Private Pricing Term Sheets (PPTS) are cost-saving mechanisms offered by cloud vendors to enterprise customers with large spends, providing discounted rates in exchange for annual commitments to spend a certain amount on services. The discounts increase with larger spending amounts and longer commitment periods, but any excess spending beyond the committed amount is charged at On-Demand prices. To take advantage of PPTS, companies must have an accurate estimate of their yearly expenses and commit to spending the full amount they agree upon. The program offers flexibility in terms of multi-year commitments and allows customers to adjust their spending year-to-year as long as they meet their commitment. However, the discounts are highly variable from customer to customer due to direct negotiations with cloud vendors, making it essential for companies to negotiate effectively to optimize their savings.