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Double Counting on EDP Commitments
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Double Counting on EDP Commitments
Alexa Abbruscato
Service Category
Other
Cloud Provider
AWS
Service Name
AWS Marketplace
Inefficiency Type
Commitment Misalignment
Explanation

Many organizations mistakenly believe that all AWS Marketplace spend automatically contributes to their EDP commitment. In reality, only certain Marketplace transactions, those involving EDP-eligible vendors and transactable SKUs, will count towards a portion of their EDP commitment. This misunderstanding can lead to double counting: forecasting based on the assumption that both native AWS usage and Marketplace purchases will fully draw down the commitment. If the assumptions are incorrect, the organization risks failing to meet its EDP threshold, incurring penalties or losing expected discounts.

Relevant Billing Model

Marketplace purchases are billed via AWS and may count toward Enterprise Discount Program (EDP) commitments only if they are considered “EDP-eligible.” However, not all SKUs or sellers qualify, and eligibility may vary based on how the contract was negotiated. Buyers sometimes assume that Marketplace spend always contributes to EDP drawdown, leading to overcommitment or missed discounts.

Detection
  • Review EDP commitment reports and compare drawdown pace against forecasted Marketplace purchases
  • Evaluate if Marketplace purchases were included in EDP planning assumptions
  • Identify high-value Marketplace purchases that did not contribute to commitment drawdown
  • Check whether Marketplace SKUs are transactable and EDP-eligible for the specific seller and contract
  • Automated cost anomaly detection for commitment vs. actual drawdown
  • API-based monitoring of Marketplace EDP eligibility status
  • Regular reconciliation reports comparing forecasted vs. actual EDP contributions
  • Confirm whether any sellers have opted out of EDP eligibility
Remediation
  • Request explicit confirmation of EDP eligibility for key Marketplace vendors and SKUs before purchase
  • Negotiate drawdown terms into enterprise contracts when possible
  • Maintain a list of verified EDP-eligible SKUs used in cost modeling
  • Adjust future forecasts and budgets to reflect actual drawdown behavior
  • Implement automated tagging policies for all Marketplace purchases
  • Establish monthly EDP utilization reviews with finance and procurement teams
  • Create approval workflows for large Marketplace purchases that verify EDP eligibility upfront
  • Consider alternative commitment vehicles (Savings Plans, RIs) for non-EDP eligible workloads
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