Cloud commit agreements:
what to check before you sign
The trade-off in a commit agreement
Commit agreements trade a promise to spend for a discount. They pay off while your business grows. The risk sits in the years it doesn't: when a migration slips, a product is cut or spending is restructured, the commitment stays and the discount can turn into a bill.
We have worked inside the hyperscalers, on the other side of these agreements. We know how they are structured, where an account team has room to move, and which terms the standard paper leaves out. That is the view we bring to your side of the table.
How the main agreements work
AWS Enterprise Discount Program. You commit to a minimum annual spend over a multi-year term in exchange for a discount across all of your AWS services and spend. It is separate from service-specific private pricing; the two can sometimes be combined, but only if that is agreed before the EDP is signed. If you spend less than the commitment, AWS bills the shortfall. Check how much AWS Marketplace spend counts toward the commitment, and whether the annual amounts rise faster than your real growth.
Microsoft Azure Consumption Commitment (MACC). You commit to a total Azure spend over the term, sometimes with interim milestones. If a milestone or the total is missed, Microsoft charges the difference, normally as Azure prepayment credit. Consumption paid for with Microsoft credits does not count toward the commitment, and only Marketplace offers marked as Azure benefit eligible do.
Oracle Cloud Universal Credits. Under the Annual Flex model you prepay a year of credits at a discount. By default, credits left at the end of the year expire. Carrying unused credits forward is possible only if it is negotiated into the contract.
Google Cloud and UAE sovereign cloud providers. These offer their own committed spend and capacity agreements. The same questions apply, with extra attention to dedicated capacity, data residency obligations and the cost of leaving.
Ten things to check before you sign
Shortfall. What you owe if spend falls short, and whether it is billed in cash, converted to credit or carried into the next term.
Ramp. Whether yearly amounts follow your actual plan, and whether you can reset them if a migration or launch slips.
Business change. Whether the commitment moves with an acquisition, disposal or restructure, and which group companies' spend counts.
What counts. Whether marketplace software, support fees and reserved capacity count toward the commitment, and at list or discounted price.
Discount stacking. How the commitment discount combines with savings plans, reservations and other programmes.
Credits. Whether migration and promotional credits count toward the commitment, and when they expire.
Migration support. What funding the provider will offer to bring new workloads across, for both product usage and professional services, and the conditions attached, such as eligibility, milestones, clawback and expiry.
AI and GPU. Whether new AI services and GPU capacity are covered by the discount, priced separately or need their own commitment.
Exit. Portability, termination rights and automatic renewal.
Data transfer out. Moving data out of a hyperscaler is one of the most common unexpected charges. The right network design can reduce or remove these charges while improving security and performance, and it is far easier to plan before you commit.
Discuss a renewal
Advice for buyers on these agreements comes through Contracts & Tenders for Cloud and AI, and on the spend behind them through Infrastructure & AI Cost Review.