Definition
AWS Enterprise Discount Program (EDP): An Amazon Web Services cloud spend commitment program where the buyer prepays an AWS consumption target over a 1 to 5 year term in exchange for tiered discounts of 5 to 15 percent below pay as you go pricing. Commits typically start at $1 million annual and scale to $100 million or more. Marketplace listings burn down the commit at 100 percent for AWS managed listings and 50 percent for self serve listings under current rules.
EDP exists as the AWS workhorse enterprise commit vehicle. AWS sales teams need committed cloud revenue while enterprise buyers need discount certainty as workloads scale. The commit converts pay as you go pricing into prepaid pricing with tiered discounts that grow with commit size. AWS public benchmark guidance and the VendorBenchmark cohort of 198 EDP commits show modal tier thresholds at $1 million, $5 million, $15 million, $50 million, and $100 million annual.
The Marketplace burn down mechanic is the structural detail that determines real EDP value. Eligible third party software offerings sold through AWS Marketplace burn the EDP commit. AWS managed listings, where AWS handles billing and the seller is contracted directly with AWS, burn at 100 percent. Self serve listings, where the seller bills directly through Marketplace billing, currently burn at 50 percent under the rules updated in 2024. The split materially affects vendor sourcing decisions because buyers can effectively convert EDP commitment into broader software procurement by choosing AWS managed Marketplace vendors.
Benchmark your AWS EDP
The AWS EDP discount benchmark covers 198 commits between $1M and $100M annual. Tier thresholds, Marketplace burn down strategy, and the renewal playbook.
How EDP tiers stack with Savings Plans and Reserved Instances
EDP, Savings Plans, and Reserved Instances stack. EDP applies the commit discount at the account family level, reducing every dollar of eligible spend including spend already discounted by Reserved Instances or Savings Plans. Reserved Instances commit to specific EC2 or RDS SKUs for 1 or 3 years with discount up to 72 percent for standard 3 year all upfront. Savings Plans commit to hourly compute spend for 1 or 3 years with up to 66 percent discount and more workload flexibility. The combination is the standard pattern for high spend AWS accounts.
For applied EDP negotiation see the AWS pricing guide, the AWS discount negotiation guide, and the AWS pricing and negotiation hub. The MACC definition covers the comparable Microsoft Azure mechanic and the Google Cloud CUD definition covers the Google equivalent. The glossary hub carries the broader procurement vocabulary.
For category benchmarks, the cloud infrastructure pricing benchmark compares the three hyperscalers, and the cloud infrastructure benchmark hub carries the broader discount data.
EDP renewal and ramp economics
EDP commits typically structure as a single annual figure with ramp clauses for buyers expecting workload growth across the term. A 3 year EDP with a ramp pattern of $5M year one, $8M year two, $12M year three is more attractive than a flat $8.3M annual commit for a buyer in a growth phase because the year one underconsumption risk is smaller. AWS deal desks accept ramp structures on commits above $5M annual in most cases. Renewal happens at the commit anniversary with a 90 to 180 day window for sourcing.
Frequently asked questions
What does AWS EDP stand for?
EDP stands for Enterprise Discount Program. The AWS EDP is a 1 to 5 year prepaid AWS spend commitment with tiered discounts of 5 to 15 percent below pay as you go pricing for enterprise customers.
How does AWS EDP discount work?
EDP discount tiers escalate with annual commit size. Modal tier thresholds sit at approximately $1 million, $5 million, $15 million, $50 million, and $100 million annual commit. Discount tier steps run 2 to 4 percentage points at each threshold, with total ceiling of 15 percent for the largest commits.
What is Marketplace burn down on EDP?
Marketplace burn down is the mechanic where eligible AWS Marketplace third party software purchases count toward the EDP commit. AWS managed Marketplace listings burn at 100 percent. Self serve Marketplace listings burn at 50 percent under the 2024 rule update.
Can EDP, Savings Plans, and Reserved Instances stack?
Yes. EDP applies at the account family level and discounts every eligible dollar including dollars already discounted by Reserved Instances or Savings Plans. The combination is the standard pattern for AWS accounts above $5M annual spend.
What happens if EDP is underconsumed?
Unused EDP commit at term end is forfeit unless renegotiated. AWS does not refund unconsumed dollars. Buyers facing underconsumption risk should renegotiate the next year commit size at anniversary, accelerate Marketplace burn down on planned third party purchases, or restructure to a smaller commit with shorter term.
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