Your Ultimate Guide to AWS Enterprise Discount Program

As more and more businesses move their operations to the cloud, the importance of cost optimization has become increasingly critical. AWS (Amazon Web Services), one of the leading cloud service providers, offers an Enterprise Discount Program (EDP) to help businesses reduce their cloud computing costs. In this blog, we'll explore what an AWS EDP is, how it works, and the benefits it offers to businesses.‍

What is AWS EDP?

AWS EDP is a program that offers significant discounts to businesses that commit to using a certain level of AWS services over a specified period. Essentially, the program is a volume-based discount that rewards businesses that use a large amount of AWS services.

How does AWS EDP work?

To participate in AWS EDP, businesses must commit to using a minimum amount of AWS services over a specified period. The commitment period can range from one to five years, and the minimum usage amount can vary based on the business's specific needs.

Once a business commits to the program, AWS gives them a discount based on the number of services used. The discount can be up to 40% off the standard pricing, depending on the level of usage. AWS also offers businesses the ability to negotiate custom pricing if their usage levels are high enough.

Benefits of AWS EDP

There are several benefits to participating in AWS EDP, including:

1. Cost Savings: By committing to a minimum usage level, businesses can take advantage of significant discounts on their AWS services. This can result in significant cost savings over time, especially for businesses that use a large amount of cloud computing resources.
2. Custom Pricing: For businesses that use a large amount of AWS services, custom pricing is available. This can result in even greater cost savings and more predictable budgeting.
3. Predictable Costs: By making a commitment to use AWS for a set period of time, enterprises can better predict their AWS costs and budget accordingly.
4. Consolidated Billing: AWS EDP also offers consolidated billing, which makes it easier for businesses to manage their AWS costs. Instead of receiving multiple invoices for different services, businesses receive a single, consolidated bill for all of their AWS usage.
5. Support: AWS EDP participants also receive access to AWS's support services. This can be particularly valuable for businesses that need assistance with setting up and managing their AWS infrastructure.

While there are benefits to participating in the EDP, there are also potential risks to consider.

Here are some potential risks of the AWS EDP:

1. Overcommitting: Organizations may be tempted to commit to a higher level of AWS usage than they actually need in order to qualify for larger discounts. This can result in wasted resources and higher costs in the long run.
2. Limited flexibility: The EDP requires organizations to commit to a certain level of usage over a specific period of time, which may limit their ability to adjust their usage in response to changing business needs.
3. Lock-in: Organizations that commit to the EDP may be less likely to consider other cloud providers or technologies, which could limit their ability to take advantage of new and emerging technologies in the future.
4. Pricing changes: AWS reserves the right to change the terms of the EDP, including pricing and discount levels, at any time. This can result in unexpected costs for organizations that have committed to a certain level of usage.
5. Complexity: The EDP is a complex pricing model that requires careful analysis and planning to ensure that organizations are getting the best possible deal. This can be a time-consuming process that may require the involvement of multiple stakeholders.

It's important for organizations to carefully evaluate the potential risks and benefits of the AWS EDP before committing to the program. This may involve conducting a detailed analysis of their current and future AWS usage, as well as considering alternative pricing models and cloud providers.

What are the requirements for the AWS EDP?

To participate in the AWS EDP, an enterprise must meet the following requirements:

1. A minimum commitment to using AWS services for a set period of time, typically between one to five years.
2. A minimum level of AWS usage each month.
3. Payment of all AWS bills on time and in full.

How to Apply for AWS EDP

To apply for AWS EDP, businesses should contact their AWS representative or fill out the AWS EDP contact form on the AWS website. The representative will work with the business to determine the minimum usage amount and commitment period, and provide pricing information based on the business's needs.

How Cloudthread can help

Negotiating EDP spend for inefficient infrastructure is wasteful so companies want to make sure to 1) reduce cloud cost waste ahead of negotiation and 2) effectively forecast costs based on business growth.

Cloudthread can help companies implement AWS cost optimization best practices and reduce waste to ensure that when an EDP is negotiated it’s targeting efficient cloud spend.

Using unit economics Cloudthread can also help companies forecast their costs into the future based on business growth and negotiated an EDP accordingly.

Conclusion

AWS EDP can be a valuable tool for businesses looking to reduce their cloud computing costs. By committing to a minimum usage level, businesses can take advantage of significant discounts and more predictable budgeting. The program also offers consolidated billing and access to AWS's support services, making it easier for businesses to manage their AWS usage. If you're considering moving your business's operations to the cloud, AWS EDP is definitely worth exploring as a cost-saving measure.