Cloud Commits and Drawdown
Understand what an enterprise cloud commit is, how a marketplace purchase can retire (draw down) that committed cloud spend, and how the rules differ across AWS, Azure, and GCP.
Overview
An enterprise cloud commit is a contractual agreement between a cloud provider (AWS, Azure, or GCP) and a customer. The customer commits to a certain level of cloud spend or usage over a set period — in exchange, the provider gives them discounted pricing and other benefits.
When a customer buys a product through that cloud’s marketplace, some or all of the purchase can count against (“draw down”) that commitment instead of being billed as new spend. Each cloud has different rules for how much draws down and where the product must be hosted. Use this page to understand how commits work and to set accurate expectations with customers before they buy.
Commit Programs
Each cloud has its own committed-spend program that a marketplace purchase can retire. Depending on the cloud provider, the program goes by a different name:
| Cloud | Commit program |
|---|---|
| AWS | Enterprise Discount Program (EDP) / PPA (Private Pricing Agreement) — aws.amazon.com/pricing/enterprise |
| Azure | Enterprise Agreement (EA) / MACC (Microsoft Azure Consumption Commitment) — Azure consumption commitment benefit |
| GCP | Committed Use Discount (CUD) / committed spend — Committed use discounts |
How Enterprise Cloud Commits Work
A commit typically involves a minimum spend or usage commitment over a specified period (for example, one or three years), often with payment upfront, monthly, or a combination. In return, the customer receives:
- Tiered discounts based on the level of commitment.
- Predictable budgeting — costs for committed usage are known in advance.
- Resource assurance for critical workloads.
- Support for long-term planning as part of a broader cloud strategy.
Each provider structures its program a little differently:
- AWS Enterprise Discount Program (EDP) — Customers commit to a minimum level of AWS spend over a one- or three-year term. When they meet or exceed their committed spend, they receive discounted pricing on eligible services. EDPs can be applied to purchases made through AWS Marketplace.
- Azure Enterprise Agreement (EA) — Customers commit to a minimum level of Azure spend and receive discounted rates on Azure services, including purchases made through the Azure Marketplace. EAs give customers flexibility in managing cloud spend and optimizing costs for enterprise workloads.
- GCP Committed Use Discounts (CUD) — Customers commit to a certain amount of usage over a specified period and receive discounted pricing in return. CUDs can be applied to transactions on the GCP Marketplace and offer flexibility in instance type, region, and usage commitment.
How Commits Apply to Marketplace Transactions
When a customer buys software on a cloud marketplace, their enterprise commit determines how that purchase is billed.
- With an enterprise commit — The customer can draw down (retire) their commit when they purchase software on the marketplace. The purchase counts toward their committed spend, and they benefit from the discounted rates tied to their agreement.
- Without an enterprise commit — The customer pays standard rates. Any additional subscription or usage is simply added to their monthly cloud provider bill, and the purchase does not draw down any commit.
How Much Draws Down
The share of a purchase that retires commit varies by cloud.
| Cloud | Drawdown amount |
|---|---|
| AWS | Up to ~25% of commit* |
| Azure | 100% of the pretax amount — no cap |
| GCP | 100% of price; up to ~25% via a channel offer* |
What Gates Drawdown Per Cloud
This is the part that trips people up: AWS and Azure only retire commit if the product is hosted on their own cloud. GCP has no such requirement.
| Cloud | Hosting requirement | What gates drawdown |
|---|---|---|
| AWS | Fully on AWS (“Deployed on AWS” badge) | Where the software is deployed |
| Azure | Primarily on Azure (“Azure benefit eligible”; hybrid/on-prem excluded) | Where it’s hosted, and the purchase must go through the Azure portal path |
| GCP | No hosting requirement | Just needs to be a transactable listing (auto-eligible) |
If a Product Is Hosted Outside AWS or Azure
For a product hosted fully on GCP:
- AWS drawdown — not possible today. The customer can still buy through AWS Marketplace, but it won’t burn EDP/PPA commit. This would only change if a version of the product is hosted fully on AWS.
- Azure drawdown — not possible today. The customer can still list and sell on Azure, but it won’t burn MACC. Azure only grants “benefit eligible” status to Azure-hosted offers; GCP-hosted products don’t qualify.
- GCP drawdown — the best (and effectively only) fit. Once the GCP Marketplace listing is live, drawdown applies automatically through a private offer or MCPO — no extra hosting requirement to clear.
What This Means for Sellers
As a seller (ISV), the buyer’s commit status does not change how or whether you get paid.
- The seller is always paid in cash by each cloud provider at the point of disbursement, whether or not the buyer has an enterprise commit.
- Buyers with a commit may see discounted rates and can retire their commit against your product; buyers without one pay standard rates and cannot retire any commit.
Troubleshooting
| Issue | Possible cause | Resolution |
|---|---|---|
| Purchase went through but didn’t reduce the customer’s AWS EDP/PPA balance | Product isn’t fully hosted on AWS (“Deployed on AWS” badge requirement not met) | Confirm hosting architecture. If the product runs on another cloud, AWS drawdown isn’t available — set expectations with the customer before the sale. |
| Purchase went through but didn’t reduce the customer’s Azure MACC balance | Product isn’t primarily hosted on Azure, or the purchase didn’t go through the Azure portal path | Verify hosting location and confirm the transaction went through the correct Azure path. Hybrid/on-prem deployments are excluded from MACC benefit eligibility. |
| Unsure whether a GCP purchase will draw down commitment | N/A — GCP has no hosting requirement | Any transactable GCP Marketplace listing is auto-eligible; drawdown applies automatically once the private offer or MCPO is accepted. |
FAQ
Does GCP require the product to be hosted on GCP to draw down commitment?
No. GCP has no hosting requirement — any transactable listing is auto-eligible for drawdown.
Can a product hosted on GCP draw down an AWS or Azure commitment?
No. Both AWS and Azure only retire commit when the product is hosted on their own cloud.
Is the ~25% AWS/GCP channel-offer cap official?
No — it’s a typical negotiated term cited by partner sources, not a published figure. Confirm the exact cap in the customer’s agreement.
What does Azure require beyond hosting?
The purchase must also go through the Azure portal path to qualify for MACC benefit eligibility.
If you have further questions about enterprise cloud commits and transactions on cloud marketplaces, reach out to support@suger.io for guidance.