Effective June 1, 2025, AWS will implement a new Reserved Instances (RIs) and Savings Plans (SPs) sharing policy that prohibits sharing these commitments across multiple end customers within a single AWS Organization. While this policy update impacts many AWS Solution Providers and Distributors who currently share RIs and SPs, Archera’s approach remains fully compliant with the new rules.
Unlike partners who purchase RIs and SPs in bulk and share them across multiple end customers, Archera ensures that all commitments are customer-specific and tied directly to the customer's AWS account.
Customer-Owned Commitments:
Commitments purchased through Archera, such as RIs or SPs, are always purchased within a single end customer’s AWS organization. This guarantees that these commitments are applied solely to that customer’s usage, aligning with AWS's intent for these pricing products.
Rebate-Based Model:
Archera simplifies the process by purchasing commitments on behalf of the customer and rebating the cost back to the customer. This structure eliminates any possibility of RI or SP sharing across accounts, as all discounts remain specific to the customer who owns the commitment.
Seamless Compliance:
Archera’s model inherently avoids the pitfalls of shared RI/SP strategies, ensuring compliance with AWS's new policies without requiring significant operational changes.
Customer-Centric Savings: Every RI and SP purchased through Archera is tailored to the individual customer’s needs, ensuring maximum cost efficiency without compromising policy compliance.
No Transition Required: Unlike other AWS partners who must overhaul their practices to meet the new policy requirements, Archera customers will experience no disruptions or policy-related risks.
Built-in Policy Alignment: Archera's structure has always aligned with AWS's vision of customer-specific commitment-based pricing products.
AWS's updated policy primarily affects:
Partners who purchase RIs and SPs in bulk and share them across several different customers in an AWS Organization.
Channel resellers who manage consolidated billing across numerous customers.
These partners 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.
While this policy introduces significant challenges for traditional AWS resellers, Archera’s model was built to comply with AWS’s intended use of RIs and SPs from the start. By maintaining a customer-centric approach and avoiding bulk commitment purchases, Archera helps customers rate optimize their AWS costs without risking non-compliance.
If you have any questions or would like to learn more about how Archera supports your AWS savings strategy, feel free to reach out to our team.
Stay confident in your AWS cost management with Archera!
If you are a partner already using Archera to manage your commitment strategy in a consolidated billing environment with multiple end-customers, there will be little action needed from your team to transition into & maintain compliance with the new policy.
If you are a partner not using Archera on your consolidated billing environment that needs to move into compliance or a partner looking to capture new business from the inevitable migration of customers out of non-compliant consolidated billing environments that can no longer offer the RI & SP flexibility customers desire, then please find time with Archera's partner team to learn how our insured commitments, unique revenue share model and resell compliance programs can help you turn this Amazon Policy Update into a big opportunity for your business.