Case Study

Negotiating a Longer-Term AWS Agreement

Problem

A large Fortune 200 company had worked with AWS through a series of one-year commitments. That approach had preserved flexibility, but it also limited the client’s ability to secure the deeper discounts and credits available through a longer-term arrangement.

The challenge was finding the right balance. The client needed a multi-year contract that would support its migration plans and expected growth in cloud consumption without taking on a commitment level that created unnecessary risk. To get there, it needed a clear view of future spend, a realistic commitment structure, and a strong position on the commercial terms that would matter over the life of the agreement.

"The best cloud agreements do more than improve pricing. They match long-term commitments to realistic consumption, preserve room to adapt, and create better economics for the workloads still to come."
- Brent Knight, Director

Solution

TC2 worked with the client to project expected growth in AWS spend over a longer-term contract and to evaluate the commitment levels that could support the business without overcommitting. That analysis gave the client a practical view of how much demand it could confidently place under contract and where flexibility still needed to be preserved.

In parallel, TC2 provided guidance and benchmarking input on the broader deal structure the client should pursue, including the commitment construct, discount levels, credits, and key commercial terms. We then supported the client through multiple rounds of negotiation with AWS as the parties refined the proposed commitment, discounts, and credits.

The result was a longer-term AWS agreement that better matched the client’s cloud growth plans and improved the economics available to support continued migration of workloads to AWS.

Results

Improved discounts and credits secured
Longer-term AWS agreement successfully negotiated
Commitment level aligned to projected cloud growth

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