Big changes are coming to AWS Marketplace, and if you’re a SaaS vendor or ISV, this one is going to hit close to home. Starting May 1, 2025, only software products fully hosted on AWS will count toward customer spend commitments. That means if your product isn’t 100% on AWS, your customers might look elsewhere to meet their cloud commitments, putting your sales and competitive edge at risk. 

We know this is a major shift, and it’s catching many SaaS and ISVs off guard. But you don’t have to navigate it alone. As an AWS Migration and Modernization Consulting Partner, Cloudelligent has helped countless companies migrate their software products to AWS seamlessly, efficiently, and with minimal disruption. We understand how much work goes into building a product, and the last thing you need is a policy change throwing a wrench in your plans. 

In this blog, we will break down what these AWS Marketplace changes mean for your business and how you can stay ahead of the curve. With the right strategy, you can turn this transition into a catalyst for sustainable growth in the AWS ecosystem. 

What’s Changing? AWS Marketplace’s New Rules

If you sell your software solution through AWS Marketplace, you’re probably familiar with how your customers use their AWS spend commitments, which are prearranged spending agreements with AWS that help them secure discounts. Historically, purchases made through AWS Marketplace contributed to these commitments, making it easier for customers to justify buying SaaS solutions like yours. But that’s about to change in a big way. 

Starting May 1, 2025, only SaaS products fully hosted on AWS will count toward customer spend commitments. This update aligns with the AWS customer agreement, which outlines the terms vendors must meet to maintain eligibility for AWS Marketplace benefits. 

Here’s a breakdown of what’s changing: 

• Before 2022: Only 50% of AWS Marketplace spend counted toward customer commitments. 
• After 2022: AWS increased this to 100% but capped it at 25% of the total commitment and excluded Professional Services. 
• New 2025 Rule: To qualify for commitment retirement, your entire SaaS application and control plane must be fully hosted on AWS. Multi-cloud solutions or partially hosted products will no longer count. Products that meet the requirements will be identified by the ‘Deployed on AWS’ badge. Additionally, if your product facilitates workload migrations to AWS, it must only support AWS as the target (no multi-cloud options). 

What Does This Mean for Your ISV and SaaS Product?

Let’s address the core question: how do these AWS Marketplace changes directly impact your business? This policy update isn’t merely a procedural adjustment; it’s a strategic shift that will influence your sales and competitive positioning. 

To enforce the new changes, AWS is introducing a ‘Deployed on AWS’ badge to ensure only fully compliant products qualify. That means: 

• Your SaaS application must be fully hosted on AWS. This includes both the application and control plane. 
• Multi-cloud solutions won’t qualify. If your product runs partially on another cloud, it won’t count toward customer commitments. 
• Migration-focused products have additional restrictions. If your software product helps migrate workloads to AWS, AWS must be the only target environment. If your product also supports non-AWS destinations, you’ll need to publish a separate version, which won’t qualify for commitment retirement. 

Previously, AWS only required a portion of your application to be hosted on an AWS account. Now, partial hosting isn’t enough. AWS is making its stance clear: be fully hosted or lose out. If you rely on AWS Marketplace as a revenue channel, ignoring this shift isn’t an option. That’s why it’s crucial to assess your hosting strategy now before these changes take effect.

How This Impacts Your Customers

Your customers rely on AWS spend commitments to maximize their cloud budgets. Until now, they could justify purchasing your software product through AWS Marketplace because it counted toward those commitments. But with the new rules taking effect in May 2025, that’s about to change. 

With only fully AWS-hosted SaaS solutions counting toward spend commitments, your customers will rethink their buying decisions. If your ISV or SaaS product doesn’t qualify: 

• They may look for alternatives that help them meet their spending goals. 
• Competitors fully hosted on AWS will have an immediate advantage in the Marketplace. 
• Even loyal AWS clients may switch to compliant solutions to stay within their AWS financial strategy. 

The ‘Deployed on AWS’ badge will become a key trust signal, helping customers quickly identify qualifying software solutions. Without it, your product may: 

• Be overlooked in favor of AWS-compliant alternatives. 
• Lose visibility and credibility in AWS Marketplace. 
• Miss out on revenue as AWS clients shift their budgets elsewhere. 

What SaaS and ISVs Must Do to Stay Competitive

With the May 2025 deadline approaching, now is the time to reassess your product’s architecture and SaaS Marketplace strategy: 

• Audit Your Hosting Environment: Is your entire ISV or SaaS application, including the control plane, running on AWS? If not, identify what needs to change. 
• Assess the Impact on Your Revenue: How much of your AWS Marketplace sales depend on customers using spend commitments? If a significant portion does, this shift could directly affect your bottom line. 
• Plan Your Migration Strategy: If your software product is partially hosted elsewhere, this would be the best time to consider a full move to AWS. The sooner you start, the smoother the transition. 
• Align with AWS’s Certification Criteria: Ensure your product qualifies for the ‘Deployed on AWS’ badge by submitting an architecture diagram and complying with AWS’s new hosting criteria. 

How Cloudelligent Can Help

Navigating these AWS Marketplace changes can feel overwhelming, but you don’t have to do it alone. At Cloudelligent, we specialize in helping SaaS and ISV solutions transition seamlessly to AWS and ensure you stay compliant, competitive, and ready for the future. Here’s how we can support you: 

• End-to-End AWS Migration Services: From initial assessment to full deployment, we handle the entire migration process so you can focus on growing your business. 
• AWS Foundational Technical Review (FTR) Support: We guide you through the AWS FTR process, helping you meet security, reliability, and operational best practices. 
• Architecture Optimization: We help you align your software solution with AWS’s ‘Deployed on AWS’ criteria, ensuring your product qualifies for the new AWS Marketplace requirements. 
• Cost & Performance Optimization: Migrating isn’t just about compliance; it’s about maximizing AWS’s benefits while keeping your infrastructure efficient and cost-effective. Our expertise in AWS cost management ensures you reduce unnecessary expenses while maintaining top performance. 
• Speed & Reliability: With the May 2025 deadline approaching, we ensure your transition is smooth, fast, and fully compliant—without disrupting your business. 

Don’t Get Left Behind: Make the Move to AWS with Cloudelligent

The AWS Marketplace rule change is coming fast and waiting until the last minute isn’t an option. If your SaaS or ISV product isn’t fully hosted on AWS, now is the time to act. Your customers will definitely prioritize AWS-compliant solutions, and competitors who meet the new requirements will gain an advantage. 

Cloudelligent specializes in ISV and SaaS migrations to AWS, helping businesses transition seamlessly while ensuring compliance with AWS’s latest policies. From architecture optimization to passing the AWS Foundational Technical Review (FTR), we provide the expertise you need to make this move with confidence. 

Don’t wait until the May 2025 deadline is right on top of you! So, why not reach out today? You can start your migration journey with our FREE AWS Migration Readiness Assessment (MRA).