Changes in AWS Marketplace

If you’re an AWS customer, you’re probably aware of how AWS Marketplace can change the way you buy software. AWS Marketplace is a powerful tool designed to make software procurement easier and more effective for businesses of all sizes. It helps you simplifying procurement, offering pre-configured solutions, and a wide range of products, with flexible pricing options, and a focus on security. This post will break down the new changes coming to AWS Marketplace in straightforward terms, so you can understand how it can help your organization.

Streamlined Procurement Process

One of the best things about AWS Marketplace is how simple it is to buy software. In many organizations, getting software can take a long time due to complicated approval processes and requests for purchase orders (POs). AWS Marketplace simplifies this process by allowing you to buy and deploy software with just a few clicks. Instead of waiting for approvals, you can quickly make purchases and get back to your work. Plus, the billing is integrated with your existing AWS account, so you don’t have to manage separate invoices or payment processes.

Pre-Configured Solutions for Easy Setup

When you buy software, the last thing you want is to struggle with a complicated installation. Luckily, most software in AWS Marketplace comes pre-configured to work with AWS. This means you won’t have to spend a lot of time and effort setting things up. You can start using the software right away, which saves you time and lets your IT team focus on more important tasks instead of troubleshooting setup issues.

A Wide Selection of Products

AWS Marketplace has thousands of software listings from trusted vendors, which means you have plenty of choices when it comes to finding the right tools for your organization. Whether you’re looking for security software, productivity tools, or other specialized applications, you can find what you need all in one place. This broad selection saves you the hassle of searching through multiple vendors or jumping around different websites to make sure you’re getting the best options available.

Security and Compliance

With the rise in cyber threats, security is a top priority for everyone. Every software option listed undergoes a strict security assessment by AWS to meet basic security standards. This gives you peace of mind that the software you are using is safe for your organization, allowing you to focus on your core business without worrying about potential security issues.

Flexible Pricing Models

When it comes to purchasing software, cost is always a concern. AWS Marketplace recognizes this and offers various pricing models that can fit different budgets and needs. You can choose from pay-as-you-go options, annual subscriptions, or even private offers. This flexibility allows you to select the pricing model that works best for your organization. For many businesses, these financial options make AWS Marketplace even more attractive.

Understanding Changes to Commitment Policies

If your organization operates under a Private Pricing Agreement (PPA) or an Enterprise Discount Program (EDP), it’s essential to know how your spending on AWS Marketplace counts toward your annual commitments. For contracts signed before 2022, only 50% of Marketplace spending would count towards that commitment. However, this policy changed in 2022, and now 100% of eligible Marketplace spending counts, capped at 25% of your annual commitment.

This change is significant because it means you can use Marketplace purchases to help meet your commitments.

However, starting May 1, 2025, only software as a service (SaaS) products that are entirely hosted on AWS will count towards these commitments. This may restrict some options, so it’s crucial to be aware of these rules as you plan your software purchases.

In AWS marketplace you can find software solution under two delivery options, AMI or SaaS. The new changes applicable since May 1st will only affect software with SaaS delivery mode. The amount consumed in these software solutions will only count towards your annual commitment when those solutions are fully deployed on AWS by their vendors (this ocndition will be reflected in a new seal displayed on Marketplace).

Maximizing Your Benefits Through Strategic Choices

To make the most of AWS Marketplace, it’s essential to be strategic about the software you choose. It might make sense, depending on your commitment burning rate, to chose specific SW solutions that do contribute to your commitment vs other solutions not contributing. Remember that discounts received from purchases will not reduce your total commitment amount.

However, the ability to use Marketplace purchases to offset a portion of your PPA commitments creates flexibility. Organizations that want to integrate third-party software solutions can take advantage of this while still meeting their AWS spending commitments. Additionally, Private Offers available through AWS Marketplace can help you renew software licenses at favorable terms, especially when dealing with partners.

Reach Out for Help When Needed

If you are unsure about how to handle your commitments and what impact AWS Marketplace can have on your software procurement strategy, don’t hesitate to reach out for a consultation. Our team can provide detailed insights and help you understand how recent changes to AWS Marketplace policies may affect your organization as you renew long-term contracts.

By integrating AWS Marketplace into your procurement strategy, you can not only gain access to essential tools but also optimize your spending and contract commitments. Stay informed, strategize your purchases, and ensure your organization is making the most of what AWS Marketplace has to offer. Whether you’re just getting started or looking to improve your existing processes, AWS Marketplace can be a key player in streamlining your software acquisitions. Reach out today to learn more about how AWS Marketplace can benefit your organization!