Private Equity • A Guaranteed Cloud Cost Synergy Across the Portfolio • Archera

The problem

The problem you live with today

Revenue synergies are a hope. Cost synergies are a plan, and cloud should be the easiest one in the deck. It rarely is: portfolio companies fear lock-in, engineers are not paid on cost, and nobody at the fund has a clean view across companies. So year-one savings arrive, partially, in year three.

Better together

A portfolio-level rate lever with no infrastructure work

No headcount and no platform fee; Archera earns a premium only in months the company saves. Each company connects read-only and gets a savings analysis in 24 hours. Commit for 30 days or a year instead of three; if usage changes or the company is sold, the unused portion is refunded. Value creation teams get fund-level reporting.

The exit math · one portfolio company, illustrative

$2Mannual cloud bill, mostly at list price

→

$800ksaved per year at a 40% rate reduction, straight to EBITDA

→

$8M–$9.6Mof enterprise value at a 10 to 12x EBITDA multiple

Nothing else in the company changes: no headcount, no re-architecture, no platform fee; Archera earns a premium only in months the company saves. Commitments are short-term and guaranteed, so none of it becomes a stranded liability in the data room. Multiply by the portfolio.

Who gets what

What your portfolio companies get

30 to 47% lower rates

On reservable services, straight to gross margin and EBITDA.

No lock-in at exit

Commitments are short-term and guaranteed.

Zero engineering lift

Read-only connection, about ten minutes, no architecture changes.

One console, three clouds

Commitment management, visibility, and forecasting for AWS, Azure, and Google Cloud at no cost.

A repeatable cost synergy

Near-certain realization, deployable across the portfolio in weeks.

Fund-level reporting

Cloud spend, coverage, and realized savings by company, for operating reviews and LP updates.

A pre-acquisition assessment

One billing export returns a Commitment Risk Snapshot within 24 hours, so cloud savings are underwritten before close.

One structure across acquisitions

Existing enterprise agreements and private pricing consolidated into one optimized, guaranteed position.

How it works

How it works together

Start with three companies

With the value creation team, pick three portfolio companies with meaningful cloud spend and connect them read-only.

Get the analysis

A savings analysis per company within 24 hours, plus a portfolio summary for the operating partner.

Each company chooses

Guaranteed Commitments, native commitments, or a mix. Archera purchases them in the company’s own accounts.

Roll out and add to diligence

A standard onboarding play for the rest of the portfolio, and the assessment in diligence for every new deal.

Proof

PubNub: $4.21M net savings in 18 months, no infrastructure changes. At a 10 to 12x exit multiple, roughly $28M to $34M of enterprise value.

PubNub closed the last five points of commitment coverage with Guaranteed Commitments and kept the savings when usage moved. James Hamilton, PubNub’s VP Operations and Controller, tells the story in the PubNub case study.

$5B+cloud spend under management every year