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Hidden Marketplace Spend Preventing Commitment Optimization
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Hidden Marketplace Spend Preventing Commitment Optimization
Alexa Abbruscato
Service Category
Other
Cloud Provider
AWS
Service Name
AWS Marketplace
Inefficiency Type
Commitment Misalignment
Explanation

In many organizations, AWS Marketplace purchases are lumped into a single consolidated billing line without visibility into individual vendors. This lack of transparency makes it difficult to identify which Marketplace spend is eligible to count toward the EDP cap. As a result, teams may either overspend on direct AWS services to fulfill their commitment unnecessarily or miss the opportunity to right-size new commitments based on existing Marketplace purchases. In both cases, the absence of vendor-level detail hinders optimization.

Relevant Billing Model

Marketplace spend is billed via AWS and may count toward EDP commitments—but only specific vendors and SKUs qualify. Additionally, Marketplace purchases that *do* count are capped at contributing no more than 25% of the total EDP commitment. Without detailed billing data, it's difficult to determine how much of the spend is eligible, leading to inaccurate forecasting and underutilized discounts.

Detection
  • Review EDP commitment utilization and assess if it’s lower than expected despite high Marketplace usage
  • Analyze whether large Marketplace purchases are being made without contributing to EDP drawdown
  • Check if cost reporting lacks vendor-level granularity for Marketplace spend
  • Evaluate whether new commitments are being sized without factoring in eligible Marketplace spend
Remediation
  • Enable detailed cost allocation and tagging to isolate Marketplace spend by vendor
  • Cross-reference vendor eligibility with AWS to determine which purchases count toward the 25% Marketplace cap
  • Update forecasting and commitment planning to include both direct AWS and eligible Marketplace purchases
  • Rebalance future commitments to maximize EDP drawdown across both purchase types
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