Prior to configuring discounts in MontyCloud, ensure that, as an MSP, you evaluate critical factors so that discounts are applied correctly and align with your billing strategy.
The following factors help maintain control, transparency, and profitability when managing discounts in MontyCloud:
Reservation-Based Discounts: Determine whether discounts originate from MSP-level purchases (for example, RI/Savings Plans bought by the MSP) or from customer-level actions, as this affects who will benefit from the discount.
Pricing Plan Configuration: Set up pricing plans to control which discounts are passed through to customers and which are retained by the MSP, ensuring alignment with business objectives.
Selective Discount Pass-Through: Use MontyCloud features to selectively apply or exclude discounts for each customer, especially for RI/Savings Plans and volume discounts, based on contractual agreements.
Support Charge Handling: Decide whether AWS support charges should be removed or passed through to customers, as the default behavior may exclude these costs unless manually added back.
Transparency and Reporting: Ensure that discount application is consistently reflected in customer-facing dashboards and internal margin reports, avoiding discrepancies between AWS and MontyCloud data.
Cost Impact Assessment: Be aware that using AWS Billing Conductor for discount management incurs a monthly fee per account, so consider testing with a small group before scaling.
Customer Access Considerations: Understand what customers can see in MontyCloud and AWS Cost Explorer regarding discounts, especially if they have access to their own management accounts.
Manual Adjustments: Be prepared to manually adjust or assign discounts in MontyCloud when the default AWS behavior does not match the desired billing outcome.