I'm currently in the final stages of finalizing a PPA/EDP with AWS through a large reseller, but I've recently noticed some discrepancies between what we've discussed over calls and what's reflected in the contract. The reseller insists they don't take any percentage from the PPA and pass the full discount on. They claim their earnings come from AWS rebates and by offering premium services that they hope we'll purchase. However, I'm starting to question whether they're actually skimming a percentage, especially since the deal amounts to over $1 million per year, at around a 6.5% average discount. Additionally, I'm curious if 'deal registration' exists in these AWS PPA deals, as I remember such concepts in older agreements. Based on what I've read, it seems like now might be the right time to reconsider my reliance on this reseller before we commit to a three-year term. I'd appreciate hearing about others' experiences in similar situations. Thanks!
4 Answers
If the reseller isn't skimming, they might be working towards larger volume discounts or could be compensated by AWS for getting you to sign a commitment. How transparent are they about costs? If they control your financial dashboards, that's a red flag—ask for more clarity!
I don't think resellers typically hide things, but reaching out to your account manager for confirmation could provide peace of mind. Sometimes, resellers include enterprise support options at no additional cost that you might be missing out on.
You should have full visibility of your billing. The reseller will receive some commission or rebate, which can sometimes appear as credits to your account, but you should still clearly see what you're being charged. If there's any doubt about the value added by the reseller, consider negotiating directly with AWS. In my experience, things have changed a lot in the billing process in recent years. Just ask the right questions!
Thanks for the insight! We control our root account and can view bills directly through AWS. The reseller applies AWS credits to our account, which makes me wonder if that's a common practice and if it leaves room for skimming.
A $1M deal with only a 6.5% discount seems low. Is that standard? I thought deals that large often had much better terms, like 10%. Have you looked into getting a direct deal with AWS?
Is it common to get a better deal for that size? The reseller said it was a good offer, averaging 5-10%, but I'd have to upgrade to a $2M commitment to see a higher discount.
They have been pretty upfront about things, and I believed them until now. They do offer a FinOps dashboard, which is useful, but not if it compromises our actual discounts.