What CFOs Must Do Now to Survive the Cloud Commitment Reset

If you’ve made it to part three of this series, you probably don’t need another reminder that June 1st 2025 is going to change how AWS cloud finance works.

AWS is closing the loopholes. The commitment games are ending. And the comfortable ambiguity around what “locked-in” cloud spend really means is being replaced by something much more rigid, and much more real.

But here’s the hard part: this shift doesn’t just land in the laps of engineering leaders or infrastructure vendors. It lands squarely on yours.

As a CFO, you now have to answer a new set of questions:

• What is our actual exposure?
• What’s going to hit our P&L?
• How much of our forecast is at risk if things don’t go to plan?
  
  

And perhaps most importantly: What’s your plan B?

This post is for you. Not to scare you (though the risk is real), but to give you a practical roadmap for how to get ahead of the shift, and how to come out stronger on the other side.

‍

This isn’t just a vendor problem. It’s a finance problem.

Let’s get something out of the way: this change is not a niche procurement detail. It's not just “an engineering thing” or a technical operations tweak.

This is about financial exposure, contractual obligations, and balance sheet risk. And if you’re not prepared, you could find yourself holding multi-year liabilities that your team didn’t fully understand when they signed them. The old way made that feel OK. Because vendors had workarounds. Because everyone said you could “get out of it later.”

And truthfully, that worked for a while. But now that AWS is tightening the rules, the weight of those commitments shifts, right onto your books.

‍

You need to know where you stand, fast

This may sound obvious, but you’d be surprised how many companies we talk to that can’t answer a basic question:  “How much of our cloud spend is committed, and what happens if we stop using it?”.

So the first step is simple, but crucial. Start by gathering a full view of:

• The total value and term of your existing Reserved Instances and Savings Plans
• Which accounts and services they’re tied to
• The usage assumptions behind those deals
  
  

Then ask: Were any of these signed under the assumption that we could “optimize” our way out later? Because if your current commitment structure only works in a flexible environment, it won’t survive what’s coming.

There may be exceptions for contracts signed before June 1, 2025, but only if they’re properly documented and your vendor has secured AWS’s approval to continue operating under those terms.

‍

Quantify the downside. Don’t wait until it shows up in your numbers.

Most commitment models are built on optimistic projections. We assume growth. We assume stability. We assume no surprises.

But let’s be honest: startups pivot. Forecasts shift. Products get deprioritized. Engineering roadmaps change. So the next question is: What’s the damage if we’re wrong?

Work with your FP&A or cloud finance partner to stress-test your current commitment structure. Ask:

• If we had to hold every commitment to term, what would our total exposure be?
• How would that affect our gross margin if usage drops?
• What does this look like under a flat or negative growth scenario?

If usage falls short, you risk stranded costs that could erode gross margin and create unplanned hits to EBITDA.

This isn’t just an accounting exercise, it’s a risk forecast. And it may be the difference between staying ahead of the change or getting blindsided in Q3.

‍

Ask your vendors the questions you’ve avoided until now

For years, vendors have helped companies get out of tough spots. That’s part of their value. But now, it’s fair, and essential, to challenge how they’re doing it.

Set up a direct, candid conversation. You’re not looking for spin, you’re looking for clarity. Ask:

• What techniques are you currently using to manage our commitments?
• Do those depend on group-buying, pooling or sub-account transfers?
• Are any of your existing commitments exempt from this change? Has that been confirmed in writing by AWS?
• What happens if AWS starts actively shutting down those tactics?
  
  

If their model relies on the very flexibility AWS is removing, they may not be able to help when it matters most. And if the answer is vague, that’s your answer.

‍

Don’t reach for the old playbook, rebuild your strategy instead

You might be tempted to do what’s worked before: Re-sign, re-commit, renew, then trust your vendors or internal team to “optimize later.” Don’t.

The game has changed. The playbook that worked in 2022-2023 won’t hold up in 2025.
‍This is the moment to step back and design a cloud finance model that actually matches your business:

• Can you structure shorter-term commitments aligned with cash flow milestones?
• Can you layer usage tiers with built-in flexibility, rather than betting on max usage?
• Can you use a partner that prices and manages risk, rather than pushing it to you?

Treat this like any other financial restructuring initiative: clarity, accountability, protection.

‍

The best CFOs we work with aren’t just trying to save money. They’re trying to gain control.

This is where the old cost optimization mindset falls short. Because optimizing for savings is not the same as managing exposure.

Right now, what matters most isn’t how much discount you’re getting. It’s whether your cost structure is safe, sane, and adaptable, because if it’s not, that 30% discount can easily turn into 60% wasted spend.

And in this market, you don’t have the runway to absorb that hit.

‍

It’s not too late, but the clock is ticking

We’ve said it before, but it bears repeating: June 1st is a hard line in the sand.

By that date, AWS is expected to start cracking down on the most common loopholes and technical workarounds. That means if your cost model depends on those tricks, you’re running out of road.

But there’s still time to adjust. If you move now, you can:

• Identify and neutralize your riskiest commitments
• Push for more sustainable commercial terms
• Transition to a more resilient cloud finance structure
• Avoid explaining a sudden margin drop to your board in Q2
  
  

This doesn’t require a total overhaul overnight. But it does require intent, and action.

‍

A quick recap: what you should do this month

If you’re feeling overwhelmed, that’s normal. Here’s a simplified action plan to get ahead of the shift:

1. Audit your commitments – Know what you’ve signed and what assumptions you made
2. Model your downside – Quantify what happens if usage doesn’t meet those commitments
3. Challenge your vendors – Understand if their strategy will survive the AWS crackdown
4. Restructure your procurement model – Build flexibility into your financial planning
5. Explore better options – Consider partners that help you access savings without the risk
   
   

You’re not alone in this. We’ve walked dozens of CFOs through this shift, some of them just starting to panic, others already building toward a better model. You’ve still got time to act. But the window is closing.

We’re helping CFOs quantify their exposure and restructure their strategy for what’s next. If you’re ready to take control, let’s talk. No pitch. Just clarity.

In the final post of this series, we’ll show you how Cloud Capital is solving this exact problem. Not with optimization tools or reselling tricks, but by completely rethinking how cloud commitments should work for modern finance teams.

We’ll show how our model:

• Absorbs the risk on your behalf
• Gives you full pricing transparency
• Keeps you aligned with AWS without locking you into exposure
• Lets you forecast and flex without fear