# AWS PPA/EDP Insurance & Shortfall FAQs

## EDP/PPA Shortfall Recovery Program

**1. What does the AWS Enterprise Discount Plan (EDP)/Private Pricing Agreement (PPA) Shortfall program do?**

The Shortfall recovery program is available to customers who are in the middle of an existing PPA/EDP and are facing a potential shortfall at the end of their current term and are looking for a partner who can help them minimize their true-up payment liability at the end of the term.

**a. When does it work?**

This service is available to any customer on an active PPA/EDP with at least 30 days before the end of the commitment term (and hence the due date of any outstanding true-up payment for unused commitment for the PPA/EDP term).

**b. What does it cost?**

This service is consultative and offered for free via Archera's free platform & corresponding FinOps success team, however as part of the service, recommendations of pre-payment for future commitments, AWS software marketplace purchases etc. may be actioned (with the consent of the customer) to minimize the outstanding true-up payment.

**2. What are the steps to activate the EDP/PPA Shortfall program?**

You would need to install Archera's free platform (optionally meeting with Archera's sales team beforehand to validate the solution is a fit) and then schedule a call with Archera's customer success team to encode PPA/EDP details into the platform (via the Financial Workbench tab). After sharing the details in the first meeting, Archera will prepare a set of plans & corresponding scenario forecasts in the tool to minimize any forecasted true-up payment liability. Then the customer can choose to action any (parts) of the plans they wish.

**3. How do we pay for the EDP/PPA shortfall program?**

The service is free and any associated cost to AWS, Archera (or any other 3rd party vendors) would be paid for directly via your AWS bill & AWS marketplace.

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## EDP/PPA Insurance Program

**4. What does the AWS EDP/PPA insurance program do?**

The PPA/EDP insurance program is available to customers who are considering signing a new PPA/EDP and are concerned about either the term length of the commitment (AWS pushing them from 3 to 5 years) or the size of the commitment, particularly in the "out years" of the contract (where AWS requires them to grow spend significantly relative to the earlier years of the contract).

**a. When does it work?**

The service is a separate contract that a customer signs with Archera alongside the PPA/EDP that guarantees coverage of some fraction of the PPA/EDP commitment for a given set of contract years. If in a given contract year the customer is short of their committed amount and has a true-up payment liability, Archera will guarantee to pay back the customer for the true-up they pay, up to the coverage amount, less any deductible that the PPA/EDP insurance contract may have.

**b. What does it cost?**

The cost of the PPA/EDP insurance contract is paid at the beginning of every covered year to Archera either via AWS marketplace (preferred) or direct via Stripe. It is calculated dynamically based on the coverage amount, covered years of the EDP/PPA, and deductible the customer selects. Quotes for these options can be generated dynamically by request to Archera's underwriting team.

**5. What are the steps to activate EDP/PPA insurance?**

You would need to install Archera's free platform (optionally meeting with Archera's sales team beforehand to validate the solution is a fit) and then schedule a call with Archera's customer success team to encode proposed PPA/EDP terms on the table. Archera will prepare a set of scenario forecasts with optional quotes in both slides/docs form and in the tool. Then the customer can choose to apply (or not) any of the proposed insurance policies they wish alongside closing their final EDP/PPA.

**6. How do we pay for the EDP/PPA insurance?**

The cost of the PPA/EDP insurance contract is paid at the beginning of every covered year as an upfront premium to Archera either via AWS marketplace (preferred, as it burns down the PPA/EDP commitment) or direct via Stripe.

## Related Resources

* [Adjusting Ownership of Guaranteed Commitment Account on AWS](https://docs.archera.ai/help-center/faq/adjust-commitment-ownership)
* [Archera for AWS CSPPA and ESPPA](https://docs.archera.ai/help-center/faq/aws-csppa-esppa)