AWS Enterprise Agreements: Complete Guide for Organizations

Managing cloud costs is one of the biggest pain points for enterprises scaling on AWS. As your usage grows across dozens of services and hundreds of accounts, on-demand pricing quickly becomes unsustainable. Enter AWS Enterprise Agreements (EAs): a volume pricing program designed to help large organizations cut costs, simplify billing, and unlock exclusive enterprise perks.

Whether you’re currently spending $1M or $10M+ on AWS annually, this guide breaks down everything you need to know about AWS Enterprise Agreements: what they are, who qualifies, key terms to negotiate, and common pitfalls to avoid.

What Are AWS Enterprise Agreements?

AWS Enterprise Agreements are multi-year volume pricing contracts tailored for large organizations with significant AWS spend. Unlike self-service pricing models (like On-Demand or Savings Plans), EAs are negotiated directly with the AWS enterprise sales team.

Under an EA, your organization commits to a minimum spend over a 1-3 year term. In exchange, you receive:

• Tiered volume discounts across nearly all AWS services
• Consolidated billing for all linked AWS accounts
• Enterprise-grade AWS Support and a dedicated Technical Account Manager (TAM)
• Exclusive perks like training credits, beta feature access, and architecture reviews

EAs are not available to small businesses or self-service customers. They are designed for enterprises using AWS Organizations to manage multi-account environments, with annual spend typically starting at $1 million.

Key Benefits of AWS Enterprise Agreements

For eligible organizations, EAs deliver far more value than standard AWS pricing models:

• Predictable costs: Lock in discounted rates for 1-3 years, eliminating surprise spikes in on-demand pricing.
• Flexible usage: Your committed spend applies to all eligible AWS services, not just specific instance families or workloads.
• Volume discounts: The higher your committed spend, the steeper your discounts (some organizations save 20-40% compared to on-demand rates).
• Simplified operations: Consolidated billing reduces administrative overhead for finance teams.
• Expert support: A dedicated TAM helps optimize your workload performance and cut unnecessary spend.

Who Is Eligible for an AWS Enterprise Agreement?

AWS sets loose eligibility criteria for EAs, but most approved customers meet the following:

• Annual AWS spend of $1 million or more (or a clear path to hit that spend within 12 months)
• Use of AWS Organizations to manage multiple linked accounts
• A dedicated finance or cloud team to manage contract compliance

Smaller organizations with lower spend can explore the AWS Enterprise Discount Program (EDP), Savings Plans, or Reserved Instances for cost optimization. As outlined in the official AWS Enterprise Agreements documentation, eligibility is ultimately determined by the AWS sales team during negotiations.

Critical Terms to Know Before Signing

AWS Enterprise Agreements include several unique terms that differ from standard cloud contracts. Make sure you understand these before signing:

Commitment Term

Most EAs run for 1, 2, or 3 years. Longer terms typically unlock higher discounts, but reduce flexibility if your cloud usage drops. Choose a term that aligns with your organization’s 3-year cloud roadmap.

Committed Spend

This is the minimum total amount your organization agrees to spend over the contract term. For example, a 3-year EA with a $3M committed spend requires $1M in annual spend. You are liable for the full committed amount even if your actual usage falls short, though some contracts allow rolling over unused credits to a renewal term.

Discount Tiers

AWS uses tiered discounts based on your annual committed spend. For example, a $1M annual commitment may unlock 10% off on-demand rates, while a $5M annual commitment may unlock 25% off. Discounts apply to all eligible services, not just specific workloads.

Service Coverage

Nearly all core AWS services (EC2, S3, RDS, Lambda, etc.) are covered under EAs. Exclusions typically include third-party AWS Marketplace products, AWS Ground Station, and some specialized edge services. Ask your sales representative for a full list of covered services before signing.

How to Sign an AWS Enterprise Agreement

EAs cannot be purchased via the AWS self-service console. Follow these steps to start the process:

1. Audit your current spend: Use tools like AWS Cost Explorer (see our step-by-step Cost Explorer tutorial for setup tips) to gather 12 months of historical usage data and project future growth.
2. Contact AWS Enterprise Sales: Reach out via the AWS website to connect with a dedicated enterprise account executive.
3. Negotiate terms: Push for higher discount tiers, added perks (extra training credits, longer TAM support), and flexible renewal terms. For smaller workloads, our guide to Savings Plans vs Reserved Instances can help you choose the right model to layer under your EA.
4. Review with stakeholders: Have your legal and finance teams review the contract to confirm commitment terms and liability clauses.
5. Onboard: Once signed, link all AWS accounts to your master payer account to activate consolidated billing and discounts.

Common Mistakes to Avoid With AWS Enterprise Agreements

Even large organizations make costly errors when signing EAs. Steer clear of these common pitfalls:

1. Overestimating committed spend: If you commit to $5M annually but only spend $3M, you’ll still owe the full $5M. Base your commitment on conservative growth projections, not best-case scenarios.
2. Not negotiating perks: AWS sales teams have flexibility to add training credits, extra support hours, and beta access. Always ask for these perks before signing.
3. Ignoring service exclusions: Assuming all AWS services are covered can lead to unexpected on-demand charges for excluded products.
4. Skipping regular usage reviews: Your TAM can help identify unused resources or underutilized services to maximize your EA value.
5. Signing a long term without a growth plan: If your organization plans to shift workloads off AWS, a 3-year EA may leave you paying for unused capacity.

AWS Enterprise Agreements vs. Other AWS Pricing Models

Not sure if an EA is right for you? Here’s how it compares to other popular AWS pricing options:

• On-Demand: Pay-as-you-go, no commitment, highest rates. Best for testing or intermittent workloads.
• Reserved Instances (RIs): 1-3 year commitment to specific EC2 instance families. Steeper discounts than on-demand, but less flexible than EAs.
• Savings Plans (SPs): 1-3 year commitment to a specific amount of compute usage (EC2, Lambda, Fargate). More flexible than RIs, but only covers compute services.
• AWS Enterprise Agreements: Covers all eligible services, includes enterprise support and TAM, requires $1M+ annual spend. Best for large organizations with diverse AWS usage.

Frequently Asked Questions

Can small businesses sign an AWS Enterprise Agreement?

No, EAs are designed for organizations with $1M+ annual AWS spend. Smaller businesses can use Savings Plans, Reserved Instances, or the AWS Enterprise Discount Program for cost savings.

What happens if I exceed my committed spend under an AWS EA?

Overage spend is charged at the same discounted rates as your committed spend, so you will never pay higher on-demand rates for extra usage.

Can I cancel an AWS Enterprise Agreement early?

No, EAs are legally binding contracts for the full term. Early cancellation is not permitted, so make sure your usage projections are accurate before signing.

Does an AWS EA include technical support?

Yes, most EAs include enterprise-grade AWS Support and a dedicated Technical Account Manager (TAM) to help optimize your cloud environment.

Ready to Optimize Your AWS Spend?

If your organization spends $1M+ annually on AWS, an Enterprise Agreement could cut your cloud costs by 20% or more. Our team of AWS-certified experts can audit your current usage, project future spend, and help you negotiate the best possible EA terms.

Get a free, no-obligation AWS spend audit today.