Simplifying your AWS Private Pricing Addendum (PPA)

If you’re currently working on an AWS Private Pricing (PPA) contract or Enterprise Discount Program – this guide will help you!

Let’s start off with the two terms, the AWS PPA and AWS EDP are basically the same thing, both refer to customized negotiated pricing agreements based on a committed spend over a specific period for your company. For the focus of this article, we’ll use the PPA terminology.

The first step when you think of the term PPA is to consider 2 options, an AWS Led PPA or a Partner Led PPA. Both options aim to provide clients with discounted pricing and are based on your commitment level to using AWS services. Commits are typically 1, 3 or 5 year commits. The higher the volume, the higher the potential discounts and cost savings. Your negotiation will be finalized against a term sheet which refers to the terms and conditions that will be included in the final agreement. It is essentially the summary document against which your PPA contract length stands. It is key to note that not all services are eligible and only the ones agreed upon in your term sheet will help retire your committed spend.

Both types of PPAs aim to provide customers with discounted pricing and other benefits based on their commitment to using AWS services. 

Things to consider when comparing the two options:

Who does the Negotiating?

Partner Led PPA: Partners like Ensono will work with your team and do the negotiating with AWS. Your partner can help save you time on negotiating your PPA.

AWS Led PPA: Your team will manage this directly with AWS.

Is one more flexible than the other?

Partner Led PPA: Working with a partner will allow you to have more flexible terms and conditions based on the Partner’s relationship with AWS. The partner will also be able to offer you more tailored solutions vs AWS specific solutions.

AWS Led PPA: Working with AWS will typically be against more standard terms and conditions.

What level of enterprise support should you be expecting?

Partner Led PPA: Depending on a partner’s portfolio of services, a client will have the ability to customize with options like consulting, implementation, ongoing operations and more. Another benefit is that you get access to the Partner’s AWS Technical Account Manager and potentially other AWS partner reps depending on the level of your partner’s standing.

AWS Led PPA: AWS will provide support directly, which includes access to AWS support plans and resources.

Billing Management

Partner Led PPA: Your partner handles both billing and support. The advantage to this is that you can be provided more services to optimize your savings.

AWS Led PPA: AWS Manages the billing directly with you. This requires resources on your part to manage the process.

Additional Discounts/Incentives (outside of direct PPA discounts)

Partner Led PPA: Partners may be able to include additional incentives based on commit agreements.

AWS Led PPA: AWS generally provides standard discounts.

AWS Marketplace

Partner Led PPA: Partners can act as a trusted advisor supporting the complexities of the marketplace.

AWS Led PPA: AWS account team may provide advice on marketplace transactions.

There are advantages to using a partner when it comes to AWS Private Pricing Addendums and agreements as outlined above. Expect at least 90 days for your PPA to go live, from the start of the discussions to negotiations through the deal desk to finalizing your PPA. PPAs must be submitted on the 20^th of the prior month for it to go live the first of next month.

The PPA program is an opportunity for your organization to optimize AWS costs and manage your cloud budgets. With partners like Ensono, we can assist you in implementing best practices, monitoring your cloud costs and AWS spending, and providing recommendations for cost optimization, enabling you to concentrate on your core business.

There are other cost savings options like AWS savings plans and volume discounts – work with us today with evaluating your spending history, assist in growth projections and commitments to help you decide if a private pricing agreement will be a good fit for your organization.