Customers have enjoyed discounts and benefits from Amazon Web Services’s (AWS) Enterprise Discount Program through their commitment to long-term, high-volume spending.
Through their value of investments, AWS customers achieve sustainable economies of scale. Organizations continue to optimize their business operations through cloud growth, all while optimizing costs and efficiency.
AWS recently announced a major update to its policies. Effective May 1st, 2025, AWS Marketplace will list all SaaS products, regardless of where they are hosted.
The catch: only products hosted on AWS will qualify for EDP spend commitments. This change is sparking internal conversation and negotiation rumblings.
Many ecosystems are leveraging crucial apps not hosted on AWS. Drop the app or lose out on savings might seem like the only answer, but many organizations are finding they don’t have to make unnecessary sacrifices.
AWS Enterprise Discount Program (EDP) Explained
The AWS Enterprise Discount Program is a discount agreement available to customers who have a demonstrated history of high-spend, long-term commitment.
The program scales with business capabilities. Commitment to higher spend and/or longer terms yields increased discount percentages per year.
AWS EDP has served many organizations well in maximizing their cloud investment. Migrating workloads and acquiring new business allows for strategic growth prerequisites to meet EDP commitments.
Businesses Save Through AWS Commitments
AWS outlines exactly how companies can achieve their discounts and incentives through spend commitments. AWS upholds its benefits when a customer agrees to spend a prearranged dollar amount on cloud services over a specific period.
Longer commitments, with higher spend help in the journey to scale up. While precise discount rates aren’t publicly shared, the baseline for annual commitment starts at $1 million for US organizations, with terms from 1 to 5 years.
Immediate Effects Of New AWS EDP Changes
The policy changes the terms for discount eligibility. Only apps hosted entirely on AWS qualify toward EDP spend commitments.
Customers should be diligent and verify their vendors by confirming their adherence to the new hosting rules for their apps.
Some products may need to be reevaluated or switched if hosted elsewhere. Additionally, budgeting adjustments may be necessary to AWS forecasting to maintain spend commitments.
Create An AWS EDP Checklist For Better Negotiation
Businesses are preparing for contract negotiations by taking stock of workloads, understanding the market, and forecasting growth:
- Review past AWS spending, and usage to accurately forecast growth
- Compare apps used with those available on AWS
- Maximize leverage by demonstrating value to long-term commitment
- Consolidate spending with parent/subsidiary organization(s)
Reviewing these items ahead of negotiations may help in contract discussions, but the best response to AWS EDP changes is found through expert partnerships. The guidance of business solutions experts sets up your business for long-term savings in the face of policy change.
Keep Your Discounts, Keep Your Apps
Customers who utilize third-party apps for their unique ecosystems feel the pressure to switch or lose out on their EDP savings.
Maintaining incentives and hitting spend commitments with the latest AWS updates might seem more difficult, but you do have options.
Worldnet partners with trusted vendors who specialize in AWS-native solutions. It’s not just customers shifting, but vendors too. Our agents identify which providers can help maintain your discounts or are in the process of switching to AWS-hosted apps.
Your best response is action. Working with Worldnet ensures the active pursuit of savings, regardless of the fine print.
