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An organization's dependence on cloud services, particularly as a key element of its expansion strategy, has become evident more than ever before. While cloud services facilitate rapid and efficient scaling, the associated costs escalate as the organization grows. Regardless of the company's scale, cloud management is crucial to avoid squandering finances and resources on underutilized cloud assets. One solution offered by AWS for organizations with growing cloud spends is their Enterprise Discount Program (EDP). 

What is AWS Enterprise Discount Program (AWS EDP)? 

The AWS Enterprise Discount Program (AWS EDP) is a cost-saving initiative tailored for organizations with substantial cloud usage. The AWS EDP is designed to provide considerable savings to companies based on their long-term commitment and usage of AWS services.

Eligibility for AWS EDP

Organizations depicting a minimum annual spend of USD 1 Million towards their AWS usage become eligible for an AWS enterprise discount program. They must also commit to a term in the range of 1 to 5 years and each subsequent year should reflect a higher commitment than the previous year. The AWS EDP facilitates sustainable scaling in return for a prolonged commitment from clients, typically ranging from 1 to 5 years.

The clients who commit more for a longer time get higher discounts in AWS EDP. So, three 1 year terms are less viable than a single 3-year commitment. Let us understand with an example.


From Table 1 and Table 2, we can see that the value of services consumed is the same in both cases but in Table 1, the client has to pay the difference for the underspend and buy additional services for the overspent. This overspent will be charged according to the on-demand pricing model which is relatively expensive.

For organizations who foresee significant growth in their AWS usage over the next 1-5 years and are certain about growing business needs, AWS EDP would be the way to go for them. 

Benefits of participating in AWS EDP

Participating in the AWS Enterprise Discount Program (AWS EDP) offers several benefits:

1. Discounted Rates: One of the primary advantages is the potential for cloud cost savings through the application of discounted rates. It provides a structured framework for organizations to receive significant cost savings on their AWS usage fees. Based on the customer's total annual commitment and their growth commitment over time, AWS EDP allows organizations to optimize their cost savings according to their specific usage patterns and growth trajectories.

2. Long-Term Commitment Incentives: AWS EDP is the program that encourages long-term commitments from customers, typically ranging from 1 to 5 years. Due to the commitment, higher discount rates are rewarded, incentivizing the organizations to engage in sustained partnerships with AWS.

3. Predicted Budgeting: Participants of EDP Amazon web services help organizations budget and plan for their cloud expenses over an extended period of time due to a more predictable pricing structure. You know exactly how much you'll be spending on AWS for the duration of the agreement, making budgeting and forecasting easier and more accurate. This stability can be highly valuable for CFOs and IT leaders.

4. Strategic Partnership with AWS:  By participating in AWS EDP, there is an enhanced collaboration, support and close partnership between the organization and AWS. Being an AWS EDP partner, the organizations demonstrate a strategic and long term commitment to AWS which unlocks additional benefits and resources.

5. Versatile Applicability: The discounts provided through the AWS EDP are applicable to a diverse range of AWS services. This flexibility allows organizations to utilize various cloud solutions while still reaping the benefits of cloud cost savings.

The right partner can help maximize your benefits from EDP

An AWS EDP partner can help enhance the benefits of EDP quite significantly:

1. Consultation for Optimized Commitments: Alignment of commitments with organizational goals is the top priority and an ideal AWS EDP partner can help you with that. Furthermore it is essential to determine the right commitment value. 

2. Enhanced Discounts and Commitment Flexibility: An AWS EDP partner can help negotiate better discounts and also lower the annual commitment. 

3. Tailored Reporting and Monthly Insights: An enterprise discount doesn’t necessarily close doors for further optimization. Partners can help provide customized usage reports along with recommendations for further cost optimization. 

4. Efficient Invoicing and Multi-entity Support: AWS EDP Partners can help facilitate invoicing from foreign entities, split invoices across different organizational entities, enable invoices in different currencies, and ensure compliance in financial reporting. 

5. Value Added Benefits: They deliver additional value added benefits without any additional cost, including Cloud FinOps consulting, cost audits, reservation management and access to cloud cost visibility platforms

AWS EDP partners have expertise in AWS and EDP collaboration and offer significant support during contract discussions, negotiating advantageous terms, and enhancing the contract for increased cost efficiency. EDP partners can additionally offer training and assistance to cloud engineers, enabling them to efficiently harness AWS services after joining the EDP. This support aims to expedite their setup process with minimal exertion and expenses. 

Secure Maximum discounts on EDP with CloudKeeper EDP+

CloudKeeper EDP+

There are a large number of FinOps partners available which can help in getting the maximum benefits from the already impressive EDP program

CloudKeeper EDP+ offers a number of benefits right from the contracting stage, providing intelligent and effective contract negotiations which lead to higher discounts and lower annual commitments. Furthermore CloudKeeper EDP+ provides a partner led Enterprise Support at a lower cost, It also provides a host of value added services such as free access to CloudKeeper Lens, the cloud cost visibility and recommendations platform, providing daily, weekly and monthly cost breakups, alerts through emails and Slack, and resource level break up. Additionally, CloudKeeper also provides FinOps audit and consulting services, Well-architected reviews and establishes Cloud FinOps KPIs and unit-economics. 

CloudKeeper is a one-stop solution for all your cloud cost optimization needs and guarantees instant cloud savings. Want to learn more? Book a free demo!

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