Published: 17 April 2024
Sourcing, procurement and vendor management leaders negotiating AWS private pricing agreements are challenged to balance AWS’S strategic priorities, such as growth and longer-term commitments, with realistic multiyear forecasting to achieve optimum discounts or contractual concessions.
AWS incentives are dependent on deal size, ranging from credits for outcome-based strategic migrations (i.e.,SAP S/4HANA, Aurora, Graviton) and deeper discounts on specific services (i.e., EC2, S3 storage, data transfer) to reductions on training and support costs.
AWS continues to request that customers increase their spending commitment by at least 20% during discussions for new or renewed private pricing discounts. This is negotiable, not mandatory for a standard (not early) renewal, and will conflict with some customers’ optimization efforts by placing more risk on them to meet higher annual obligations.
In exchange for incentives (i.e., credits, discounts),AWS may require the
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Analysts:
Aadil Nanji, Dolores Ianni, Simone Cleminson, Domenico Scriva
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