--- title: "AWS Managed Entitlements for Foundation Models" url: https://www.suger.io/resources/blog/managed-entitlements-for-foundation-models/ canonical: https://www.suger.io/resources/blog/managed-entitlements-for-foundation-models/ type: Blog description: "How AWS managed entitlements distribute a foundation-model purchase across every account in an AWS Organization, and the prerequisites teams miss." --- # AWS Managed Entitlements for Foundation Models > Canonical HTML version: https://www.suger.io/resources/blog/managed-entitlements-for-foundation-models/ 1. [Home](/) 2. / 3. [Resources](/resources/) 4. / 5. [Blog](/resources/blog/) 6. / 7. AWS Managed Entitlements for Foundation Models # AWS Managed Entitlements for Foundation Models A foundation model bought once by the payer account is useless to the twelve teams that need it. Managed entitlements are how the purchase reaches them. [![Stacy Wu](/authors/stacy-wu.jpg)](/resources/blog/author/stacy-wu/) [Stacy Wu](/resources/blog/author/stacy-wu/) Aug 27, 2026 ![AWS Managed Entitlements for Foundation Models](/images/blog/managed-entitlements-for-foundation-models/hero.png) Explore AI Summary [![](/logos/company/openai.svg)](https://chat.openai.com/?q=Read%20and%20summarize%20https%3A%2F%2Fwww.suger.io%2Fresources%2Fblog%2Fmanaged-entitlements-for-foundation-models%2F%2C%20then%20cite%20the%20source.%20Focus%20on%20what%20it%20says%20about%20AWS%2C%20Cloud%20GTM. "Summarize with ChatGPT")[![](/logos/company/anthropic.svg) ](https://claude.ai/new?q=Read%20and%20summarize%20https%3A%2F%2Fwww.suger.io%2Fresources%2Fblog%2Fmanaged-entitlements-for-foundation-models%2F%2C%20then%20cite%20the%20source.%20Focus%20on%20what%20it%20says%20about%20AWS%2C%20Cloud%20GTM. "Summarize with Claude")[![](/logos/company/gemini.svg)](https://www.google.com/search?udm=50&aep=11&q=Read%20and%20summarize%20https%3A%2F%2Fwww.suger.io%2Fresources%2Fblog%2Fmanaged-entitlements-for-foundation-models%2F%2C%20then%20cite%20the%20source.%20Focus%20on%20what%20it%20says%20about%20AWS%2C%20Cloud%20GTM. "Summarize with Gemini")[](https://www.perplexity.ai/search/new?q=Read%20and%20summarize%20https%3A%2F%2Fwww.suger.io%2Fresources%2Fblog%2Fmanaged-entitlements-for-foundation-models%2F%2C%20then%20cite%20the%20source.%20Focus%20on%20what%20it%20says%20about%20AWS%2C%20Cloud%20GTM. "Summarize with Perplexity") Table of Contents - [What managed entitlements are](#what-managed-entitlements-are) - [Why foundation model purchases hit this first](#why-foundation-model-purchases-hit-this-first) - [The sequence: subscribe, enable sharing, grant, accept](#the-sequence-subscribe-enable-sharing-grant-accept) - [The prerequisites that catch teams out](#the-prerequisites-that-catch-teams-out) - [What this means if you are the seller](#what-this-means-if-you-are-the-seller) - [How Suger helps](#how-suger-helps) - [Frequently asked questions](#frequently-asked-questions) - [Takeaways](#takeaways) _AWS managed entitlements are the mechanism that lets one AWS account buy a product from AWS Marketplace and distribute the right to use it — the entitlement — to other accounts in the same AWS Organization, through AWS License Manager._ * * * An enterprise buys a foundation model through AWS Marketplace on a negotiated private offer. The purchase settles into the management account. Then the data science team, which works in an entirely different account, tries to invoke the model and gets charged at public rates — or gets nothing at all. This is not a billing bug. It is the default. A marketplace subscription belongs to the account that made it, and the contracted pricing applies to that account until somebody deliberately distributes it. Managed entitlements are that deliberate step, and they are the difference between a negotiated model deal that works and one that quietly bills at list price across a dozen teams. * * * ## **What managed entitlements are** **A managed entitlement is a right of use, distributed from a purchased license to a specific AWS account.** AWS License Manager is where that distribution happens. AWS’s own definition is worth reading precisely: granted licenses are licenses for products an organization purchased from AWS Marketplace, AWS Data Exchange, or directly from a seller who integrated with managed entitlements, and license administrators use License Manager “to govern the use of these licenses and to distribute rights of use, known as entitlements, to specific AWS accounts.” The important word is _specific_. Entitlements are distributed deliberately, per account. Nothing propagates automatically because two accounts happen to share a payer. ## **Why foundation model purchases hit this first** Model consumption is distributed by nature, which is what makes this a foundation-model problem before it is anyone else’s. A database license tends to be used by the team that bought it. A model gets called by application teams, data science, an internal platform, and three experiments nobody told procurement about — each from its own account. So the gap between “we negotiated a rate” and “we are paying that rate” is wider here, and it shows up as a bill rather than an outage. Machine learning products are explicitly among the subscription types AWS supports sharing across an organization, alongside AMI, container, data products and Oracle Database@AWS. ## **The sequence: subscribe, enable sharing, grant, accept** Four steps, in order, and the second one is the one teams skip. 1. **Subscribe** in the account that holds the agreement — typically the management account, on whatever contracted pricing was negotiated. 2. **Enable subscription sharing.** AWS is explicit that “before you can distribute licenses from AWS Marketplace, you must enable subscription sharing,” which means setting up license support in AWS Marketplace and then sharing from within License Manager. Skipping this makes the grant step simply unavailable, which reads as a permissions problem and is not one. 3. **Create grants** in License Manager, distributing the entitlement to the member accounts that need it. 4. **Accept and activate.** After an administrator distributes an entitlement, the recipient has to accept and activate the granted license before the subscription becomes available to that account. Where the organization has all features enabled, this can be automatic; under consolidated billing only, it is manual per account. Only after step four does contracted pricing actually apply in the member account. ## **The prerequisites that catch teams out** Three, and they are all environmental rather than conceptual. The organization needs **all features enabled** — consolidated-billing-only organizations can still receive grants, but every account has to accept them by hand, which does not scale past a handful. The work has to be done from the **management account or a delegated administrator**, which matters when the management account is locked down and the person doing the setup is not in it. And the License Manager and Marketplace **service-linked roles** have to exist before any of it works. There is also a regional constraint worth knowing before you schedule the work: the Bedrock entitlement setup is done in **us-east-1**, regardless of where the models are ultimately invoked. ## **What this means if you are the seller** If you sell models or ML products through AWS Marketplace, this is a deal-desk concern, not just a buyer concern. The enterprise negotiating with you almost certainly has a multi-account structure, and if nobody raises entitlement distribution during the deal, the first month’s bill becomes a support conversation about why the negotiated rate did not apply. The fix is a sentence in the deal: confirm who the license administrator is and whether subscription sharing is already enabled. That is a five-minute question before the offer, and a painful reconciliation after it. The broader mechanics of what a buyer receives are covered in [offer vs entitlement](/resources/blog/offer-vs-entitlement/) and [marketplace entitlement management](/resources/blog/marketplace-entitlement-management/). ## **How Suger helps** Suger’s console walks the setup — delegated administrator, service-linked roles, grant creation and activation — so the sequence above is followed in order rather than discovered out of order. The entitlement state is then visible alongside the agreement it came from, which is what makes “did this actually reach the member accounts” answerable without opening License Manager. See [Suger’s docs on Bedrock managed entitlements](https://doc.suger.io/aws-marketplace/bedrock-managed-entitlements) for the current steps. * * * ## **Frequently asked questions** **What are AWS managed entitlements?** Rights of use distributed from a purchased AWS Marketplace license to specific AWS accounts, administered through AWS License Manager. They let one account buy a product and give other accounts in the organization the right to use it. **Why doesn’t my negotiated model price apply in member accounts?** Because a subscription belongs to the account that made it. Contracted pricing reaches other accounts only after an administrator distributes an entitlement and the recipient accepts and activates it. **What has to be enabled before I can distribute a license?** Subscription sharing. AWS requires you to set up license support in AWS Marketplace before licenses can be distributed from License Manager — without it the grant option is unavailable. **Does the recipient account have to do anything?** Yes. The recipient accepts and activates the granted license. With all organization features enabled this can be automatic; under consolidated billing only, each account accepts manually. **Which region do I do this in for Bedrock?** us-east-1. The entitlement setup is performed there regardless of the regions where the models are later invoked. * * * ## **Takeaways** - A marketplace subscription belongs to the account that bought it. Contracted pricing does not reach sibling accounts on its own. - Managed entitlements distribute rights of use to specific accounts through AWS License Manager. - The order matters: subscribe, enable subscription sharing, create grants, then accept and activate. The sharing step is the one most often skipped. - Foundation model purchases hit this first because consumption is spread across many accounts by design. - Sellers should confirm the license administrator and sharing status during the deal, not after the first invoice. * * * Keep agreements and entitlements in one view: see [Suger’s agreements](/platform/agreements/) and [reporting](/platform/reporting/), or [book a demo](/schedule-demo/). ## Sources Primary sources for the platform rules cited above. Last verified August 27, 2026. Cloud providers change fees, eligibility, and program terms without notice — check the source before relying on a figure. - [AWS License Manager: Granted licenses](https://docs.aws.amazon.com/license-manager/latest/userguide/granted-licenses.html) — Defines managed entitlements and the distribute → accept → activate sequence quoted in this post. - [AWS Marketplace: Sharing product subscriptions](https://docs.aws.amazon.com/marketplace/latest/buyerguide/organizations-sharing.html) — The product categories whose subscriptions can be shared across an organization, and the requirement to set up license support first. - [Suger docs: Bedrock managed entitlements](https://doc.suger.io/aws-marketplace/bedrock-managed-entitlements) — The Suger-side setup steps and the us-east-1 constraint described here. ### Stay Updated Get the latest Cloud GTM insights, product updates, and marketplace strategies delivered to your inbox.