On Demand Session  |  Negotiating the Big 50

Negotiating an AWS EDP

The AWS negotiation looks like a discount negotiation and is actually a sizing negotiation. A twenty minute session on the commitment tiers, the ramp, funding that does not compete with your rate, private pricing on the services you never named, Marketplace retirement, and the shortfall that decides whether any of it was worth it.

19:25 minutes12 chaptersDaniel, Senior Advisor and Claire, Expert AnalystFree, no registration

About this session

Everyone in the market still says EDP. What AWS will actually send you is a Private Pricing Agreement, and the commercial mechanics are the same: you commit to a minimum spend over a term, and the discount scales with the size of that commitment in steps rather than smoothly. Roughly five, ten, fifteen and twenty percent as the commitment climbs, with ten to twenty percent granted at around ten million dollars a year. This session is aimed at organisations spending five to fifty million dollars a year with AWS.

The percentage is the easy part, and it is broadly a function of arithmetic. What separates a good outcome from a bad one is whether the commitment you signed matches the consumption you actually have. The upside of overcommitting is a few points of discount. The downside is paying in full for capacity you never used, with an early exit leaving you liable for most of what remains. Those are not the same size, and an oversized commitment quietly changes your engineering incentives from running efficiently to consuming.

The session also covers the three places customers routinely leave money behind: the migration, enablement and adoption funding that sits in a different budget from the discount and therefore does not compete with your rate; private pricing of five to fifteen percent on the concentrated services most customers never identify because the first proposal contains a single blended number; and the roughly quarter of the commitment that can be retired through qualifying AWS Marketplace purchases, which for many organisations means software they were buying anyway.

Session agenda

Every line jumps the player to that point.

  • 0:00 Welcome, and what this session coversEDP or PPA, who this is for, and the shape of the agreement.
  • 1:26 How the discount scalesFive to twenty percent by commitment size, and why it stacks with Savings Plans rather than replacing them.
  • 3:48 Term and the rampWhy AWS loves length, how the ramp makes it survivable, and what has to be attached.
  • 5:34 Credits and fundingA different budget with a different owner, and why asking does not cost you rate.
  • 7:49 Private pricingService specific rates on the concentrated spend the blended number hides.
  • 9:13 Marketplace retirementA quarter of the commitment met by software you already buy, and the 2025 eligibility change.
  • 11:03 The shortfallTrue ups, exit liability, and the second order effect on how you run the estate.
  • 13:17 Where the leverage really isArming the account team, and why one undecided workload beats a bluff about the whole estate.
  • 15:31 The playbookEight moves.
  • 16:42 TimingSix months of preparation beats a well timed quarter end.
  • 18:00 The numbersFour figures to hold on to.
  • 18:31 The bottom lineA sizing negotiation wearing a discount negotiation's clothes.

The model. Redress Compliance works on contingency. You negotiate with the vendor first. When you have gotten everything you can get, bring the deal to Redress and we take 25 percent of what we save you beyond your best number. Nothing saved, nothing paid. Talk to us.

Chapters

  • 0:00Welcome, and what this session covers
  • 1:26How the discount scales
  • 3:48Term and the ramp
  • 5:34Credits and funding
  • 7:49Private pricing
  • 9:13Marketplace retirement
  • 11:03The shortfall
  • 13:17Where the leverage really is
  • 15:31The playbook
  • 16:42Timing
  • 18:00The numbers
  • 18:31The bottom line

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