An AWS Enterprise Discount Program, or EDP, is a private agreement in which you commit to spend a minimum amount on AWS over a multi year term, typically one to five years, in exchange for a percentage discount that applies across most of your AWS usage. The discount tier rises with the size and length of the commitment, but the real negotiation is not the headline percentage; it is the commitment number itself, the clauses around shortfall and ramp, and what counts toward the commitment. The discount stacks on top of Savings Plans and Reserved Instances rather than replacing them, so an EDP is a layer over your commitment strategy, not a substitute for it. The leverage that wins a better tier is a credible forecast, benchmark data, timing against AWS quarter ends, and a real option to place workloads elsewhere.
Here is how the EDP works, what moves the tier, and which clauses to negotiate.
How does an AWS EDP actually work?
You and AWS agree a total spend commitment over the term and a discount that applies to eligible usage. Most AWS spend counts toward the commitment, including usage already discounted by Savings Plans, but some categories such as certain Marketplace purchases may count differently, which is itself negotiable. If you spend more than the commitment, you keep the discount on the excess; if you spend less, you are usually still liable for the shortfall, which is the central risk. The discount is private and tiered, so two customers with the same bill can pay very different effective rates depending on how well they negotiated.
What actually moves the discount tier?
Four things. A credible, defensible forecast that shows AWS a growing commitment it wants to lock in. Benchmark data on what comparable enterprises achieve, so you are not negotiating blind. Timing: AWS sales teams carry quarterly and annual targets, and a deal that closes when they need it carries more give. And a genuine alternative: a real, costed option to move a workload to Azure, GCP, or OCI changes the conversation from whether you will commit to how much AWS will discount to keep you. Walking in with a forecast you cannot defend is the fastest way to a thin discount and an oversized commitment.
Which clauses should you negotiate before signing?
| Clause | Why it matters | What to push for |
|---|---|---|
| Commitment size | A shortfall is still owed | Size to a conservative forecast, not the optimistic one |
| Ramp schedule | Front loaded commitments strain early years | Back load the ramp to match real growth |
| Shortfall terms | Defines your downside | Carry forward or true up options, not pure forfeiture |
| What counts | Determines how easily you meet it | The broadest eligible spend, including Marketplace |
| Term length | Longer term, deeper discount, more lock in | Match term to forecast confidence |
Size the commitment to a forecast you would defend in front of your CFO, because the shortfall clause means an optimistic number is a bill you pay either way.
A worked example
A scaling fintech was offered an EDP sized to its aggressive growth plan, with a front loaded ramp and a deep headline discount. Modelled against a conservative forecast, the commitment was likely to fall short in year two, turning the discount into a penalty. Renegotiating to a smaller commitment with a back loaded ramp, broader eligible spend, and a true up option, supported by a costed plan to run a new workload on another cloud, held nearly the same discount with a fraction of the shortfall risk. It was part of the program that left the company 41 percent lighter on cloud spend. Figures are verified against billing data and anonymised.
Frequently asked questions
What is an AWS Enterprise Discount Program?
What happens if you do not meet an EDP commitment?
How do you get a better EDP discount?
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