Everything You Need to Know About AWS Funding Programs

November 28, 2022
/
Ibexlabs
/
The Cloud
/

AWS Funding Programs can help you save some serious money on your next AWS project. Here’s how you can use them to your advantage.

Amazon Web Services (AWS) is a comprehensive and widely adopted cloud platform that hosts more than 200 fully-featured services from data centers globally. Growing start-ups, large enterprises, and top government agencies are utilizing the AWS platform to lower costs, increase agility and innovate faster.

AWS makes it easier, faster, and more cost-effective to migrate to advance your existing applications to the cloud. In addition, the AWS platform is the most secure and flexible cloud computing platform available today. From global-scale security infrastructure to incredibly dynamic and powerful high-performance containers that allow organizations to scale next-gen technologies (e.g., IoT, machine learning, etc.), AWS is the defacto market leader in the cloud computing space.

Furthermore, AWS has a diverse network of partners, including Ibexlabs, to help you increase agility, minimize cost and deliver great value for your business. You can unlock various funding benefits by joining the AWS partner network and participating in particular programs available to AWS partners.

Here's an overview of AWS funding programs.

calculator and money next to a digital cloud render
AWS Funding Programs

Enterprise Discount Program (EDP)

The AWS enterprise discount program is customized for account owners committed to long-term, high-volume spending with AWS. The funding program helps you achieve sustainable economies of scale as you expand your business operations on the cloud. 

The EDP program offers contractually aligned discounts for AWS account owners who devote to a predetermined annual spend, commonly $1 million or more. The agreeable commitment period typically ranges from one to five years. The discount varies based on spending commitment, but it's typically 9%.

Moreover, the AWS EDP discount program is a systematic approach to encourage long-term partnerships that incentivizes high-volume and predictable AWS consumption.

Variables that affect the AWS EDP program include:

  • AWS Marketplace
  • Prepayment
  • Projected future spending
  • Grace period
  • Support pricing and services

You'll benefit more by working with a service partner like Ibexlabs to calibrate the EDP discount program to your specific needs, priorities, and constraints. We can help you implement solid governance practices that will improve value over time, reduce cloud costs, and adhere to regulatory needs.

AWS Migration Acceleration Program (MAP)

The AWS MAP is a proven and comprehensive cloud migration program for organizations or agencies seeking to accelerate their AWS cloud migration.

MAP offers tools that minimize costs and automate and accelerate execution, expertise from AWS professional services, tailored content and training approaches, AWS investment, and a global partner ecosystem.

Additionally, the program utilizes an irrefutable three-phased framework, Asses, Mobilize and Migrate, to aid you in achieving your migration goals. 

The benefits of the AWS Migration Acceleration Program (MAP) include;

  • Create solid AWS cloud foundations
  • Offsetting the initial cost of migration
  • Accelerating your migration to the AWS cloud platform
  • Minimizing risks such as data loss

Migrating your applications and infrastructure to the cloud will minimize your IT costs while freeing resources to focus on factors that set your business apart. 

Moreover, your migration to AWS will boost staff productivity since your IT infrastructure management will be 62% more efficient.

Savings plans

Savings Plans is a flexible pricing model offered by AWS that guarantees reduced prices compared to on-demand pricing in exchange for a particular usage commitment — measures in $/hour for a period of one-three years.

AWS offers three types of savings plans;

  • Compute savings plans — this saving plan allows you to minimize the cost of your AWS compute usage. Additionally, you can benefit from compute savings plans if you use AWS Lambda, Amazon EC2, and AWS Fargate.
  • EC2 Instance Savings Plans — the EC2 Instance Savings Plans offer up to 72% savings over on-demand pricing on your Amazon EC2 Instances usage. This program also provides flexibility to change usage between instances.
  • Amazon SageMarker Savings — this savings plan applies only to Amazon SageMarker usage.

You can easily enroll in a 1-3 year Savings plan in AWS cost explorer. Additionally, you should utilize performance reporting, recommendations, and budget alerts to better manage your savings plans.

With the AWS savings plans, you have the flexibility to advance usage while saving money. For instance, when you modernize your application to use AWS Lambda or Fargate, lower prices will apply automatically. Also, you can decide your ideal Savings Plans, payment options, and term lengths based on your specific requirements.

Reserved Instances (RI)

Reserved instances or RI offer notable savings (up to 72%) on your Amazon EC2 costs compared to the on-demand price. Additionally, when used in a specific availability zone, RI offers a capacity reservation.

You can change tenancies, families, and OS types with convertible reserved instances while gaining from RI pricing.

Furthermore, you can buy a reserved instance for a one to three-year commitment. The longer the term commitment, the more discount you'll earn from a reserved instance.

AWS reserved instances have the following payment options;

  • All upfront — total amount is paid at the start of the term with no other charges incurred throughout the term
  • Partial upfront — you pay a portion of the cost upfront, and the remainder is billed at a discounter hourly rate
  • No upfront — you pay at a discounted hourly rate regardless of whether or not you use the reserved instance.

The three types of Amazon EC2 reserved instances are;

  • Standard RIs
  • Convertible RIs
  • Scheduled RIs

Spot instances 

A spot instance uses a spare EC2 capacity available for less than the on-demand cost. These AWS instances allow you to appeal unused EC2 instances at sharp discounts, minimizing your Amazon EC2 costs. 

The Amazon EC2 sets the hourly rate for spot instances (spot price) in each available zone. Moreover, the spot price is gradually adjusted based on the demand and long-term supply of spot instances.

Spot instances are suitable for batch jobs, data analysis, background processing, and optional tasks. 

Learn more about EC2.

Conclusion

picture of AWS sign painted on wall in a subway | AWS Funding Programs
Build on AWS with AWS Funding Programs

If you're considering or have already migrated to the AWS cloud platform, you should take advantage of their various funding programs. For example, the MAP program will accelerate your migration to the cloud while minimizing costs and related risks. Additionally, take advantage of EDP for high volume, long-term spending commitment to AWS.

It's best to work with an AWS partner who understands the whole process of migrating to the cloud. Ibexlabs will modernize your cloud architecture while optimizing cloud computing costs. Contact us to start your journey to the cloud.

Ibexlabs

Ibexlabs is a team of disruptive thinkers. We support businesses by building scalable, agile, and innovative infrastructure through AWS and DevOps technology. We help companies of all sizes get the most from the cloud and their applications.

Talk to an Ibexlabs Cloud Advisor