Prevent and reduce AWS PPA commitment shortfall payments
AWS customers with a Private Pricing Addendum or Agreement (PPA — also known as Enterprise Discount Program or EDP) often encounter a gap between their projected spend and enterprise commitment thresholds, particularly in the later stages of multi-year contracts. Archera collaborates with organizations, even as late as the fourth quarter of their enterprise pricing contract year, to effectively manage overcommitment and avoid losses from shortfalls.
When to act: Rescuing your PPA from shortfall losses
Archera’s complimentary PPA loss prevention and recovery service is tailored for organizations facing an imminent gap in their enterprise pricing agreements. Our service is ideal for:
- Businesses with visibility into a potential shortfall or concerns about underutilization in their existing PPA or EDP
- Any AWS customer who is currently at risk of not meeting their annual commitment
- Organizations actively experiencing a shortfall event
Since shortfalls are calculated annually, Archera’s expertise is especially valuable if you are midway through or in the final quarter of your enterprise pricing contract year to help you navigate risks and protect against shortfall chargeback.
How complimentary PPA commitment shortfall prevention works
Archera will help you minimize the impact of a potential PPA commitment shortfall and avoid chargeback payments. Our AWS FinOps experts will collaborate with your team to forecast your potential shortfall and develop and implement a tailored prevention program that considers your current and future AWS purchasing plan and usage strategy. Tactics to recover potential losses include:
- Optimizing purchasing strategies for third-party cloud-based software services to take advantage of AWS Marketplace’s effect on commitment burndown
- Paying upfront costs for native AWS Savings Plans and Reserved Instances, which can be supported and amortized through Archera’s upfront lending capabilities
- Prepaying premiums for Archera’s flexible-term Insured Commitments via AWS Marketplace
- Prepay for future savings opportunities ahead of time, including your next PPA or Archera’s AWS PPA Insurance
Insure and de-risk your next AWS PPA
Archera offers shortfall prevention services to help you preview how you can engage within six months of your PPA renewal to minimize future risk through comprehensive demand modeling and AWS PPA Insurance:
- Forecast future demand: Accurately predict future cloud usage to make informed decisions
- Reduce overcommitment uncertainty: Mitigate the risk of commitment shortfalls with insurance coverage
- Negotiate optimal terms: Get the foresight you need to secure more favorable contract terms and higher discounts
By leveraging Archera's expertise, organizations can confidently commit to PPAs, optimize their cloud spending, and achieve significant cost savings.
