A Total Economic Impact Partner Opportunity Analysis for Channel Partners Selling in AWS Marketplace
By Kathleen Hillenbrand, Principal, Channel Programs – AWS
By Katherine McCaslin, Sr. Program Manager, Channel Communications – AWS
By Steven Swanson, Sr. Channel Development Manager – AWS
As customer demand for procuring professional services and third-party software from trusted Channel Partners in AWS Marketplace grows, more and more Channel Partners are evaluating the business opportunity available in AWS Marketplace.
In September 2023, Amazon Web Services (AWS) commissioned Forrester Consulting to conduct a Total Economic Impact (TEI) study to examine the potential business opportunity and return on investment (ROI) that Channel Partners can realize by building and scaling an AWS Marketplace practice.
In this post, we provide an overview of the study framework and highlight key findings, including potential revenue opportunities, benefits, costs, and best practices associated with reselling third-party software, data, and offering professional services in AWS Marketplace.
A Global Opportunity
To collect data for this study, Forrester interviewed 27 individuals from 14 existing AWS Marketplace Channel Partners about their experience working with AWS Marketplace, and the impact that selling through AWS Marketplace has had on their business and their customer’s experience. The results were combined to form a single composite organization.
These partners include global system integrators (GSIs), system integrators (SIs), resellers, managed service providers (MSPs), professional services partners, and distributors. They are largely global businesses headquartered in North America, Europe, and Asia, and their annual revenues range from less than $100 million to more than $25 billion.
Meeting Customer Demand
The Forrester Consulting TEI study provides prospective partners with a comprehensive view into what selling in AWS Marketplace brings to both the Channel Partner and their customers. As summarized by a current AWS Marketplace Channel Partner: “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.”
Channel Partners interviewed by Forrester reported that AWS Marketplace customers enjoy a quick and agile procurement process, cost savings, and business benefits, such as AWS-spend commitment retirement and consolidated billing.
Channel Partners Benefit from Selling in AWS Marketplace
Forrester Consulting found the following key benefits reported by Channel Partners selling in AWS Marketplace:
- Richer deal sizes: Sellers reported a 4-5x increase in deal size when reselling third-party software through Channel Partner Private Offers (CPPO).
- Increased net new business: Interviewed sellers saw private offers growing 133%+ year over year, with 40% of these private offers coming from net-new business.
- Accelerated sales cycle: Sellers reported up to 50% faster time to deal closure when selling in AWS Marketplace.
While Forrester found that AWS Marketplace had a strong impact on top line revenue of a Channel Partner’s business, the positive impact carried through to the bottom line. Partners saw a 234% ROI when selling in AWS Marketplace, which was driven by strong margins on professional services (37%) and software resale (13%).
In addition to the quantified benefits that Forrester outlines in the study, AWS Partners reported additional benefits such as reduced costs through invoicing efficiencies, ability to create new partnerships with ISVs, and an enhanced customer experience.
Learn from Experienced Channel Partners
AWS Marketplace Channel Partners interviewed by Forrester Consulting share their advice and best practice recommendations in the study. These include:
- Educate customers, team members, and independent software vendor (ISV) partners by using the AWS Marketplace Training Academy.
- Involve stakeholders such as marketing, finance, and operations during AWS Marketplace adoption.
- Stay connected and up to date on AWS Marketplace by subscribing to newsletters.
Read the Forrester TEI Study for More Insight
Download the Forrester Consulting TEI study for detailed insights into the revenue opportunities, benefits, and best practices associated with reselling third-party software, data, and offering professional services in AWS Marketplace.