Summary:
1. AWS is changing its policies regarding sub-account transfers and pooled commitments due to investments in new data centers for AI and hyperscale workloads.
2. This change is aimed at preventing MSPs from reselling discounted EC2 hours by closing a loophole in the system.
3. Enterprises should prepare for potential price increases on steady-state workloads and adjust their budget accordingly.
Article:
Effective June 1, AWS has announced significant changes to its policies regarding sub-account transfers and pooled commitments. This decision comes as AWS invests billions in new data centers to meet the growing demand for AI and hyperscale workloads. According to Barrow, this shift is necessary to ensure long-term planning and capital discipline for the infrastructure.
Phil Brunkard from Info-Tech Research Group UK clarified that AWS’s move is not about eliminating Reserved Instances (RIs) or Savings Plans (SPs), but rather closing a loophole that allowed MSPs to resell discounted EC2 hours. This change aims to promote direct negotiations and cleaner billing practices.
What IT buyers should do now
For enterprises that relied on brokers or value-added resellers (VAR) for discounted cloud resources, the arbitrage opportunity will no longer be available. Brunkard advises these enterprises to anticipate a slight increase in prices for steady-state workloads and to prepare for a transition away from pooled commitments.
On the other hand, companies that directly purchase RIs or SPs, or negotiate volume deals through AWS’s Enterprise Discount Program (EDP), should not be affected by these changes. Brunkard assures that pricing remains consistent, with the only difference being the baseline adjustment.
