Non-Qualifying AWS Marketplace SaaS Spend Counting Toward

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Chinonso Okafor

CER:

AWS-Other-5332

Service Category

Other

Cloud Provider

AWS

Service Name

AWS Marketplace

Inefficiency Type

Commitment eligibility misclassification

Explanation

This inefficiency occurs when teams assume AWS Marketplace SaaS purchases will contribute toward EDP or PPA commitments, but the SaaS product is not eligible under AWS’s “Deployed on AWS” standard. As of May 1, 2025, AWS Marketplace allows SaaS products regardless of where they are hosted, while separately identifying products that qualify for commitment drawdown via a visible “Deployed on AWS” badge.

Eligibility is determined based on the invoice date, not the contract signing date. As a result, Marketplace SaaS contracts signed prior to the policy change may still generate invoices after May 1, 2025 that no longer qualify for commitment retirement. This can lead to Marketplace spend appearing on AWS invoices without reducing commitments, creating false confidence in commitment progress and increasing the risk of end-of-term shortfalls.

Relevant Billing Model

Marketplace SaaS charges can appear on AWS invoices, but only SaaS products designated as “Deployed on AWS”—where both the application and control planes run entirely on AWS—are eligible to retire committed spend under EDP/PPA agreements.

Detection

Review Marketplace SaaS products invoiced on or after May 1, 2025, regardless of contract start date
Confirm whether each SaaS product is designated “Deployed on AWS,” meaning both application and control planes are fully hosted on AWS
Compare expected Marketplace contribution to commitments against actual commitment retirement reflected on invoices
Identify critical SaaS dependencies that are not “Deployed on AWS” but are included in commitment retirement forecasts
For large Marketplace portfolios, coordinate with your AWS account team or TAM to validate badge status in bulk, as eligibility is not currently exposed via APIs or cost reports

Remediation

Require verification of “Deployed on AWS” eligibility for any Marketplace SaaS purchases intended to retire commitments
Remove non-qualifying Marketplace SaaS spend from commitment forecasts and re-baseline shortfall risk
Update procurement and approval workflows to explicitly distinguish Marketplace availability from commitment eligibility
For non-qualifying SaaS that must remain, adjust commitment strategy by shifting planned drawdown to eligible AWS services or qualifying Marketplace products

Relevant Documentation

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