Cloud Credits for Growing Companies: How Mid-Market Businesses Get $500K-$2M in Savings

Mid-market companies ($10M-$500M revenue, spending $50K-$500K/month on cloud) occupy a unique position: too large for startup programs, too small for Fortune 500 enterprise deals. Yet this gap represents the biggest opportunity for cloud credit negotiation.

Quick Facts: Mid-market companies can negotiate 15-35% cost reductions through credits and discounts. Average mid-market cloud spend: $200K-$300K/month ($2.4M-$3.6M/year). Potential annual savings: $500K-$2M through strategic credit programs and negotiations.

Why mid-market has leverage: You're in the sweet spot where cloud providers want to lock you in before you become an enterprise customer. They'll offer aggressive credits to prevent you from switching providers or going multi-cloud.

This guide shows you exactly how to extract maximum value through committed use discounts, migration credits, enterprise agreements, and partner programs specifically designed for companies in your growth stage.

Committed Use Discounts: Lock In 20-40% Savings Immediately

The fastest way to secure significant credits is through committed use agreements. Cloud providers offer substantial discounts when you commit to specific spending levels over 1-3 years.

AWS Savings Plans and Reserved Instances

Compute Savings Plans (Most Flexible)

• Commit to a specific hourly spend (e.g., $50/hour = ~$438K/year)
• Automatically applies to EC2, Fargate, and Lambda
• 1-year commitment: 17-20% discount
• 3-year commitment: 30-40% discount
• Can change instance types, regions, and operating systems

EC2 Instance Savings Plans

• Tied to specific instance families (e.g., m5, c5)
• 1-year: 20-25% discount
• 3-year: 40-50% discount
• Best for stable, predictable workloads

Reserved Instances (For Databases)

• RDS, ElastiCache, Redshift, OpenSearch
• 1-year: 25-35% discount
• 3-year: 40-60% discount
• Recommended for production databases

Real Example: A SaaS company spending $250K/month on AWS committed to $2M in Compute Savings Plans (covering 66% of stable usage). Saved: $600K first year (20% on committed amount). Paid: $2.4M instead of $3M.

How to implement:

• Analyze 3-6 months of usage patterns in AWS Cost Explorer
• Identify steady-state baseline (usually 60-70% of usage)
• Commit to covering baseline with Savings Plans
• Leave 30-40% flexible for growth and variable workloads

Google Cloud Committed Use Discounts (CUDs)

Spend-Based Commitments

• Commit to minimum hourly spend across all compute resources
• 1-year: 15-25% discount
• 3-year: 30-50% discount
• Applies automatically to Compute Engine, GKE, Cloud SQL

Flexible CUDs (New in 2025)

• Google's answer to AWS Compute Savings Plans
• Commit to hourly spend, apply across any compute service
• Can move between regions and machine types
• 1-year: 18-28% discount
• 3-year: 35-52% discount

Pro tip: Google is most aggressive with CUD discounts when you're migrating from AWS or Azure. Mention you're "evaluating multi-cloud" in negotiations—expect an extra 5-10% discount boost.

Azure Reserved Instances and Savings Plans

Azure Reserved VM Instances

• 1-year: 20-30% discount
• 3-year: 40-60% discount
• Can exchange or cancel with penalties
• Apply to specific VM series

SQL Database Reserved Capacity

• 1-year: 20-33% discount
• 3-year: 40-65% discount
• Massive savings for database-heavy applications

Pro tip for mid-market: If you're spending $100K+/month, don't buy Savings Plans through self-service. Contact Microsoft sales for an enterprise agreement with better rates (typically 5-15% better than public pricing).

Migration Credits: $100K-$500K for Switching Providers

Cloud providers desperately want to steal customers from competitors. If you're considering switching from AWS to GCP, GCP to Azure, or going multi-cloud, migration credits are your biggest negotiation lever.

What Providers Offer

• 10-30% of your annual committed spend as upfront credits
• Free migration consulting and technical support
• Discounted rates for first 1-2 years
• Training credits for your team
• Architectural reviews and optimization assessments

Real Migration Credit Examples

Example 1: AWS to Google Cloud

• Current AWS spend: $400K/month ($4.8M/year)
• Committed to Google: $3M/year for 3 years
• Received:

• $450K in migration credits (15% of year 1 commitment)
• $200K in professional services credits
• 20% discount on committed spend (additional $600K/year savings)
• Total year 1 value: $1.25M

Example 2: Azure to AWS

• Current Azure spend: $150K/month ($1.8M/year)
• Committed to AWS: $2M/year for 2 years
• Received:

• $300K in migration credits (15% of commitment)
• Free AWS Professional Services engagement ($100K value)
• 12 months of Business Support included
• Total value: $400K+

How to Negotiate Migration Credits (Step-by-Step)

Step 1: Document current spend (30 days before negotiation)

• Export 12 months of cloud bills
• Categorize by service type (compute, storage, database, etc.)
• Calculate average monthly spend and growth rate
• Identify your largest cost categories (this is your leverage)

Step 2: Create a competitive scenario

• Reach out to 2-3 cloud providers simultaneously
• Use language like: "We're evaluating a multi-cloud strategy"
• Share high-level spend numbers (not detailed breakdowns yet)
• Ask each provider: "What migration support do you offer for companies spending $X/month?"

Step 3: Get competing offers

• Request formal proposals from each provider
• Ask specifically for migration credits (as % of commitment)
• Professional services support
• Training and certification credits
• Discounted pricing for first 1-3 years
• Dedicated technical account manager

Step 4: Play offers against each other

• Share Google's offer with AWS: "Google is offering 20% migration credits, can you match?"
• Share AWS's offer with Google: "AWS is providing free Professional Services, what can you add?"
• Negotiate back and forth 2-3 times

Step 5: Finalize with maximum value

• Get everything in writing (proposal document or formal agreement)
• Include credit expiration terms (push for 24+ months)
• Clarify which services credits apply to
• Lock in committed use discounts ON TOP OF migration credits

Critical timing: Never migrate immediately. Take 3-6 months for a hybrid period where you're running production on Provider A while building on Provider B. This maintains negotiation leverage with both providers.

When You Have Maximum Migration Leverage

Scenario 1: You're all-in on one provider

• Currently: 100% AWS, spending $200K+/month
• Leverage: "We're evaluating Google Cloud to reduce vendor lock-in"
• Expected credits: 15-25% of year 1 commitment

Scenario 2: Your contract is expiring

• Leverage: "Our AWS EA expires in 90 days, we're reviewing all options"
• Timing: Start negotiations 6 months before contract expiration
• Expected credits: 20-30% of new commitment

Scenario 3: You're growing rapidly

• Leverage: "We're at $100K/month now, projecting $500K/month in 18 months"
• Providers love growth stories—they'll invest in migration now to capture future spend
• Expected credits: 25-40% of year 1 commitment

Enterprise Agreements (EAs) for Mid-Market: $500K-$5M Commitments

Enterprise Agreements aren't just for Fortune 500 companies. Mid-market companies spending $500K+/year can negotiate favorable EAs with significantly better economics than self-service pricing.

AWS Enterprise Discount Program (EDP)

Minimum commitment: Typically $1M over 3 years (but flexible down to $500K for fast-growing companies)

What you get:

• 5-15% discount on all AWS usage (applies automatically)
• Higher discounts on specific service categories
• Dedicated Technical Account Manager (TAM)
• AWS Business or Enterprise Support included
• Quarterly business reviews
• Architectural guidance and best practices
• Training credits for certifications

How EDP discounts work (tiered structure):

• $1M-$3M/year: 5-8% base discount
• $3M-$10M/year: 8-12% base discount
• $10M+/year: 12-15%+ base discount

Plus additional discounts on specific services:

• EC2: 10-20% on top of base discount
• S3: 15-25%
• Data transfer: 20-30%
• RDS: 10-15%

Real example: Company spending $3M/year signs 3-year EDP. Base discount: 10% = $300K/year. Additional EC2 discounts: 15% on $1.5M = $225K/year. Additional S3 discounts: 20% on $600K = $120K/year. Total annual savings: $645K (21.5% effective discount). 3-year value: $1.935M.

Pro tip: AWS is most flexible in Q4 (October-December) when they're closing annual quotas. Negotiate in November-December for 15-25% better terms.

Google Cloud Enterprise Agreements

Minimum commitment: $500K-$1M over 3 years

What you get:

• 10-25% discount on compute and storage
• Dedicated Customer Engineer
• Premium support included
• Quarterly business reviews and roadmap planning
• Early access to new products and features
• Training and certification credits
• Co-innovation opportunities

Google's unique advantage: Negotiated CUDs

Instead of buying public CUDs, enterprise customers can negotiate custom committed use discounts:

• Standard 3-year CUD: 50% discount
• Negotiated 3-year EA with CUD: 60-65% discount
• Additional 5-10% through custom terms

Pro tip: Google is most aggressive when competing against AWS. If you're currently on AWS, emphasize "evaluating alternatives" to get 20-30% better offers than existing GCP customers.

Microsoft Azure Enterprise Agreement (EA)

Minimum commitment: $500K over 3 years (flexible for fast-growing companies)

Azure's unique structure: MACC (Microsoft Azure Consumption Commitment)

• Commit to minimum annual consumption
• Credits are applied as you consume services
• No upfront payment required
• Flexible across all Azure services

MACC discount tiers:

• $500K-$1M/year: 10-15% discount
• $1M-$5M/year: 15-25% discount
• $5M+/year: 25-35% discount

Pro tip: If you're already a Microsoft 365 customer, you have significantly more leverage. Threaten to evaluate Google Workspace—Microsoft will bundle Azure discounts with M365 renewals to prevent switching.

Partner and Reseller Programs: Hidden 10-20% Discounts

Cloud resellers and managed service providers (MSPs) can offer credits and discounts that aren't available through direct cloud provider relationships—especially for mid-market companies.

How Cloud Resellers Work

Resellers buy cloud services in bulk from AWS/GCP/Azure at discounted rates, then resell to customers. Their margin comes from the difference between wholesale and retail pricing, but they often pass through portions of their discount to win customers.

Benefits of buying through resellers:

• 5-15% discount on top of standard pricing
• Bundled support and management services
• Simplified billing (one invoice for multi-cloud)
• Payment flexibility (net-30 or net-60 terms instead of credit card)
• Additional services: cost optimization, architecture reviews, migration support

When Resellers Make Sense

Good fit if you:

• Spend $50K-$500K/month (sweet spot for reseller economics)
• Need managed services or ongoing support
• Want simplified multi-cloud billing
• Lack in-house cloud expertise
• Need flexible payment terms

Not a good fit if you:

• Spend $1M+/month (negotiate directly with cloud providers for better rates)
• Have strong in-house DevOps team
• Already have Enterprise Agreement with cloud provider
• Need direct access to cloud provider's roadmap and product teams

Timing Your Negotiations: When to Ask for Credits

Mid-market companies should re-negotiate cloud agreements at least annually. Here's when you have maximum leverage:

Q4 (October-December): Cloud Provider Quota Season

• AWS, GCP, Azure sales teams have annual quotas
• Desperate to close deals before December 31st
• Expect 20-40% better offers in Q4 vs. Q1
• Best weeks: Last 2 weeks of November, first 2 weeks of December

Strategy: Start conversations in October, drag negotiations into late November, ask for "final concessions" in early December.

After Funding Rounds

• Raised Series B/C and have growth plans?
• Cloud providers want to lock in your growth
• Leverage: "We just raised $20M, planning to 3x infrastructure spend"
• Negotiate 3-year agreements with growth commitments

Critical: Never negotiate when you're desperate or on a tight deadline. Cloud providers can sense urgency and won't offer best terms. Always give yourself 3+ months.

Frequently Asked Questions

Can I negotiate enterprise discounts with multiple cloud providers simultaneously?

Yes, and you should! Creating competitive pressure is the fastest way to get better offers. Tell AWS you're "evaluating GCP," tell GCP you're "heavily invested in AWS." Play them against each other for 2-3 rounds of negotiations.

What if I can't meet my committed spend?

Most EAs and Savings Plans require you to pay for the commitment whether you use it or not. However, many providers offer flexibility: AWS allows Savings Plan exchanges, Google offers CUD modifications mid-term, Azure MACC is more flexible than traditional EAs. Always negotiate flexibility clauses into your agreement.

Should I commit for 1 year or 3 years?

1-year if: You're growing rapidly, uncertain about provider choice, or want flexibility. Discount: 15-25%. 3-year if: You have predictable workloads, committed to the provider, or want maximum savings. Discount: 30-50%. Most mid-market companies choose 1-year for flexibility while still getting meaningful discounts.

How do I know if I'm getting a good deal?

Benchmark against these targets: Spending $50K-$150K/month: Aim for 15-25% total discount. Spending $150K-$300K/month: Aim for 20-30% total discount. Spending $300K+/month: Aim for 25-35%+ total discount. Use CloudShip to analyze your bills and identify exactly where you should be getting better rates—our AI benchmarks your pricing against industry standards.

Next Steps: Create Your Mid-Market Cloud Credit Strategy

30-Day Action Plan

Week 1: Audit Current State

• Export 12 months of cloud bills from all providers
• Calculate total annual spend and monthly average
• Identify top 5 cost categories
• Determine current discount rate (if any)
• Review existing contracts and expiration dates

Week 2: Build Negotiation Leverage

• Create 12-24 month infrastructure forecast
• Document growth plans and new projects
• Research competitor providers and their offerings
• Identify pain points with current provider
• Calculate potential savings from switching providers

Week 3: Initiate Conversations

• Contact current cloud provider account manager
• Reach out to 1-2 alternative cloud providers
• Request proposals for committed use discounts or EAs
• Ask about migration credits if switching
• Schedule calls with sales teams

Week 4: Negotiate and Decide

• Compare proposals side-by-side
• Play offers against each other for improvements
• Negotiate final terms and discounts
• Get everything documented in formal agreement
• Make decision and sign contract

Expected Results by Company Size

$50K-$150K/month cloud spend ($600K-$1.8M/year)

• Strategy: Committed use discounts + reseller partnership
• Expected savings: $100K-$400K/year (15-25%)

$150K-$300K/month cloud spend ($1.8M-$3.6M/year)

• Strategy: Enterprise Agreement + migration credits
• Expected savings: $400K-$900K/year (20-30%)

$300K-$500K/month cloud spend ($3.6M-$6M/year)

• Strategy: Multi-year EA + competitive bidding
• Expected savings: $900K-$2M/year (25-35%)

Beyond Credits: Sustainable Cost Optimization with CloudShip

Credits and discounts address pricing, but not waste. The average mid-market company wastes 30-45% of cloud spend on:

• Over-provisioned instances
• Unused resources (zombie servers, orphaned storage)
• Inefficient architectures
• Missing Savings Plans on stable workloads
• Expensive data transfer patterns

Combining negotiated credits with AI-powered cost optimization addresses both pricing AND waste:

• Negotiate 25% discount through EA = $750K savings on $3M spend
• Eliminate 30% waste through optimization = $900K additional savings
• Total savings: $1.65M (55% reduction)

CloudShip helps mid-market companies automatically identify and fix cloud waste—without needing dedicated FinOps teams:

• Analyze your bills: Upload cost reports, our AI identifies waste patterns
• Generate fixes: Create Terraform PRs to rightsize instances, remove unused resources
• Track savings: Monitor actual savings vs. projections over time
• Benchmark pricing: Compare your rates against industry standards to ensure you got a good deal
• Forecast burn rate: Predict future spend and identify optimization opportunities early

Best of all? CloudShip works without needing access to your cloud accounts. You export cost reports, our AI analyzes them locally, and generates pull requests for your team to review. Your credentials never leave your infrastructure.

Real mid-market example: A Series B fintech company (spending $300K/month) negotiated a 25% AWS EDP discount ($900K/year savings). CloudShip then identified $1.2M/year in waste (unused resources, oversized databases, inefficient S3 storage classes). Total savings: $2.1M/year (58% reduction). Credits addressed pricing; AI FinOps addressed waste.