This guide provides essential insights into how the AWS EDP discount program can bring substantial cost savings and strategic benefits to enterprise cloud users. Learn how to maximize the potential of this program, optimize spending, and leverage expert strategies to ensure a successful and economical cloud journey with AWS in this detailed and holistic guide.
What is the AWS EDP Program?
The AWS Enterprise Discount Program (EDP) is a special discount program that offers huge cost savings on AWS usage fees to enterprise cloud users. In exchange for a committed long-term relationship, typically ranging from one to five years, customers receive a substantial, fixed discount on their AWS expenses.
This program is particularly attractive for organizations undergoing comprehensive cloud transformations, as it offers financial advantages over time. The AWS EDP discount enables businesses to align their cloud strategies with their long-term goals and optimize their technology spend while using its techstack.
Key Highlights of AWS EDP Discount Program?
- Substantial Savings: Enjoy significant flat discounts on AWS usage fees, delivering cost advantages for enterprise cloud users.
- Long-Term Commitment: Secure discounted rates by committing to a long-term partnership with AWS, typically spanning one to five years.
- Cloud Transformation Support: Ideal for genuine cloud transformations, enabling organizations to fully leverage cloud benefits over time.
- Strategic Alignment: Align cloud strategy with long-term goals, optimizing technology spend and utilizing AWS resources effectively.
- Expert Guidance: Partner with AWS Premier Consulting Partners like Mission for expert negotiation and optimization, ensuring maximum benefits from the program.
Terms and Conditions of AWS EDP Discount Program
The “Terms and Conditions” of the AWS EDP Discount Program are the rules and guidelines that both AWS (Amazon Web Services) and the participating organization agree to follow when entering into this program
- Long-Term Commitment: Participants in the AWS EDP commit to a specified period, usually ranging from one to five years. This commitment ensures that the agreed-upon discount remains applicable throughout the committed timeframe. The commitment period allows AWS to offer substantial discounts in exchange for the customer’s commitment to using AWS services for an extended duration.
- Usage Eligibility: The discounts provided by the EDP are applicable to specific AWS services outlined in the agreement. While most commonly used AWS services are covered, it’s important to review the terms to ensure that the services your organization uses are eligible for the discounts. Some specialized or newer services might be excluded or have separate pricing terms.
- Financial Terms: The financial terms, including the discount percentage and pricing structure, are detailed in the EDP agreement. This agreement outlines the exact terms under which the discount applies. Any changes to pricing during the commitment period are subject to negotiation and mutual agreement between the participant and AWS.
- Commitment Renewal: At the end of the initial commitment term, participants have the option to renew their commitment. Renewal offers the opportunity to adjust the terms and discounts based on updated requirements, changes in usage patterns, and evolving business needs. This flexibility allows organizations to continue benefiting from the program while accommodating changes in their cloud strategy.
- Termination: Early termination of the EDP commitment might lead to financial implications or adjustments to the discount applied. The agreement typically outlines the consequences of terminating the commitment before the agreed-upon timeframe. These consequences serve to incentivize participants to honor their commitment, as the discounts provided are designed to be a long-term benefit.
AWS EDP Qualification Criteria (Eligibility)
- Annual Spending Commitment: Organizations based in the United States are typically required to make a minimum spending commitment of $1+ million to qualify for the EDP.
- Term Length: The standard term length for the EDP ranges from 1 to 5 years. Organizations that commit to higher spending amounts and longer terms can move up in discount tiers. The starting point for standard tiering is around $1 million, with increasing discounts aligned to higher commitments.
- Discount Tiers: Committing more and opting for longer terms allows organizations to progress to higher discount tiers. Although specific discount percentages are not publicly disclosed, larger commitments such as Lyft’s $300 million deal are likely to receive substantial discounts.
- Contract Duration Preference: AWS favors longer-term commitments. Opting for a single 3-year term, for example, offers benefits over three separate 1-year terms for the same purchase commitment within the AWS EDP. This preference is twofold: longer-term commitments qualify for higher discount brackets, and considerations regarding underspending or overspending EDP AWS commitments apply exclusively to the entire term duration.
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What is the Average Discount in AWS EDP Discount Program?
Typically, the baseline discount within the AWS Enterprise Discount Program (EDP) for an annual commitment starting at $1 million could be approximately 6% on the standard AWS on-demand pricing model. Do note that this baseline percentage can vary based on different factors, including the specific terms of negotiation, the duration of the commitment, and the organization’s individual circumstances.
Can You Negotiate a Better AWS EDP Discount?
Yes, negotiation for a more favorable AWS Enterprise Discount Program (EDP) is less likely, but possible. While the program provides baseline discounts, organizations often have the opportunity to enhance these discounts through effective negotiation.
They have to demonstrate a significant commitment, aligning with long-term strategic goals, and leveraging the expertise of AWS partners or consulting services to get better deals for their AWS packages. This way businesses can increase their chances of obtaining improved discount terms.
Engaging in transparent discussions with AWS representatives can lead to tailored agreements that better reflect the organization’s needs and potential for increased cost savings within the AWS EDP.
Checklist to Prepare for AWS EDP Negotiation
Here’s a step-by-step checklist in simple words on how to prepare for negotiating an AWS EDP discount:
- Plan for Growth: Work with your finance and engineering teams to predict how much you’ll use AWS cloud and storage services like Amazon S3, EC2, and RDS in the future. This helps you estimate costs based on your company’s growth plans.
- Check Past Spending: Look at what you spent on AWS before. This helps you understand how much you’ve used and what you might need in the future.
- Learn about Workloads: Understand what kind of work you do on AWS and how much it costs. Compare these costs with other options like using different vendors or different cloud services.
- Look at AWS Marketplace: See if you’re using any apps from the AWS Marketplace. This can affect your spending within the AWS EDP.
- Show Your Value: Tell AWS how valuable your business is. If you commit to using their services for a long time, they might give you a better deal. Make sure you have a good idea of how much AWS you’ll need and use that when you talk about getting a discount.
- Watch Your Targets: Set your AWS EDP targets carefully. This is important so you don’t spend too much or too little. If you spend more than you planned, it can cost you extra.
- Know the Market: Understand what’s happening in your industry. This helps you predict how much AWS you might need in the future.
- Combine Spending: Check if other parts of your organization also use AWS. If they do, you might get a better discount if you all use AWS together.
- Talk About Your Goals: Tell AWS what you’re trying to do as a business. This could be more than just saving money. It could be things like launching new products, training, or other business plans.
- Be Prepared: Make sure you have all the right answers and information before you talk to AWS. Being ready will help you negotiate better and get a deal that works for you.
Preparing for an AWS EDP discount negotiation is important to save money on your AWS bill. When you talk to AWS, remember these steps to help you get the best deal for your cloud needs.
AWS EDP Alternatives: Getting the Best Amazon Cloud Discount
Even if you don’t qualify for the AWS EDP, consider the following options:
- AWS Partner Opportunity Acceleration Program (POA): Designed for specific projects with defined objectives, the AWS POA program typically involves collaboration with strategic services partners. To qualify, organizations work with partners to outline upcoming projects and estimate AWS usage. This program allocates financing based on projected usage, allowing businesses to make the most of eligible discounts with nOps helping forecast cloud spending for accuracy.
- AWS Private Pricing Term Sheet (PPTS): Tailored for smaller companies within the AWS EDP marketplace, the AWS PPTS lowers the commitment threshold to an annual spending of $500,000. This option provides a more accessible entry point compared to the AWS EDP program.
- AWS Migration Acceleration Program (MAP): This program facilitates seamless migrations from on-premises data centers or other cloud vendors to AWS. Offering onboarding discounts and migration credits, MAP streamlines transitions to the AWS cloud.
- Other AWS Programs: AWS presents diverse payment and pricing models for cost savings based on usage frequency, volume, and commitment duration. Popular options include the AWS Savings Plan, Volume Discount, Dedicated Hosts, and more.
While the AWS EDP offers significant benefits, exploring these alternatives enables you to find the optimal fit for your organization’s cloud strategy. By leveraging the various programs and pricing models available, you can unlock substantial Amazon Cloud discounts that align with your usage patterns and business objectives.
How to Optimize Spend and Engagement with AWS EDP
When it comes to getting the most out of the AWS Enterprise Discount Program (EDP), there are a few smart steps you can take to make sure you’re using it effectively:
- Know Your Usage: Keep track of how much AWS you’re using. This helps you understand what you need and avoid paying for things you don’t.
- Plan for Growth: Think about how your usage might change in the future. This helps you predict what you’ll need and get the best discounts.
- Review Regularly: Take time to review your AWS usage and spending. This way, you can make adjustments if needed and stay on track.
- Use What You Pay For: Make sure you’re using the AWS services you’re paying for. This helps you get the value you’re entitled to.
- Stay Aligned: Keep your cloud strategy in line with your EDP agreement. This way, you can make the most of the program and your cloud goals.
By following these steps, you can optimize your spending and engagement with the AWS EDP, ensuring that you’re using it to its full potential for your organization’s benefit.
What is the Flat discount on AWS usage fees in exchange for a Commitment?
A flat discount on AWS usage fees in exchange for a commitment means that if an organization agrees to use a certain amount of AWS services for a specific period, AWS offers them a fixed percentage off the regular price. For most AWS services, this flat discount is set at 6%. This commitment can be in the form of a long-term agreement, usually ranging from one to five years, where the organization agrees to spend a certain amount on AWS services during that time.
In return for this commitment, AWS provides the organization with a consistent 6% discount on their usage fees for the specified services. This allows the organization to save money on their cloud expenses in exchange for committing to use AWS services for a set duration and spending level.
The flat discount is a way for AWS to incentivize long-term partnerships and provide cost savings to organizations that plan to use their services consistently over time.
How Can Organizations Assess Short/Long-term Use Cases for Resource Planning?
When it comes to figuring out what resources and platforms you need for both the short and long term, there are a few steps you can take:
- Identify Your Needs: First, understand what your organization’s goals are. Are you planning to launch a new app or handle more customers? Knowing your goals helps you figure out what resources you’ll need.
- Check the Past: Look at how you’ve used resources before. This helps you see patterns and understand what you might need in the future.
- Consider Trends: Think about what’s happening in your industry. Are there any trends that might affect your resource needs? Stay updated on things like customer demands and market changes.
- Think About Costs: Resources and platforms have costs. Compare the costs of different options to find what fits your budget.
- Plan Ahead: Imagine what your organization might need in the coming years. Are you going to expand or change how you work? This helps you plan for the long term.
By following these steps, organizations can assess needs and make informed choices about the resources and platforms that will work best for short and long-term goals.
Hire Folio3 As Your AWS EDP Consultant
Partner with Folio3 as your trusted consultant for the AWS EDP. With our expertise and experience, we can assist you in navigating the intricacies of the AWS Enterprise Discount Program and helping you in getting the most benefit. From planning and optimization to negotiating terms, we’ll work closely with you to ensure you maximize the benefits of the program and achieve your cloud goals efficiently.
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Contact us for details.