually only have to pay for the cloud services they use. But, this depends on the providers and additional products customers utilize in addition to cloud computing. 

Cloud service providers may also offer subscription-based services that let you bundle additional products at a discounted price. Or, you can opt for reserved instances, which let you reserve cloud capacity for specific time periods at a highly discounted rate.

How can you secure favorable cloud service contracts?

Get better deals on your cloud service provider contract when you follow industry and expert best practices for purchasing. 

Understand pricing breaks and volume commitments

It’s possible to negotiate better cloud service provider deals by buying products at a higher volume. This means you can negotiate a yearly or monthly subscription bundle that won’t go up, even as usage does. You’ll also be able to access a few more additional cloud products without paying more. 

Conduct market research for industry benchmarking

Use our Buyer Guides to learn what competitors and peers are paying for similar service providers, or talk directly to a sales consultant via Vendr’s Intelligence platform about trends they’ve observed among cloud service provider buyers in your industry.

Use expert negotiators and contract analysis

Get negotiation support and learn how to save more money on your cloud service provider access by talking directly to our negotiation experts. With Vendr, you’ll also get support from a SaaS consultant when it’s time to renew your contract.

How Vendr can help companies get the best terms on cloud service contracts

When you consider how integral cloud-based computing is for any company to grow today, getting your cloud service contract right is a major undertaking.

Vendr can help. With market insights, buyer data, and on-demand experts to help them get better deals with new and current suppliers, it’s no surprise Vendr has already helped companies save a total of over $430 million in spend. 

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