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AWS Contract Negotiation ยท Case Study

AWS Contract Negotiation for a Global Technology Company

How Redress Compliance delivered $8.5 million in savings over three years for a global technology company with 15,000+ employees โ€” through comprehensive AWS usage analysis, cost optimisation, industry benchmarking, and strategic contract renegotiation that reduced annual cloud costs by 35%.

Case Studyโ€ขAWS Contract Negotiationโ€ขGlobal Technology ยท Multi-Regionโ€ขJanuary 9, 2025
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$8.5M
Total Savings
Over 3-year contract term
35%
Cost Reduction
Annual AWS costs
15K+
Employees
Multi-region operations
$2.1M
Waste Eliminated
Unused/underutilised resources

Engagement Snapshot

Client
Global technology company, 15,000+ employees
Industry
Technology (multi-region operations)
Vendor
Amazon Web Services (AWS)
Engagement Type
Contract Negotiation & Cost Optimisation
Services
Compute, storage, data transfer, dev/test, mission-critical workloads
Key Issues
Escalating costs, over-provisioning, usage opacity, inflexible terms
Total Savings
$8,500,000 over 3 years
Cost Reduction
35% annual AWS cost reduction

The Challenge

A global technology company with over 15,000 employees and operations across multiple regions engaged Redress Compliance to assist in renegotiating its AWS agreement. The company relied heavily on AWS for its cloud infrastructure, supporting applications ranging from development and testing environments to mission-critical workloads for its clients.

However, the existing agreement presented significant challenges: rapidly escalating costs due to increased consumption across multiple business units, lack of transparency in usage patterns leading to inefficiencies and over-provisioning, limited flexibility to adapt to evolving business needs, and difficulty accessing competitive pricing and additional value through enterprise-level commitments. The company needed expert guidance to optimise its AWS investment, reduce costs, and secure favourable terms for future scalability.

Technology companies running mission-critical client workloads on AWS face a unique cost optimisation challenge: rapid, unpredictable consumption growth across multiple teams and services. AWS's consumption-based pricing model means that without active governance, cloud costs can escalate 40โ€“60% year-over-year as engineering teams independently provision resources. The complexity of AWS's service catalogue โ€” with hundreds of instance types, storage tiers, data transfer pricing zones, and discount instruments โ€” creates an environment where even sophisticated technology companies routinely overpay. Reserved Instances and Savings Plans are powerful cost reduction tools, but committing to the wrong mix can lock in waste for years. In our experience, technology companies that renegotiate their AWS Enterprise Discount Programs without independent advisory leave 25โ€“40% in achievable savings on the table.

The Process

1

Usage Analysis

Conducted a comprehensive review of the company's entire AWS estate:

  • Analysed AWS usage across all departments and business units
  • Identified overprovisioned resources, unused services, and opportunities for cost optimisation
  • Mapped key growth areas and identified services critical for upcoming business initiatives
  • Quantified the financial impact of orphaned resources and idle instances
2

Cost Optimisation Recommendations

Developed a detailed optimisation roadmap to reduce baseline costs:

  • Proposed rightsizing instances, transitioning workloads to more cost-effective AWS services, and utilising Reserved Instances (RIs) and Savings Plans
  • Suggested retiring unused resources and consolidating fragmented deployments
  • Recommended adopting automated tools to monitor and optimise cloud spending in real time
  • Quantified potential savings from each optimisation lever
3

Benchmarking

Leveraged Redress Compliance's proprietary benchmark database for competitive positioning:

  • Compared the company's AWS costs and terms against similar technology organisations
  • Highlighted discrepancies in pricing and terms across compute, storage, and data transfer
  • Identified opportunities for improved discounts and service offerings
  • Built evidence-based pricing targets for the renegotiation
4

Negotiation Strategy Development

Created a data-driven negotiation strategy for maximum impact:

  • Developed strategy focused on achieving deeper discounts, increased flexibility, and additional value through enterprise-level commitments
  • Set clear objectives for pricing protections, spending commitments, and access to new AWS services
  • Modelled multiple commitment scenarios to identify optimal spend/discount trade-offs
5

Negotiation and Contract Realignment

Executed the negotiation strategy to secure optimal terms:

  • Engaged with AWS account representatives to present findings and advocate for improved pricing
  • Secured enhanced discounts on key services including compute, storage, and data transfer
  • Negotiated a flexible enterprise agreement allowing growth and shifting business priorities
  • Obtained price protections for future service adoption and expansion
6

Implementation of Governance Framework

Established long-term governance to sustain savings:

  • Established governance processes to monitor AWS usage and ensure ongoing cost optimisation
  • Delivered training sessions to internal teams on effective cloud resource management
  • Implemented a regular review process to evaluate agreement alignment with evolving needs
  • Created automated alerting for cost anomalies and over-provisioning

The Results

MetricDetail
Annual Cost Reduction35% reduction in AWS costs
Total Savings (3-Year Term)$8,500,000
Unused Resources Eliminated$2,100,000 in waste removed
Contract FlexibilityDynamic resource scaling to match fluctuating demand
Price ProtectionFuture expansion and new service adoption costs locked in
Resource UtilisationStreamlined allocation and improved utilisation rates
GovernanceReal-time monitoring and automated cost optimisation tools
TransparencyEnhanced visibility into usage patterns across all business units

Savings Breakdown

$8.5M
Total Contract Savings
Over the 3-year term
$2.1M
Waste Eliminated
Unused & overprovisioned resources
35%
Annual Cost Reduction
With dynamic scaling secured
"Redress Compliance's expertise in AWS negotiations delivered exceptional value. Their strategic approach helped us achieve significant cost savings while aligning our contract with our operational and innovation goals. Their support was critical in optimizing our cloud strategy."
CTO โ€” Global Technology Company

Technology companies with multi-region AWS deployments and mission-critical client workloads are among the most complex โ€” and most over-provisioned โ€” cloud customers. The combination of comprehensive usage analysis across all business units, rightsizing and Reserved Instance/Savings Plan optimisation, industry benchmarking against peer technology companies, and evidence-based enterprise discount negotiation typically delivers 30โ€“40% reductions in overall AWS costs. AWS's consumption-based model rewards organisations that actively manage their cloud estate โ€” technology companies that renegotiate without independent advisory pay list-rate premiums across hundreds of services, miss optimal commitment structures, and lack the governance frameworks needed to sustain savings over time.

How Redress Compliance Can Help

As a fully independent advisory firm, Redress Compliance provides objective AWS contract negotiation, cost optimisation, and cloud governance advisory โ€” with no commercial relationship with Amazon.

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Redress Compliance provides expert AWS contract negotiation advisory โ€” with deep benchmarking data from enterprise cloud deals and specialists who understand AWS's pricing, discount instruments, commitment structures, and negotiation tactics. We've saved technology companies, financial services firms, and enterprises across the globe millions through optimised AWS Enterprise Discount Programs and Savings Plans.

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Fredrik Filipsson

Co-Founder @ Redress Compliance

Fredrik Filipsson brings over 20 years of experience in enterprise software licensing, having worked directly for IBM, SAP, and Oracle before co-founding Redress Compliance. Over the past 11 years as an independent advisor, he has helped more than 500 enterprise clients โ€” including numerous Fortune 500 companies โ€” optimise costs, avoid compliance risks, and secure favourable terms with major software vendors.

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