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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchPega’s 2025 results show accelerating cloud demand alongside its AI strategy and five-year AWS collaboration. Pega reported $1.557 billion in annual contract value (ACV) at September 30, 2025, up 14% year over year, then reported $1.608 billion at December 31, 2025, up 17%. The often-quoted “$1.56 billion total contract value” is therefore imprecise: $1.56 billion approximates Pega’s constant-currency year-end ACV, while ACV—not total contract value—is the company’s reported metric.
The number behind the $1.56 billion headline
Annual contract value is the annualized value of active contracts measured at a particular date. It is different from revenue recognized during a quarter and from the full value of a multiyear contract. “Total contract value” can describe the entire contract term, but Pega’s investor materials use ACV.
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| Metric | Q3 2025 | Full-year 2025 |
|---|---|---|
| Reported ACV | $1.557 billion at September 30, 2025 | $1.608 billion at December 31, 2025 |
| Year-over-year ACV growth | 14% | 17% |
| Constant-currency ACV | $1.552 billion | $1.562 billion |
| Pega Cloud ACV growth | 27% | 33% |
| Revenue | $381.35 million, up 17% year over year | Not stated in the cited release |
| 2026 ACV-growth guidance | — | 15% |
Sources: Pega’s Q3 2025 release and Pega’s FY 2025 results filed with the SEC.
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ACV indicates the scale of contracted recurring business, whereas revenue follows accounting recognition rules. Neither figure alone proves how much business came from AWS. Pega disclosed no AWS-attributed ACV, Marketplace customer count, or return on investment.
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Why cloud and AI are central to the growth story
Pega’s cloud business grew faster than overall ACV, suggesting continued movement toward managed deployments. Its AI positioning, often described as “Predictable AI,” focuses on using AI to discover processes, design applications and assist modernization while keeping workflow execution governed and deterministic.
Blueprint’s role
Pega Blueprint is the design-time layer. Pega says it can help document existing processes, extract knowledge from legacy applications, standardize workflows and create initial designs for Pega applications. It is intended to connect business-process discovery with implementation and can support movement from on-premises systems to Pega Cloud.
Those benefits remain a vendor proposition rather than independently measured productivity results. CRN reported executive commentary that Blueprint could reduce the need for six to 10 people during discovery; that statement should be treated as attributed guidance, not a benchmark. See CRN’s coverage.
What the five-year AWS agreement actually connects
Announced on July 14, 2025, the Strategic Collaboration Agreement combines Pega’s workflow platform with AWS modernization and AI services. It is a product, deployment and go-to-market arrangement—not a disclosed dollar-value contract.
Pega Blueprint: discover and design
Blueprint helps teams understand application portfolios and turn business requirements, legacy logic and process knowledge into a target workflow design. Its value depends on the quality of source documentation, data definitions and stakeholder validation.
Amazon Bedrock: model and AI infrastructure
Amazon Bedrock provides managed access to foundation models and generative-AI infrastructure. Under the agreement, Pega identified Bedrock as the primary generative-AI foundation for Blueprint and Pega Platform. Bedrock is not a workflow-modernization product by itself; customers still need Pega configuration, integrations, security controls, testing and implementation expertise.
AWS Transform: modernization assistance
AWS Transform is positioned as an agentic-AI capability for automating parts of cloud and legacy modernization. Connecting it with Blueprint is intended to make application modernization and workflow redesign more integrated. It does not guarantee automatic migration of every legacy system. Results vary with application complexity, undocumented dependencies, regulatory controls, data architecture and testing requirements.
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Pega Platform, Pega Cloud and partners: execution
Pega Platform executes the resulting workflows and automation, while Pega Cloud and AWS provide the operating environment. Systems integrators may supply discovery, migration, integration and change-management services. Pega’s 2025 Form 10-K describes hyperscalers and implementation partners as important parts of its ecosystem: 2025 Form 10-K.
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Why AWS Marketplace matters to buyers
Pega said AWS Marketplace would be its preferred transaction mechanism for Pega-as-a-Service. For an existing AWS customer, that can consolidate procurement, legal review and vendor management. Depending on the customer’s AWS agreement and eligibility, Marketplace spending may also count toward commercial commitments.
Marketplace does not make the project all-inclusive. Buyers still need to price Pega subscriptions, AWS infrastructure and model usage, migration, integrations, implementation partners, training, testing, support and compliance work. Availability and terms vary by geography, account status and private-offer structure. The agreement is described in Pega’s announcement.
Did AWS cause Pega’s 2025 growth?
The evidence supports a strategic connection, not a quantified causal claim.
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Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →- Verified: the AWS agreement was signed in July 2025; ACV rose 14% year over year in the third quarter and reached $1.608 billion at year-end; Pega Cloud grew faster than total ACV.
- Reasonable interpretation: AWS can improve Pega’s access to AWS-oriented enterprises, simplify procurement and give partners a clearer joint modernization proposition.
- Not publicly established: the ACV generated by AWS, Marketplace-sourced customer numbers, production deployments using Bedrock or Transform, and customer-level financial returns.
Other factors—including Pega’s existing sales channels, product demand and broader cloud adoption—also contribute to ACV. The public materials do not isolate their effects.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Where the proposition can fit
- Enterprises already committed to AWS procurement and operating practices.
- Organizations with complex, rules-heavy case management, decisioning or customer-service workflows.
- Teams seeking a governed design environment shared by business and IT.
- Companies able to fund migration, integration, implementation and change management.
- Regulated organizations that need auditable workflow controls rather than an unconstrained chatbot.
Where caution is warranted
- Simple departmental processes that lighter automation can handle.
- Modernization programs whose primary challenge is data engineering rather than workflow redesign.
- Organizations without Pega skills or an experienced implementation partner.
- Poorly documented systems with hidden batch jobs, manual workarounds or conflicting data definitions.
- Buyers seeking a low-cost, self-service tool or a short implementation cycle.
Risks that remain after the announcement
Bad processes can be automated faster
AI-assisted discovery may reproduce contradictory or inefficient legacy practices. Process owners should decide what to retire, standardize or redesign before automating it.
Human validation is mandatory
AI-generated designs and migration recommendations require business approval, privacy and security review, model-output validation, regression and performance testing, auditability checks and industry-specific compliance review.
Cloud migration does not erase technical debt
Moving workloads to AWS or Pega Cloud can change infrastructure operations, but it does not automatically simplify business logic, data models, integrations or ownership.
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Buyers should verify supported Bedrock models and regions, data-retention and training policies, prompt and output logging, model-version changes, latency, throughput, inference costs, fallback behavior and portability if a provider or model changes. A complete cost model should include Pega, AWS, partner services, migration, training and ongoing support.
Questions for a CIO or procurement team
- Which applications and business processes are in scope, and which should be retired or redesigned?
- What does Blueprint automate, and what work remains for consultants and internal teams?
- Which Bedrock models, regions and data-handling controls apply to the deployment?
- How are prompts, outputs, logs, human approvals and audit records governed?
- What is the full three-year cost, including AWS usage, implementation, integration, testing and support?
- How will the program measure modernization speed, maintenance burden, process consistency and technical-debt reduction?
- What happens if the organization changes cloud providers, leaves Pega or needs to replace a model?
- Which implementation partners have relevant industry and legacy-platform experience?
Bottom line on Pega and AWS
Pega’s financial results show real momentum: reported ACV reached $1.608 billion at year-end 2025, constant-currency ACV was $1.562 billion, and Pega Cloud grew 33% for the year. The AWS agreement strengthens the company’s modernization proposition by linking Blueprint’s workflow design, AWS Transform’s modernization assistance, Bedrock’s model infrastructure and Pega’s execution platform.
It is best understood as an enabler of enterprise growth and a potentially useful modernization architecture—not proof that AWS independently generated the ACV increase. The business case still depends on process quality, governance, implementation capability, integration effort and the total cost of operating the resulting system.
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