What is an AWS Enterprise Discount Program?

Categories: Cloud Cost Optimization
Date: April 28, 2023

The AWS Enterprise Discount Program is a pricing model designed to help businesses save money on cloud infrastructure costs. Companies that meet specific criteria can participate in the program and receive discounts on their AWS spend based on the size and term of their commitment.

What is the AWS Enterprise Discount Program?

The AWS Enterprise Discount Program is an excellent option for businesses committed to using AWS for their cloud infrastructure needs and looking to save money on their long-term AWS spend. By committing to AWS through the program, companies can take advantage of significant discounts and other benefits that can help them optimize their cloud infrastructure costs.

The program rewards greater spending with greater savings; the discount percentage varies depending on the commitment size. For example, a commitment of $500,000 over 12 months might provide a discount of 5%, while a commitment of $50 million over 36 months might provide a discount of 15% or more.

To qualify for the program, companies must commit to a minimum of $500,000 in annual cloud infrastructure spending. The program incentivizes companies to make longer-term commitments to AWS and increase growth. Discounts increase with the length of the commitment and projected growth in spend.

The criteria for eligibility to join an AWS Enterprise Discount Program:

Cloud Infrastructure Spend:

The AWS Enterprise Discount Program is designed for companies with significant cloud infrastructure spend on AWS, typically hundreds of thousands of dollars per year or more.

Commitment:

Businesses need to make a minimum commitment to AWS based on the pricing tier they aim to achieve. The company’s expected cloud infrastructure will determine this commitment over a specific period, typically a 12, 24, or 36-month period.

Contract Type:

AWS Enterprise Discount Program works with 1-year or multi-year contracts. The longer the agreement, the more the opportunity for discounts.

Account Structure:

Company accounts must use consolidated billing in AWS Organizations to track spending against EDP commitment in a single-payer account.

Support Requirement:

By default, participants must purchase Enterprise Support through AWS to qualify for an EDP. There are exceptions for companies that can demonstrate their own or other third-party support capacities, the Enterprise On-Ramp support program for companies whose spending and infrastructure needs don’t yet justify Enterprise support.

Meeting these criteria can make a company eligible to participate in the AWS Enterprise Discount Program and take advantage of potential significant discounts and other benefits. In addition to the discounts on AWS services, the program offers businesses access to various other benefits, such as dedicated partners (such as Oak Rocket), training and certification, and support options.

How does the AWS Enterprise Discount Program work?

The AWS Enterprise Discount Program has different pricing tiers with slightly increasing discount levels, commitment levels, and requirements as you spend more. Here are the minimum commitment levels:

Tier 1:

Companies make a minimum commitment of $500,000 annually over a 12 months.

Tier 2:

For companies making a minimum commitment of $1 million annually over 12 months.

Tier 3:

Companies make a minimum commitment of $5 million annually over 36 months.

It’s important to note that discounts and commitment levels can vary based on specific business situations. Additionally, companies that make longer-term commitments or who sign larger contracts can negotiate even better deals directly with AWS.

AWS Marketplace and Enterprise Discount Program integration

The advantage of using Marketplace with an EDP is that your IT spend through Marketplace counts toward your EDP commit, making it easier to feel confident you can make sure you can meet your commitment level as your AWS spend fluctuates. The AWS Marketplace is a valuable resource for businesses using AWS services. The Marketplace can help companies optimize their software usage and costs while simplifying deployment and management by providing a curated selection of software solutions and flexible pricing options.

Here's a recap of the AWS Enterprise Discount Program and why businesses should consider the program:

The AWS Enterprise Discount Program is a pricing model designed to help businesses save money on cloud infrastructure costs. The program discounts companies based on the size and term of their commitment, with four pricing tiers available. Companies generally need to meet specific criteria related to size, commitment, and infrastructure spending to qualify.

There are several reasons why businesses should consider the AWS Enterprise Discount Program, including:

Cost Savings:

By participating in the program, businesses can take advantage of significant discounts on their AWS infrastructure, resulting in significant savings over time.

Long-term budgeting:

The program encourages longer-term commitments to AWS services, which can help businesses budget more effectively by providing predictable infrastructure costs over a longer period of time.

Greater operational efficiency:

By reducing infrastructure costs and streamlining software management, the program can help businesses reduce the time and effort required to manage their AWS usage, freeing up resources for other priorities.

Overall, the AWS Enterprise Discount Program is an excellent option for businesses looking to save money on their AWS infrastructure while gaining access to various support and resources.

By making a longer-term commitment to AWS through the program, businesses can take advantage of significant discounts, increased budgeting predictability, and streamlined infrastructure management, all of which can help businesses operate more efficiently and effectively.