Editorial photograph of a procurement team mapping AWS EDP discount tiers against the trailing spend curve on a wall display
Article · AWS · EDP Discount Tiers

EDP discount tiers, mapped.

The Enterprise Discount Program runs a tiered discount curve. The headline numbers move with the commit, the term, and the negotiation play. Buyer side benchmarks for the EDP discount tiers in 2026.

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The AWS Enterprise Discount Program runs a tiered discount curve. The first dollar commits earn a single digit discount. The largest commits reach into the 30s. Each tier carries its own commit threshold and its own term length expectation.

This piece reads as a benchmark reference. Use it with the EDP negotiation page, the EDP commitment calculator, the EDP discount benchmarks reference, and the EDP renewal service page.

Key Takeaways

What a procurement lead needs to know in 90 seconds

  • The EDP discount is non public. AWS sets the rate card by deal.
  • Discount tiers step up by commit and by term. Three year terms unlock deeper tiers.
  • Commit thresholds sit at round dollar lines. $1m, $5m, $10m, $25m, $50m, $100m.
  • Savings Plans and RIs sit under the EDP. The EDP applies to net usage after coverage.
  • Marketplace pass through changes the math. Marketplace counts toward commit at a negotiated percentage.
  • The tier is a starting point. Negotiation levers move the realized rate by 2 to 6 points.
  • Buyer side benchmarks set the envelope. Independent comparison across estates wins the tier.

Why the EDP runs in tiers

The EDP is a tiered commitment program. Larger commits earn deeper discounts. Longer terms earn deeper discounts. The tier curve is not published. AWS sets the rate card per deal based on the commit, the term, and the strategic value of the customer relationship.

Three reasons the tier shape matters

  • Commit step. Moving up one tier swings the discount by 2 to 6 percentage points.
  • Term step. Moving from three to five years swings the discount by 4 to 8 percentage points.
  • Account team incentive. Larger tiers carry larger account team variable comp.
Editorial photograph of a CFO and procurement team reviewing AWS EDP commit tier benchmarks against the trailing spend forecast
Editorial reference. EDP commit tier benchmark review across trailing spend curve and forward forecast.

Tier benchmark table

The benchmark table below sits at the core of the EDP tier decision. The discount range is the typical band for that commit at that term. The realized discount within the band depends on the negotiation levers and the customer's strategic profile inside AWS.

EDP discount benchmark by tier in 2026

Annual commit1 year3 year5 year
$1m3 to 5%5 to 8%7 to 10%
$5m5 to 8%9 to 14%11 to 16%
$10m7 to 11%12 to 18%15 to 21%
$25m10 to 14%16 to 22%19 to 25%
$50m13 to 17%20 to 28%23 to 31%
$100m+16 to 20%24 to 34%27 to 37%

Why the band, not the point

Public benchmarks cite a single number. The reality is a band. Discount within the band depends on the negotiation, the marketplace inclusion percentage, the carry forward and true forward terms, and the strategic AWS relationship. Buyer side advisory works the band, not the point.

How AWS sets the tier

The AWS account team scores the deal against three internal axes. Commit size. Term length. Strategic value. The strategic value covers reference rights, public case studies, executive sponsorship, and competitive replacement.

Three axes the AWS account team uses

  • Commit size. The dollar commit at the annual line.
  • Term length. One, three, or five years.
  • Strategic value. References, case studies, executive sponsorship, competitive wins.

Term length and the tier

Term length is the single largest tier mover after commit. A three year term earns roughly half the depth that a five year term earns at the same commit. The buyer side question is whether the cloud strategy supports a five year horizon.

Three considerations on term length

  • Cloud strategy stability. Five years is a long horizon in cloud.
  • Exit ramp. Five year terms should carry richer exit ramps.
  • True forward. Longer terms increase the value of the true forward clause.

Marketplace and savings plans

Marketplace pass through and Savings Plan coverage change the effective commit math. The EDP discount applies to the net usage after Savings Plan coverage. A negotiated percentage of marketplace spend counts toward the commit.

Effective commit math levers

LeverEffect on tierNegotiation status
Savings Plan coverageReduces net usage eligible for EDP discountAlways present
Reserved InstancesReduces net usageAlways present
Marketplace pass through percentageIncreases eligible spend toward commitAlways negotiable
Service exclusionsRemoves certain services from commit countSometimes negotiable
Carry forwardAllows unused commit to roll forwardAlways negotiable

Negotiation levers per tier

Different levers move different amounts at different tiers. Below $10 million in annual commit, the headline discount carries most of the value. Above $25 million, the flexibility clauses carry as much value as the headline rate.

Six levers and the tier they fit

  • Headline discount. All tiers, primary lever below $10m.
  • Marketplace pass through percentage. All tiers, primary lever above $10m.
  • Carry forward and true forward. Three and five year tiers.
  • Service exclusions. Customers with predictable non commit services.
  • Acquisition flex. Estates with active M&A pipeline.
  • Exit ramp. Three and five year tiers carrying structural uncertainty.

What to do next

The eight step checklist below moves an AWS estate from a default EDP tier into a defensible buyer side envelope. Open it 9 months before the EDP anniversary.

  1. Pull 18 months of AWS Cost and Usage Reports. Reconcile to account and service.
  2. Score the existing Savings Plan and RI coverage. Current and target.
  3. Forecast the trailing 12 month commit eligible spend. Base, downside, upside.
  4. Map the AWS Marketplace catalog and forecast pass through. Eligible spend by seller and category.
  5. Benchmark each tier scenario. One, three, five year terms.
  6. Score the strategic AWS relationship value. References, case studies, executive sponsorship.
  7. Draft the negotiation envelope. Headline, marketplace, carry forward, exit ramp.
  8. Lock the tier 60 days out. Document the residual clauses and signoffs.

Frequently asked questions

What is the public AWS EDP discount?

AWS does not publish the EDP discount tier table. The discount is set per deal based on the commit, the term, and the strategic value of the customer relationship. Buyer side benchmarks set the realistic discount band for each commit tier. Independent advisory compares the proposed discount against the band derived from comparable enterprise estates.

How do we land the next tier up?

The path depends on the current commit and term. Below $10 million annual commit, the path is usually a higher commit. Above $25 million, the path is a longer term, higher marketplace pass through, or a richer strategic value play.

Should we sign a five year EDP?

Five year EDPs unlock the deepest discount band. They also lock the buyer to AWS at scale for half a decade. The decision rests on the cloud strategy. Five year terms fit estates with a clear AWS first cloud strategy and acceptable exit ramp clauses. Three year terms fit estates with active cloud strategy review or recent M&A activity.

What happens to the tier if our spend shrinks?

The tier is fixed at signature. If actual spend drops below the annual commit, the customer pays a shortfall invoice equal to the gap. Flexibility clauses change the picture. Carry forward rolls unused commit into the next year. Exit ramps wind the commit down structurally. The fix is to negotiate the clauses at signature, not at the renewal.

Does marketplace spend always count toward EDP?

A negotiated percentage of AWS Marketplace spend counts toward the EDP commit. The typical band is 25 to 100 percent. Some seller categories are excluded by default. Private offers usually carry the higher pass through percentage. The buyer side play is to model the marketplace forecast and negotiate the pass through percentage on the eligible categories before signature.

Can we renegotiate the tier mid term?

Mid term renegotiation is unusual but possible. The trigger is usually a structural change in the AWS estate. M&A activity, a major workload migration, or a competitive replacement event opens the door. AWS will sometimes restructure the EDP commit and tier in exchange for a fresh term or an expanded scope. The independent advisor frames the case for the renegotiation.

How Redress engages on the EDP tier

Redress runs the EDP tier review as part of the AWS renewal engagement. The work pulls the spend curve, benchmarks the tier against comparable estates, and represents the buyer through the AWS commercial cycle. The deliverable is the tier envelope, the residual clause map, and the multi year savings forecast.

Read the related Vendor Shield, the Renewal Program, the Benchmark Program, the Software Spend Assessment, the Benchmarking framework, the about us page, the management team page, the locations page, and the contact page.

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5 to 34%
EDP discount band
$1m to $100m+
Commit tier range
1 to 5 years
Term length range
500+
Enterprise clients
100%
Buyer side

We benchmarked the AWS account team's first quote against eight comparable estates at the same commit tier. The renewal landed 5 percentage points deeper on the headline and added a 75 percent marketplace pass through that captured the third party software pipeline already in motion.

Head of Cloud Procurement
Global manufacturing group
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