Usage metering

For software as a service (SaaS) subscriptions, the seller meters for all usage, and then customers are billed by AWS based on the metering records that the seller provides.
For SaaS contracts, the seller meters for usage beyond a customer’s contract entitlements. When the application meters usage for a customer, the application is providing AWS with a quantity of usage accrued. The application meters for the pricing dimensions that the seller defined when they created their product, such as gigabytes transferred or hosts scanned in a given hour.
For example, if they charge based on the amount of data sent into the application, they can measure the amount of data and send a corresponding metering record once an hour. AWS calculates a customer’s bill using the metering data along with the prices that the seller-provided when they created their product.

AWS can only bill customers for usage of the product upon receiving metering records from the seller. The sellers are responsible for ensuring their product’s metering records are successfully transmitted and received. They can use AWS CloudTrail to verify the records that they send are accurate. They can also use the information to perform audits over time.

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Labra FlyOut helps to meter your product usage from the platform. Sellers can meter from the Labra Platform, where we do provide the functionality to submit the metering of the products purchased by buyers. Then, we report those usages to the AWS on the seller’s behalf. Sellers will also get the notification on their mail and Slack (if configured) with the Labra once the metering is submitted to AWS, along with their metering statuses.

Steps to submit metering records from Labra Flyout:

Open Labra Flyout Platform
Navigate to the Product Listing page from the left-hand sidebar.
Inside the listings table locate the row with the listing you want to meter for.
Once identified under the column titled 'Actions', click on 'View contracts and send metering information' for the selected listing.
Inside the Contracts page, you can input usage details for each contract you want to meter.
Once usage has been written down in the right bottom corner field you can:

Select all contracts and send metering information by clicking on the checkbox at the top of the Contracts page.
Select only those contracts that you want to send metering information by clicking on each contract individually.

Once all contracts have been selected and usage details have been added, you can click on the button at the bottom right corner of the screen, 'Submit metering info'.
Lastly, in the pop-up that appears, you will have to click on the 'Confirm send' button to confirm the metering records being sent.

Overview of how usage metering works in AWS Marketplace

Metering Plan Definition:

Sellers (software vendors or providers) define a metering plan that outlines how usage will be measured and reported. This plan includes details such as the unit of measure, pricing information, and any relevant metrics.

Integration with AWS Marketplace Metering Service:

Sellers integrate their software products with the AWS Marketplace Metering Service. This service enables the collection and reporting of usage data.

Data Collection:

The integrated software collects usage data based on the defined metering plan. This data may include metrics such as the number of users, data storage, processing units, or any other relevant measure, depending on the nature of the software.

Usage Reporting:

Sellers periodically report the collected usage data to the AWS Marketplace Metering Service. This is usually done through API calls.

Customer Billing:

AWS Marketplace aggregates the reported usage data across all customers and generates billing information for each customer based on their actual usage. Customers are billed according to the pricing structure defined by the seller.

Customer Visibility:

Customers can view their usage and billing information through the AWS Management Console. This transparency helps customers understand their consumption and associated costs.

Automation and Scalability:

The entire process is designed to be automated and scalable. Sellers and customers can rely on the AWS Marketplace infrastructure to handle the metering, reporting, and billing processes efficiently.

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Usage metering in AWS Marketplace benefits both sellers and customers. Sellers can flexibly price their software based on actual usage, while customers have the advantage of paying for what they consume. This model aligns with the pay-as-you-go cloud services' pay-as-you-go and on-demand nature, a cost-effective and scalable solution for both parties.

FAQ

Q. How can I meter from Labra FlyOut?

A. The seller can meter from the Labra Platform, where we provide the functionality to submit the metering of products purchased by the buyer. Once the seller logs in to the Labra Platform and has a few products already listed with us, they can click on the contract icon provided next to the product for which they want to meter. After clicking on the contracts icon, they will be redirected to the Contract Listing Page, where they can see all the contracts that are available for different buyers of that product. There, they can update, add the meterings on the text field provided next to different dimensions, and submit it. Then, Labra will send these meterings to AWS on the seller’s behalf and also send the notification via email and Slack (if configured).

Seller logs in to the Labra FlyOut → Go to products listing page → Click on the contracts icon for the product → Select the contracts that you want to meter and add the usage → Click on submit → Click on Confirm Submit metering

Q. How do I define a Metering Plan?

A. Sellers define a Metering Plan by specifying the unit of measure, pricing details, and relevant metrics for their software product. This plan serves as the basis for tracking and reporting usage.

Q. What metrics can be used for Usage Metering?

A. Metrics can vary based on the nature of the software. Common metrics include the number of users, data volume processed or stored, compute resources utilized, and transaction counts.

Q. How frequently should usage data be reported?

A. Sellers typically report usage data periodically, often at regular intervals such as daily or monthly. The frequency depends on the agreement between the seller and AWS Marketplace.

Q. Can I update my Metering Plan after it is defined?

A. Yes, sellers can update their Metering Plans to adapt to changing business needs. This flexibility allows for adjustments to metrics, pricing, and other plan details.

Q. What is the AWS Marketplace Metering Service API used for?

A. The API is used by sellers to submit usage data to AWS Marketplace. It facilitates automated reporting and integration with the seller's systems.

Q. Can customers view their usage and billing information?

A. Yes, customers can view their usage and billing information through the AWS Management Console. This transparency helps them understand their consumption and associated costs.

Q. What is the benefit of using Usage Metering in AWS Marketplace?

A. Usage Metering allows for more flexible and cost-effective pricing models, as customers only pay for the actual resources or features they use. It provides transparency and control over software consumption.

Q. Can customers set up budgets and alerts for their AWS Marketplace usage?

A. Yes, customers can set up budgets and alerts to monitor their AWS Marketplace spending. This helps them manage costs and avoid unexpected charges.

Q. Are there any restrictions on the types of software that can use Usage Metering?

A. While many types of software can leverage Usage Metering, there may be some restrictions based on the nature of the software. Sellers should review the AWS Marketplace guidelines to ensure compliance or consult with us.

Q. What happens if a customer exceeds their subscribed usage limits?

A. AWS Marketplace allows sellers to define overage charges or take specific actions if a customer exceeds their subscribed usage limits. This is typically part of the Metering Plan definition.

Q. Is AWS Marketplace Usage Metering available in all AWS regions?

A. AWS Marketplace services, including Usage Metering, are generally available in multiple AWS regions. Sellers can choose the regions where they want to make their products available.