Considerations for AWS EDP: Lightning Theatre Session at AWS re:Invent 2023
The shiny strip of Las Vegas bore testimony to yet another successful iteration of AWS re:Invent, the grand fest of AWS practitioners, industry leaders, and cloud enthusiasts alike. The 2023 edition was packed with over 50,000 attendees, covering groundbreaking keynote sessions, networking events, and so much more.
Generative AI (GenAI) was the highlight among a slew of other announcements by AWS. However, it wasn’t just AWS. Hundreds of vendors showcased their expertise in the Cloud and AI advancements in the palatial event hall.
CloudKeeper was a gold sponsor at AWS re:Invent 2023 and yet once again captivated numerous inquisitive attendees with meaningful discussions on the cloud FinOps Landscape and live demos and presentations around its FinOps and cloud cost optimization offerings. The energy was further amplified by the captivating lightning theater session on "AWS Enterprise Discount Program(EDP)”.
Lightning Theatre Session by Aman Aggarwal
CloudKeeper’s Business Head, Aman Aggarwal, delivered an exciting lightning theater session on "Considerations for using an AWS Enterprise Discount Program," unraveling the A to Z of enterprise cloud savings with AWS EDP on Day 2 of the event.
In this session, Aman explained the advantages and disadvantages of an AWS EDP, determining your ideal annual commitment amount and span, how to maximize the benefits of an EDP while retaining flexibility, and using CloudKeeper EDP+ for extended gains and flexibility.
Let us break down Aman’s session in detail below by understanding the nitty-gritty of AWS EDP and CloudKeeper EDP+. It would have been an astounding experience to hear from the man himself, but for those who missed it, here are the details of the session below.
CloudKeeper’s Relationship with AWS
Aman commenced his AWS: re:Invent 2023 session by introducing CloudKeeper. CloudKeeper has been an AWS Partner since 2013 and became a premier(highest) tier partner in 2018. AWS has more than 100k partners around the globe, out of which only less than 0.5% belong to the category of premier partners. CloudKeeper is a globally authorized channel reseller and one of the top 5 partners globally for the AWS Well-Architected partner program.
AWS Enterprise Discount Program(EDP)
Aman provided an overview of the AWS Enterprise Discount Program (EDP) which is specially designed and aimed to offer discounts to eligible customers on their overall AWS spending, provided they commit to a minimum annual consumption. The program is a win-win for both AWS and customers, as it promotes long-term alliances that consistently reward customers with high-volume AWS usage; thus maximizing commitments for AWS and better discounts for customers.
AWS EDP eligibility
The following could be listed as eligibility criteria for AWS EDP:
- Customers should have a minimum annual spend of $1 million.
- Annual commitment should be the same or greater than the current spend.
- Commitment for each subsequent year should be 10-20% higher than the current year’s spend.
- AWS Enterprise Support subscription is mandatory for all AWS accounts.
- AWS EDP requires a commitment of 1 to 5 years, the higher the better.
Key considerations for maximizing AWS EDP benefits
AWS EDP generally hinges on two factors - commitment value and the tenure of the commitment. As expected, the longer one commits to the program, the bigger the discount potential is. If the tenure of engagement and scale of AWS operations is predetermined to a certain extent, it will definitely pay to commit for the longest period possible to get the highest discount.
However, the annual commitment must exclude all the AWS EDP benefits including discounts, credits, private pricing etc. This is mostly a point of confusion among many companies. Again, accounts with different Sellers of Record( AWS Singapore, AWS Inc. US, AWS EMEA, etc.) cannot be consolidated under one AWS EDP.
What is allowed however is consolidating spends from multiple entities to sign a larger AWS EDP. This consolidation thus leads to higher benefits and improved cost-efficiency. Last, but not the least, ISV purchases via AWS Marketplace can offset up to 25% of the annual AWS EDP commitment. However, it's important to note that the AWS EDP is a firm commitment with no termination for convenience during the specified tenure.
Preparing for AWS EDP success
Before embarking on an AWS EDP journey, your cloud architecture and operations model should be optimized for cost savings and cloud efficiency. AWS EDP or not, cloud cost optimization is something that should be at the heart of every cloud-based organization. Committing to an under-optimized cloud system can only hurt your business profitability.
Several existing SaaS subscriptions and licenses can also be routed via the AWS Marketplace, which not only enhances your eligibility but also helps with additional discounts.
Many organizations also tend to go overboard with their spending projections. Overly conservative or optimistic estimates must be avoided and some buffer must mandatorily be maintained in the actual commitment. Aman emphasizes that realistic expectations are key; striking a balance between conservatism and confidence in commitments is advised. It's recommended to commit slightly lower (around 5-10%) than actual projections to account for uncertainties or unforeseen issues, ensuring a buffer for meeting AWS EDP commitments even in challenging circumstances,
There are also additional discount programs that can complement an AWS EDP such as Migration Acceleration Program (MAP), service-specific private pricing, etc. The key to success is to be comprehensive as far as cloud optimization is concerned.
Managing commitment shortfalls
Falling short of an AWS EDP commitment is something enterprises face from time to time. At the end of each contract year(not applicable at the end of the final year), any commitment shortfall is charged back, which is generally adjusted as credits in subsequent months to mitigate the impact. As such, companies must set up strict adherence to AWS EDP commitments and take proactive steps to mitigate any shortfalls.
Key actions include upfront payment of Reservations or Savings Plan to meet commitments. Additionally, as covered earlier, SaaS payments or even professional services payments can be routed via the AWS Marketplace, making it easier for businesses to meet the compliances.
Needless to say, enterprises must proactively communicate and collaborate with the AWS account manager and AWS EDP partner to seek guidance and possible amendments to mitigate the shortfall impact.
Collaborative Edge: How Partners Enhance AWS EDP
Partners play a crucial role in enhancing your Enterprise Discount Program (EDP) construct with Amazon in various ways. Firstly, partners bring valuable experience from working on multiple AWS EDP deals, offering insights into best practices and helping align commitment values with your business goals. Considering the complex nature of AWS EDP, a partner like CloudKeeper can help you with a multi-pronged approach to managing the commitments and running a successful and effective Enterprise Discount Program.
Key areas where an AWS EDP partner can significantly make an impact are:
- Determining the appropriate commitment value.
- Ensuring that commitments are aligned with organizational goals and projections.
- Providing improved AWS EDP discounts and lower annual commitments.
- Providing customized reports/monthly invoices and recommendations for cost optimization.
- Invoicing and compliance-related modalities and workflows.
- Deliver value-added benefits without additional costs, such as AWS cost optimization suggestions, consulting, professional services, cost audits, reservation management, and access to a cost governance platform.
- Enhance cost-efficiency and overall value through supplementary services.
As an AWS partner, we have helped over 30 customers in enhancing their AWS Enterprise Discount Program with CloudKeeper EDP+.
One of the key highlights of Aman’s session at AWS re:Invent 2023 was that with CloudKeeper EDP+, enterprises can avail of even greater discounts at lower annual commitments. More than qualifying, negotiating for a benefit-driven AWS EDP contract is a tough job. With CloudKeeper EDP+, you can land a winning AWS EDP contract, laden with higher savings at lower commitments. On top of that, you get access to Partner-led Enterprise Support at a much lower cost compared to direct AWS support.
With CloudKeeper EDP+, you also get onboarded to our comprehensive AWS cost optimization solution, CloudKeeper AZ, for many other advantages over and above the AWS EDP Discounts. You also get complimentary access to our flagship cloud visibility platform Cloudkeeper Lens and free AWS Well-Architected Reviews that will benchmark your AWS infrastructure to the highest level of Cloud standards. It’s a win-win.
The comprehensive breakdown of AWS EDP, coupled with the unveiling of CloudKeeper EDP+, garnered significant attention, marking the session as a highlight. If you'd like to watch the full session, you can view it here.
To delve deeper into how CloudKeeper EDP+ enhances your AWS EDP, feel free to schedule a session with our team.