AWS

What is AWS EDP ? – AWS Enterprise Discount Program

The AWS Enterprise Discount Program (EDP) is:

  • Prepaid Commitment Model: Customers commit to a specific usage amount for AWS services.
  • Discounted Pricing: Offers significant discounts over standard pay-as-you-go rates.
  • Customized Plan: Tailored to the organization’s specific AWS usage and needs.
  • Long-Term Agreement: Typically involves multi-year commitments.

Understanding AWS EDP

aws edp

AWS EDP, or Amazon Web Services Enterprise Discount Program, is a savings program tailored for enterprise cloud users with a demonstrated history of high commitment.

This program offers a flat discount on AWS user fees, making it an attractive option for businesses looking to optimize their cloud costs.

The AWS EDP program promotes long-term alliances that reward consistent and high-volume AWS usage. It’s a win-win situation where AWS maximizes commitments, and customers benefit from economic scaling with AWS EDP discounts.

Eligibility for AWS EDP

To be eligible for AWS EDP, customers must demonstrate a history of spending $1 million or more on AWS services or committing to doing so.

The discount rates vary, but for a $1+ million annual commitment, the discount rate may lie around 9 percent for the standard AWS on-demand pricing model.

The AWS EDP program covers the majority of AWS solutions and professional services across all AWS regions. It’s best suited for businesses that are certain about future service utilization and spending needs.

Five scenarios where an organization should consider AWS EDP

  1. High Predictable Usage: Organizations with consistent and high cloud usage ensure they fully utilize the EDP benefits.
  2. Cost Efficiency Goal: For companies aiming to maximize cost savings over a long-term period.
  3. Stable Operations: Enterprises with stable and predictable growth, making long-term commitments feasible.
  4. Budget Certainty: Organizations that prefer fixed budgets for cloud spending to facilitate financial planning.
  5. Scale-Up Plans: Businesses planning a significant expansion of their cloud infrastructure that can benefit from discounted rates under EDP.

Pros and Cons of AWS Enterprise Discount Program (EDP)

Pros and Cons of AWS Enterprise Discount Program

Pros:

  1. Cost Savings: Offers significant discounts on AWS services, which are beneficial for heavy usage.
  2. Predictable Spending: Enables better budget planning with fixed pricing.
  3. Customized Commitments: Flexibility to negotiate terms based on specific needs.

Cons:

  1. Long-term Commitment: Requires multi-year contracts, reducing flexibility.
  2. Upfront Payment: Involves substantial initial investment.
  3. Underutilization Risk: If the committed usage level is not met, it may waste resources.

Negotiating an AWS Enterprise Agreement

Negotiating an AWS Enterprise Agreement

Qualifying for EDP is not that tough. However, realizing AWS’s full potential will be a difficult task.

Here are some strategies for negotiating an AWS enterprise agreement:

  1. Analyze your past AWS expenses and forecast future spending.
  2. Show AWS the value your company will bring by committing to long-term purchases.
  3. Forecast your AWS cloud requirements accurately.
  4. Consolidate the AWS budget if additional AWS cloud users are in your immediate association.
  5. Hone your negotiation skills; show AWS why they would not like to lose you!

Strategies for Securing Better Discounts from AWS

Several factors can influence your AWS EDP contract, potentially leading to better discounts.

Here are some key considerations:

  • Prepayment: Although AWS no longer requires prepayment, they may offer additional discounts for partial or full prepayment. This can be a strategic move to secure better rates.
  • AWS Marketplace: Your spending on the AWS Marketplace can partially count towards your AWS EDP commitment value. However, it’s important to note that this spending typically cannot be discounted at the EDP rate.
  • Projected Future Spending: Do you have the capacity to migrate existing on-premise services to AWS (or another cloud)? If so, this could potentially enhance your negotiation power for future contracts. The more you plan to use AWS services, the better discounts you might secure.
  • Support Pricing and Services: AWS mandates that EDP customers enroll in the AWS Enterprise Support program for the duration of the EDP contract. This requirement allows you to negotiate and clarify what you receive through AWS support throughout the EDP contract period.

By understanding these variables and leveraging them effectively, you can potentially secure better discounts and make the most of your AWS EDP contract.

Remember, every penny saved is a penny earned!

Alternatives to AWS Enterprise Discount Program (EDP) include:

Alternatives to AWS Enterprise Discount Program
  1. On-Demand Pricing: Pay-as-you-go model, ideal for unpredictable or fluctuating workloads.
  2. Reserved Instances: Upfront payment for a fixed term in exchange for a lower hourly rate.
  3. Spot Instances: Utilize unused AWS capacity at lower prices, which is suitable for flexible, non-critical applications.
  4. Savings Plans: Flexible pricing model offering lower prices in exchange for a commitment to consistent usage over a 1 or 3-year period.
  5. Multi-Cloud Strategy: Diversifying cloud providers to leverage different pricing models and avoid vendor lock-in.

Each option has its unique advantages and considerations, depending on an organization’s specific needs and usage patterns.

Alternatives to AWS EDP

If you do not qualify for the AWS EDP, there are other programs you can explore:

  1. AWS Partner Opportunity Acceleration Program (POA)
  2. AWS Private Pricing Term Sheet (PPTS)
  3. AWS Migration Acceleration Program (MAP)
  4. Other AWS Programs include AWS Savings Plan, Volume Discount, Dedicated Hosts, and others.

FAQs AWS EDP

What is AWS EDP?

AWS EDP, or Amazon Web Services Enterprise Discount Program, is a savings program designed for enterprise cloud users with a demonstrated history of high commitment.

Who is eligible for AWS EDP?

Customers with a history of spending $1 million or more on AWS services or a commitment to do so in the future are eligible for AWS EDP.

How can I negotiate an AWS enterprise agreement?

You can negotiate an AWS enterprise agreement by analyzing your past AWS expenses, forecasting future spending, showing AWS the value your company will bring by making a long-term purchase commitment, predicting your AWS cloud requirements accurately, and consolidating the AWS budget if there are any additional AWS cloud users in your immediate association.

What are the alternatives to AWS EDP?

Alternatives to AWS EDP include AWS Partner Opportunity Acceleration Program (POA), AWS Private Pricing Term Sheet (PPTS), AWS Migration Acceleration Program (MAP), and other AWS Programs like AWS Savings Plan, Volume Discount, Dedicated Hosts, and several others.

What is the discount rate for a $1+ million annual commitment in AWS EDP?

For a $1+ million annual commitment, the discount rate may lie around 9 percent for the standard AWS on-demand pricing model.

Extended FAQ

FAQ on AWS Enterprise Discount Program (EDP)

  1. How do I apply for the AWS Enterprise Discount Program?
    • To apply for AWS EDP, contact an AWS representative or your account manager to discuss your eligibility and the application process.
  2. What is the minimum spending commitment required for AWS EDP?
    • AWS does not publicly disclose specific minimum spending commitments for EDP as they can vary based on the agreement; it’s typically suited for large-scale cloud users.
  3. Can nonprofit organizations benefit from AWS EDP?
    • Yes, nonprofit organizations can avail themselves of AWS EDP benefits if they meet the spending and usage criteria similar to those of other enterprise customers.
  4. Are AWS EDP discounts applied automatically to all AWS services?
    • Discounts are generally applied to a wide range of AWS services, but the exact services and discount rates depend on your negotiated agreement.
  5. How long do AWS EDP agreements last?
    • AWS EDP agreements typically range from one to several years, depending on the terms negotiated between AWS and the enterprise.
  6. Can I renegotiate my AWS EDP if my usage significantly increases?
    • Enterprises can renegotiate their AWS EDP agreements if their usage and spending needs change significantly.
  7. What happens if I don’t meet my committed spend in AWS EDP?
    • If you don’t meet your commitment to spending, you may be subject to paying the difference or renegotiating the terms, depending on your agreement with AWS.
  8. Does AWS offer any tools to help manage and optimize EDP usage?
    • AWS provides tools and services, like AWS Cost Explorer and AWS Budgets, to help manage and optimize your EDP usage and costs.
  9. Are there any case studies available on how organizations benefited from AWS EDP?
    • Specific case studies may not be readily available on the AWS site, but AWS account managers can provide examples and insights on how similar organizations have benefited.
  10. Can the AWS EDP be combined with other AWS discount programs?
    • It depends on the specifics of your AWS agreement. In some cases, AWS EDP can be combined with other discount programs like AWS Savings Plans, but details should be discussed with an AWS representative.

AWS Negotiation Service

If you’re seeking assistance negotiating AWS Enterprise Agreements, consider contracting with us for our AWS Negotiation Service.

  • Expert Negotiation Support: Offering expert advice and strategies for negotiating terms with AWS.
  • Cost Management: Focus on optimizing costs within the AWS framework.
  • Contract Tailoring: Assistance in customizing agreements to suit specific organizational needs.
  • Risk Mitigation: Identifying and addressing potential risks in AWS contracts.
  • Long-term Planning: Advising on future scalability and flexibility strategies within AWS agreements.
  • Contact for Services: Contact for tailored assistance and in-depth guidance on negotiating AWS Enterprise Agreements.

Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, enhancing organizational efficiency.