Glossary
Unit Economics

Cost Avoidance

Spend that was prevented rather than removed cost that would have been incurred without an intervention.
Measures costs prevented by an action, distinguishing avoided future spend from savings removed from an existing bill.

Related terms

Unit Economics

Cloud COGS

The portion of cloud spend that is attributable to delivering the product to paying customers.
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Unit Economics

Cloud Gross Margin

Revenue minus cloud cost of goods sold, expressed as a percentage of revenue.
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Unit Economics

Cloud Unit Economics

Measuring cloud cost per unit of business value per customer, per transaction, per API call rather than in absolute dollars.
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