A - SUSE manages update repositories inside the AWS environment for all SLES AMIs.  These cloud on-demand images do not use SUSEConnect. Registration with the update services occurs when the instance is started.   Upon boot-up you should be able to run "zypper update" and update the running image.  

Problems occur if the instance was started in a locked down VPC or a networking environment that was not able to access the update services for registration.  If the automatic registration is not working after startup it is indicated by "zypper lr" returning an empty repository list.  Information on how to enable the network configuration can be found here:  


Once the network configuration is enabled registration can be done via the following command:  registercloudguest --force-new

If this does not address the issue the SUSE team will need the contents of the following file to research further: