Explanation
Why the waste happens and who it affects.
In reality, only certain Marketplace transactions, those involving eligible vendors and transactable SKUs, such as SaaS products designated "Deployed on AWS", 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.
Billing model
The pricing dimensions that drive this cost.
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. Since the May 1, 2025 Marketplace policy change, SaaS products generally need the "Deployed on AWS" designation, meaning the application and control planes run entirely on AWS, to count toward EDP/PPA drawdown. Buyers sometimes assume that Marketplace spend always contributes to EDP drawdown, leading to overcommitment or missed discounts.
How to detect
8 checks to find it in your estate.
- 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
How to fix
8 ways to remove the waste.
- 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
Documentation
Vendor references for pricing and configuration.