cloudcostdown.euAWS EDP · Enterprise Discount Program Guide
AWS Enterprise Discount Program (EDP): Is It Worth It?
The AWS EDP offers 10–25% discounts on all services for multi-year spend commitments. For companies spending $1M+/year on AWS, it’s worth evaluating - but only after you’ve optimized your baseline spend. Locking in an EDP on inflated costs locks in the waste.
EDP vs. Savings Plans: Key Differences
AWS Savings Plans / Reserved Instances
- Self-service - purchase in console
- 17–66% discount on specific compute
- 1–3 year terms, no minimum spend
- No negotiation required
- -Only covers compute (EC2, Lambda, Fargate)
- -Doesn’t cover S3, RDS, data transfer
AWS EDP
- 10–25% off ALL AWS services
- Covers S3, RDS, data transfer - everything
- Stacks on top of Savings Plans and RIs
- -Requires minimum spend commitment
- -Multi-year term (1–3 years)
- -Requires AWS account team negotiation
Critical advice
Optimize before you commit. If you sign an EDP based on your current $200K/month AWS spend, then find and fix 30% waste in the first month, you’ve committed to $200K/month on a $140K/month reality. Do the audit first, implement the savings, then negotiate EDP on your optimized baseline. The 30% optimization doesn’t disappear - it comes off the top before the EDP discount applies.
Frequently Asked Questions
What is the AWS Enterprise Discount Program (EDP)?
The EDP is a private pricing agreement where AWS offers a percentage discount (typically 10–25%) off all services in exchange for a minimum spend commitment over 1–3 years. Discounts stack on top of Savings Plans and Reserved Instances. Most relevant for companies spending $1M+/year on AWS.
Who qualifies for the AWS EDP?
AWS doesn't publish strict thresholds, but EDP conversations typically start at $500K–$1M/year in AWS spend. Below that, Savings Plans and Reserved Instances provide similar or better economics without the commitment risk. At Series C with $100K+/month AWS spend, EDP is worth exploring.
What discount can I expect from an EDP?
Typical EDP discounts range from 10% to 25% off list price, depending on commitment size, term length, and AWS market conditions. Larger commitments and longer terms yield higher discounts. AWS support tier and services mix also factor into negotiations.
What are the risks of an EDP?
The main risk is over-commitment: if your AWS spend decreases (due to optimization, architectural changes, or business slowdown), you still owe the committed amount. Before signing an EDP, complete your cost optimization work so your baseline is your optimized spend, not your current inflated spend.
How do I negotiate an AWS EDP?
Start with a competitive offer or AWS account team engagement. Get quotes from other cloud providers (Azure, GCP) - AWS responds to competitive pressure. Work with an AWS partner or advisor who has EDP negotiation experience. Always negotiate the ramp period (time to reach full commitment) and exit clauses.
Should I optimize my AWS costs before or after signing an EDP?
Always optimize first. Signing an EDP on your current (unoptimized) spend locks you into a commitment based on waste. If you reduce your bill by 30% through optimization, your EDP commitment baseline is 30% lower - saving you even more. Complete the audit, implement the findings, then approach AWS about EDP.