Eligibility for an AWS PPA
To be eligible for an AWS PPA, an organization generally needs to meet the following criteria. These are not rigid rules but common benchmarks, as negotiations happen behind closed doors:
- Annual AWS spend: Typically $300,000 or more in yearly AWS billing
- Cloud operations growth: A commitment to grow AWS usage and spend by around 20% year over year
- AWS Marketplace purchases: Consistent software spending in the thousands of dollars strengthens the negotiation position
- AWS Enterprise Support: Enrollment is mandatory across all AWS accounts. Partner-led support alone does not qualify
Additionally, AWS requires a multi-year commitment, usually ranging between 3 and 5 years.
Differences Between AWS PPA and AWS EDP
Beyond the name change from AWS EDP (Enterprise Discount Program) to PPA, there is one key difference:
- EDP primarily covered cross-service discounts
- PPA covers both cross-service discounts and service-specific discounts
Benefits of AWS PPA
- Customized discounts tailored to your usage profile
- Broader coverage across multiple AWS services
- Predictable long-term cloud cost savings through committed spend
- Flexibility beyond RIs and Savings Plans
- Improved negotiation leverage at higher spend tiers
Challenges with Getting an AWS PPA
- Complex negotiation structure: Requires detailed forecasting, legal review, and multiple stakeholder approvals
- Discount-focused, not cost control: PPAs reduce rates but do not fix architectural inefficiencies
- Large commitment period: Compared to RIs and Savings Plans, AWS PPAs lock you in for longer durations
- Forecasting risk: Overcommitting can lead to unused spend and reduced ROI
Best Practices to Maximize Value from an AWS PPA
- Have an optimized AWS setup: Conduct an AWS Well-Architected Review to eliminate inefficiencies before negotiating
- Gain accurate spend forecasts: Achieve this through complete AWS infrastructure and cost visibility, and analysis of historical billing trends
- Consolidate accounts: Higher consolidated spend strengthens AWS’s incentive to offer better discounts
- Align commitments with business growth plans: Avoid committing purely for discounts
- Combine PPA with RI and Savings Plans: Layering discounts delivers maximum cost efficiency
Benefits of Partner-Led Negotiation vs Self-Negotiation
AWS PPA negotiations are complex, and working with experienced partners is often recommended:
- Negotiation experience: Partners understand AWS negotiation patterns, caveats, and relationship dynamics
- Pricing model awareness: They evaluate AWS PPA discounts alongside RIs, Savings Plans, and Marketplace spend
- Benchmark knowledge: Having seen multiple deals, partners know what is realistic and competitive
- Pre-negotiation guidance: Companies like CloudKeeper help define the right commitment level so you only commit to what you truly need
Frequently Asked Questions
Q1. Is the entire AWS PPA commitment required upfront?
Not necessarily. Some agreements may include partial upfront components, but most are pay-as-you-go.
Q2. Can AWS PPAs be combined with Reserved Instances and Savings Plans?
Yes. PPAs stack with RIs and Savings Plans for deeper overall savings.
Q3. What happens if I fail to meet my committed spend?
Shortfalls may still be billed, reducing the effective value of the agreement.
Q4. Is a PPA suitable for startups or early-stage companies?
Generally no. PPAs are best suited for mature organizations with predictable, high AWS spend.
Q5. Does an AWS PPA apply to all AWS services?
Not always. Coverage depends on what is negotiated. Some PPAs apply broadly, while others include service-specific discounts.
Q6. Can an AWS PPA be modified after it is signed?
In most cases, no. PPAs are contractually fixed, although AWS may allow renegotiation in the event of exceptional business changes.
Q7. How long does the AWS PPA negotiation process usually take?
It can take several weeks to a few months, depending on the complexity, forecasting accuracy, and internal approvals.
Q8. Does an AWS PPA replace the need for ongoing cost optimization?
No. A PPA lowers unit costs, but continuous optimization is still required to control usage and avoid waste.
If you want, I can also rank these FAQs by buyer intent or tailor them for a FinOps or CXO audience.
