Cloud costs are notoriously challenging to manage—even in stable conditions. In fact, 83% of CIOs report spending an average of 30% more on cloud infrastructure than originally planned.

Figure 1. AWS Cracks Down on Cloud Capacity Sharing: Essential Info for IT Buyers.

Now, for AWS customers, that challenge is set to grow. Starting June 1, Amazon is tightening its policies around Reserved Instances (RIs) and Savings Plans (SPs). Under the new rules, these discounted capacity options can only be used by a single end customer. This means AWS partners will no longer be allowed to purchase RIs or SPs and distribute or resell them across multiple clients; the buyer must consume what they purchase. Figure 1 shows AWS Cracks Down on Cloud Capacity Sharing: Essential Info for IT Buyers.

“Buyers need to know that flexibility is being eliminated,” said Ed Barrow, CEO of Cloud Capital. “This isn’t just a cleanup—it’s a hard reset on how cloud economics work.”

AWS Becomes More Disciplined with Cloud Capital Management

Amazon’s Elastic Compute Cloud (EC2) Reserved Instances (RIs) and Savings Plans (SPs) are designed to deliver cost savings for customers with steady, predictable workloads. RIs let enterprises reserve compute capacity in a specific Availability Zone ahead of time, ensuring resources are ready when needed. SPs, on the other hand, offer discounted rates in exchange for a committed usage level, typically measured in dollars per hour.

According to AWS, both RIs and SPs can offer discounts of up to 72% compared to standard on-demand pricing—making them an attractive option for long-term, consistent cloud usage. However, as AWS sharpens its capital allocation strategies, the rules governing these savings mechanisms are tightening, changing how enterprises and partners can leverage them.

What IT Buyers Should Do Now

Enterprises that previously secured discounted cloud resources through brokers or value-added resellers (VARs) will need to adjust quickly, as the opportunity for arbitrage is closing, noted Brunkard. Organizations should prepare for a modest increase in costs for steady-state workloads and anticipate a short-term scramble to unwind or reconfigure pooled commitments.

On the other hand, companies that purchase their own Reserved Instances (RIs) or Savings Plans (SPs), or negotiate volume discounts through AWS’s Enterprise Discount Program (EDP), should see little impact, Brunkard explained. The main change is that pricing will now have a more consistent baseline.

To stay ahead of this shift, organizations should audit their current exposure and ask their managed service providers (MSPs) to clarify which commitments are pooled and when they’re up for renewal, Brunkard recommended.

“Then, they can move future purchases to direct or per-tenant commitments managed under the master payer account or isolated customer sub-accounts,” he said. When it’s time to renew or add capacity, enterprises can leverage their total spend during EDP negotiations—AWS typically matches or beats the blended rates previously offered by brokers.

Brunkard also advised this is an ideal moment to focus on FinOps practices. “With pooled arbitrage gone, the next wave of savings will come from automated rightsizing, improved instance scheduling, and increased use of spot capacity,” he said.

• Analyze downside scenarios: Consider the impact if cloud usage drops or business plans shift unexpectedly.
• Challenge vendors: For vendors relying on pooling or reallocating RIs and SPs, what happens after the June 1 cutoff?
• Restructure procurement: Build flexibility into contracts by opting for shorter commitments, layered usage tiers, and terms aligned with finance goals.
• Identify better-fit partners: Look for vendors who absorb risk rather than simply resell AWS capacity at a margin.

Barrow warned that enterprises depending on vendor flexibility to manage overcommitments may face lower gross margins, budget overruns, and increased “finance-engineering misalignment.”

Vendors whose models hinge on RI and SP reallocation will see their risk profiles “changed overnight.” New commitments will become essentially non-cancellable financial obligations, exposing enterprises if cloud usage decreases or changes direction. Many vendors won’t be able to provide the same protections they once did.

“Many vendors built their business on AWS tolerance for rule-bending,” Barrow said. “With that tolerance gone, those models may collapse.”

He added that CFOs he’s spoken to view this shift as a financial restructuring. “This is more than a policy change; it’s a market correction.”

Source: NETWORK WORLD

Cite this article:

Priyadharshini S (2025), AWS Tightens Rules on Cloud Capacity Swapping: What IT Buyers Should Know, AnaTechMaz, pp.139