AWS is changing discount sharing rules for resellers.

Changes to AWS Reseller MSP Discount Sharing Starting June 2025

Beginning in June 2025, AWS will no longer allow reseller MSPs (also known as "Solution Providers") to pass on Reserved Instance (RI) or Savings Plan discounts to customers under a common AWS organization managed by the MSP. This policy change reinforces AWS's long-standing view that these savings should be allocated directly to individual customers, rather than shared across multiple customers via a reseller's account.

Currently, many MSPs purchase RIs and Savings Plans at the reseller or billing account level, then share the discounts across multiple customers. This change will prevent MSPs from using their payer account to share these discounts.

At North, we’ve spoken to hundreds of customers who have used traditional MSPs for cost optimization, many choosing to use North as a more secure alternative, yielding better cost savings. 

Why We Support This Change

We believe customers should manage their own AWS billing organization. This gives them full control over cost visibility, security policies, and billing, without relying on an MSP. We've also seen many MSPs keep most of the savings as margin, offering little real cost benefit to customers. This often leads to unclear billing data and a lack of transparency in savings.

We think the change is ultimately positive for AWS customers. If you’re working with a reseller or MSP that requires you to move your account into their organization, now is a great time to assess the ROI of that relationship. Resellers typically take a percentage of the discount but may not be incentivized to help you optimize your AWS usage, potentially leaving savings on the table.

How North Can Help

At North, we provide customers with insured and flexible commitments, allowing them to reduce costs while maintaining control over their AWS organization. Our Savings Plans and Reserved Instances are tailored to each customer and not shared across multiple customers. Our platform also helps businesses improve their FinOps operations with AI-driven tools, speeding up time-to-value and ensuring better cost management.

If you’re interested in exploring how North can help you optimize your cloud spend, get in touch with our team at hello@north.cloud.

FAQs

How will this change be enforced?
It’s unclear exactly how enforcement will work, but MSPs who violate these new terms could be penalized or removed from the AWS Solution Provider program.

Will customers be held liable?
No. Customers will not be held liable under this change, but it may affect the flexibility and long-term savings that MSPs can offer.

Why did AWS make this change?
AWS likely views MSPs spreading discounts across multiple customers as not aligned with the spirit of commitment-based discounts. We've also seen resellers use these programs to add margin, often without passing on the full savings to customers.

How can North help me achieve similar savings without violating AWS terms?
North uses insured commitments in your own AWS organization, which allows you to get deep savings with the flexibility to cancel anytime. This keeps you in control of your AWS environment.

When will this change take effect for current AWS resellers?
Starting June 2025, resellers will no longer be able to make new RI or Savings Plan purchases at the billing account layer. Existing reservations made before then will remain valid until their end date.