Unlocking Financial Wins: The Forrester Report on AWS Marketplace’s Channel Partner Revolution

Unlocking Financial Wins: The Forrester Report on AWS Marketplace’s Channel Partner Revolution

The world of cloud computing creates substantial opportunities for channel partners in the AWS Partner Network and Marketplace. 

The world of cloud computing creates substantial opportunities for channel partners in the AWS Partner Network and Marketplace. 

A critical Forrester Consulting report, “The Partner Opportunity for AWS Marketplace SIs, GSIs, and Resellers,” highlights significant benefits for partners in this arena. 

This development is especially crucial for members of the AWS Partner Network, showcasing a spectrum of successful outcomes.

Channel Futures recently published their insights in October 2023 emphasizing these findings. The blog reflects on the transformative effects of the AWS Marketplace on channel partners, reinforcing the importance of the Forrester report’s insights. 

Report Overview

The Forrester report provides a detailed analysis of the benefits channel partners gain in the AWS Marketplace, revealing impressive statistics that are particularly significant for the AWS Partner Network:

  • Return on Investment (ROI): The report indicates a remarkable 234% ROI for partners involved in the AWS Marketplace, highlighting its profitability.
  • Speed in Deal Closure: A notable finding is the 50% reduction in deal closure times, streamlining processes and accelerating revenue generation.
  • Average Deal Size: There’s a substantial increase in deal size, especially for North American resellers, with deals being 4-5 times larger than average.

How Partners Are Benefiting Financially

The Forrester report sheds light on how partners in the AWS Partner Network are seeing financial gains through the AWS Marketplace. These gains come from diverse revenue streams:

  • Resale Private Offers: The report found that, on average, gross profits from new business via resale private offers amounted to $2.4 million in the first year. This significant figure underscores the lucrative nature of these deals.
  • Professional Services Private Offers: Additionally, profits from professional services private offers in new business reached approximately $797,000 in the first year, per Forrester’s findings.
  • Overall Influence on Professional Services: The AWS Marketplace also impacted the gross profits from professional services, totaling around $380,000 for the average partner.

These revenue streams are bolstered by the support of AWS Marketplace funding and incentives, providing a robust framework for practice growth and financial success. 

Forrester’s analysis highlights that these opportunities are revenue drivers and cost-offsetting mechanisms, enabling partners to expand and diversify their business ventures effectively.

However, it’s important to note that Forrester’s Total Economic Impact numbers do not guarantee earnings for every partner in the AWS Marketplace. 

The report uses a composite approach, representing what a typical partner at certain revenue thresholds could expect to earn. This nuanced understanding is crucial for partners in the AWS Partner Network as they strategize their involvement in the AWS Marketplace.

Channel Partner Perspectives and Testimonials

Insights from partners within the AWS Partner Network provide real-world examples of the success stories emerging from the AWS Marketplace:

Large-Scale Transactions

One North American reseller’s vice president shared their experience with significant deals, stating, “We have had several large-scale, seven-figure-plus transactions that would not have happened without AWS Marketplace.” This highlights the platform’s ability to facilitate significant transactions.

Impressive Growth

The cloud marketplace lead of a North American system integrator reported a remarkable growth rate, saying, “Our year-over-year growth is up over 1,000%, so it’s not going away. We want to make sure we’re hand-in-hand with AWS and along for the ride.”

Customer-Centric Benefits

Echoing the importance of customer satisfaction, an alliances director from another North American reseller noted, “Our customers value the benefits of procuring through AWS Marketplace, and we value our customers. … At the end of the day, it’s all about taking care of the customer.”

Securing Resale Business

A managing director from a Global System Integrator (GSI) emphasized the strategic advantage offered by the marketplace, remarking, “We’re able to protect our resale business by having the ability to execute [with] AWS Marketplace on transactions [coming up for renewal].”

These accounts demonstrate the multifaceted benefits that AWS Marketplace offers, from enabling substantial deals to prioritizing customer needs, all contributing to the growth and stability of businesses in the AWS Partner Network.

The Growing Importance of Cloud Marketplaces

Cloud marketplaces are revolutionizing the tech industry’s buying and selling landscape, particularly for software and services. This shift is especially significant for the AWS Partner Network:

  • Market Evolution: The AWS Marketplace exemplifies how these platforms change traditional digital sales methods, offering efficiency and new customer engagement opportunities.
  • Projected Growth: By 2025, cloud marketplaces are expected to create a $45 billion opportunity, as forecasted by Canalys, highlighting their increasing market significance.
  • Pioneers and Leaders: The AWS Marketplace, launched in 2012, set the stage for this transformative trend, influencing other significant players to adopt the marketplace model.

For AWS Partner Network members, this trend signifies the importance of embracing cloud marketplaces for transactions and as a means to foster customer relationships and innovate in cloud services.

Conclusion

As cloud marketplaces continue to grow, with a projected value of $45 billion by 2025, their role in the tech industry becomes increasingly critical. For members of the AWS Partner Network, adapting to and leveraging the AWS Marketplace is a pathway to immediate financial gains and a strategic move for sustained growth in the ever-evolving cloud computing sector.

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