Operations Management

Procuring Software on AWS Marketplace - SaaS Subscriptions and Private Offers

Procure third-party software in three delivery models (AMI, container, SaaS) and consolidate billing with AWS. Learn about organization-wide governance with Private Marketplace and automating contract management.

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Overview of Marketplace

AWS Marketplace is a digital catalog where you can discover, purchase, and deploy third-party software, data, and services. Thousands of products are available across four categories: AMI (Amazon Machine Image), container images, SaaS, and professional services. Charges for purchased products are consolidated into your AWS bill, eliminating the need for separate vendor contracts and billing processes. Integration with Organizations lets you centrally manage procurement across your organization, and Private Marketplace enables governance that restricts purchases to approved products only. Traditional software procurement required weeks for individual vendor negotiations, license management, and billing processing, but Marketplace lets you complete deployment in just a few clicks.

Procurement Models and Contract Management

Marketplace offers multiple pricing models. Pay-as-you-go (hourly, per user, per data volume) is a flexible model where you pay only for what you use. Annual contracts offer discounts by prepaying for one year. BYOL (Bring Your Own License) lets you use existing licenses in your AWS environment. Free trials let you evaluate products before purchasing. The Contract API lets you programmatically manage contract creation, updates, and cancellations, and you can deploy Marketplace products from CloudFormation templates. The Marketplace Metering Service lets you define custom billing metrics for flexible usage-based pricing.

Private Marketplace and Governance

Private Marketplace is a feature that restricts purchases to only products approved by your organization's administrators. You enable Private Marketplace from the Organizations management account and create a catalog of approved products. You can set different catalogs per OU (organizational unit), allowing development teams access to development tools only and security teams to security products only. A product request workflow lets users request the addition of unapproved products, which administrators can then approve or reject. Integration with AWS Service Catalog lets you create portfolios that include Marketplace products and standardize self-service provisioning. For more on streamlining software procurement, related books on Amazon can also be helpful.

Marketplace Pricing

There is no charge for using AWS Marketplace itself. Only the charges for purchased products appear on your AWS bill. Product pricing is set by vendors and varies by product, including pay-as-you-go, monthly fixed, and annual contracts. If you use Organizations consolidated billing, all Marketplace purchases across accounts are aggregated into the management account's bill. Use Cost Explorer to analyze Marketplace spending by service and account, and optimize by canceling unnecessary subscriptions and adjusting cost allocation. Savings Plans and Reserved Instances discounts do not apply to Marketplace products, but some vendors offer their own long-term contract discounts.

Summary

AWS Marketplace is a digital catalog that integrates third-party software procurement, deployment, and billing with AWS. Private Marketplace establishes organization-wide procurement governance, and the Contract API automates contract management. AWS billing integration eliminates separate vendor contracts and billing processes, dramatically streamlining the procurement process.

Related Services

AWS MarketplaceA digital catalog for finding, purchasing, and deploying third-party softwareAWS OrganizationsA service for centrally managing multiple AWS accountsAWS Service CatalogA catalog service for delivering approved IT services across your organization via self-service

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