How to benefit from AWS’ RI/SP sharing policy change
Beginning on June 1, 2025, Amazon Web Services will no longer allow Reserved Instances (RIs) and Savings Plans (SPs) commitments to be shared among multiple customers. This removes a popular way for AWS partners to provide RI and SP flexibility to end customers and offset the risk of customers failing to pay with supplemental revenue.
These policy enhancements do not impact Archera or its business model, and actually provide significant opportunities for:
- AWS customers who rely on solution providers to provide savings through group buying and RI and SP sharing tactics should contact Archera to see how we can work with them in a policy-compliant way to deliver greater savings with more flexibility and less risk
- AWS Resellers in the Solution Provider Program (SPP) or Distribution Program (DP) who currently purchase RIs and SPs in bulk to share them within an AWS organization, or manage consolidated billing across numerous customers, should join Archera’s RI and SP Compliance Program for AWS Resellers, which provides a seamless transition for end customers and creates a new revenue stream
How end customers benefit from Archera
Unlike AWS Partners who purchase RIs and SPs in bulk and share them among multiple end customers, Archera helps customers purchase commitments specific to usage requirements, and ensures that all commitments are bound directly to the customer’s owned AWS account. Archera’s Insured Commitments are the only policy-compliant way to add flexibility to the terms of RIs and SPs.
- Customer-centric savings: Every RI and SP purchased through Archera is tailored to the customer’s specific needs, ensuring maximum cost efficiency without compromising policy compliance
- Customers own their commitments: RI and SP commitments purchased through Archera are always purchased within a single end customer’s AWS Organization, guaranteeing that these commitments are applied solely to that customer’s usage
- No transition required: Unlike customers of AWS Partners who will need to overhaul their practices to meet the new policy requirements, Archera’s customers and the customers of Archera’s partners will experience no disruptions or policy-related risks
- Compliant, insurance-backed model: Archera’s flexible-term Insured Commitments reduce risk and simplify the process of purchasing and managing commitments, and provide a Moneyback Guarantee to automatically rebate end-customers for underutilization. Archera’s model aligns with AWS’ vision for commitment-based discount products.
How AWS Resellers benefit from Archera’s Compliance Program
AWS Resellers in the Solution Provider Program (SPP) or Distribution Program (DP) will need to adjust their purchasing and operational strategies to ensure that commitments are applied to single end-customer accounts, either through dedicated Program Management Accounts (PMAs) or individual member accounts.
Some AWS Resellers’ margins could be eroded significantly beginning June 1, 2025, or even earlier as end customers inevitably explore alternative solutions for flexible AWS discounts.
Archera has launched a unique RI and SP Compliance Program for AWS Resellers to help affected AWS Partners:
- Transition customers to compliant payer account structures and purchasing strategies at no cost to the customer or partner
- Operationalize Archera’s Insured Commitments for end customers to deliver flexible-term RI and SP discount coverage while gaining a new revenue stream from a share of insurance premiums
- Protect against potential losses by bearing the risk of customer nonpayment
Archera does not rely on discount sharing or Amazon EC2 Reserved Instances Marketplace resale to deliver customer savings, and instead delivers flexibility to standard AWS SPs and RIs through the unique financial mechanism of Insured Commitments, providing guaranteed Moneyback in the case of underutilization.
Within two weeks of joining Archera’s program, VeUP saw a complete process migration to compliant RI and SP management strategies for customers in their consolidated billing account, as well as the creation of a net new revenue stream.
Take action now to prepare for AWS’ RI and SP policy change
It’s crucial for AWS Partners and customers to adapt proactively. By leveraging Archera’s Insured Commitments and Compliance Program for AWS Resellers, organizations can transition smoothly, maintain compliance, and unlock new opportunities for cost savings and revenue growth. Contact Archera now to ensure your AWS strategy aligns with the coming changes and positions you for success in 2025 and beyond:
