How software companies can maximize the flywheel for growth
by Grace Velker, Head of US ISV Greenfield, AWS | 6 June 2025 | Thought Leadership
Overview
The challenge of achieving a strong growth trajectory has been a long and arduous one for software companies. Combined with rising interest rates, growth efficiency declined by more than 50 percent between 2021 and 2023 according to McKinsey and Company—and signals suggest this trend is continuing.
While it might seem like the odds are against software companies, there are proven steps to building growth momentum. The Amazon flywheel business model is a prime example—a virtuous cycle that puts customers (and their customers) at its core.
The flywheel is made up of interconnected initiatives that reinforce each other—including multi-layered support, expertise, and services. When software companies use Amazon Web Services (AWS), these tools and programs feed into one another and function to keep the flywheel spinning and powering ongoing growth. Whether the company is just developing its product or ready to go to IPO, the self-establishing loop helps them scale profitably while continuously improving customer experiences.
Spinning up win-win scenarios
Customer obsession is a guiding principle for the flywheel, and it’s been part of Amazon’s culture since day one. Every service and program begins by working backward from customers’ specific needs and these needs serve as the north star for decision-making throughout. By obsessing over the customer experience, AWS can keep innovating meaningfully while also spurring on mutual growth.
Customer-centric development extends beyond the software company itself too. It also includes drilling deep into metrics on end users’ needs to enrich the flywheel effect. AWS is always seeking new ways to add value to products and make users’ lives easier, such as helping them to save costs, boost efficiencies, and improve productivity with cutting-edge use of technologies like AI.
As the user experience keeps growing stronger, the software company also becomes more competitive and successful. At the same time, AWS continues to channel its own profits into innovations that increasingly benefit both software companies and their customers. In fact, Amazon is set to spend nearly a quarter of AWS revenue on AI investments in 2025 to keep pushing capabilities to the next level. With research and development always in motion, growth potential isn’t held back by what’s possible in the present.
The tools and expertise to grow at every turn
The benefits of the flywheel compound as software companies adopt more services and support from AWS. From a platform perspective, running on one of the most secure and cost-efficient clouds helps them stay protected from risks and turn savings into value added innovations. With the infrastructure to create faster DevOps cycles, they can also gain greater agility.
Beyond the platform, AWS offers strategic engagements spanning numerous lines of business. Aside from tapping into rich technical expertise, business support through these initiatives helps companies identify the right product market fit to hit the ground running. The diverse range of programs available provide a springboard for everything from expanding companies’ global footprint to accelerating account break-ins and engagement. Take the co-sell motion of AWS Marketplace, for example. Companies can expand their customer base by streamlining and simplifying software procurement.
When organizations are looking to improve market adoption, they can leverage the AWS Service Ready Program to effectively promote software products. With AWS Global Passport, they also have comprehensive support for identifying and launching in prime markets for expansion—from strategic planning to establishing technical readiness, creating a go-to-market strategy, and understanding local compliance requirements. As a result, software companies know how to speak their customers’ language and have greater exposure to new prospects, including through large-scale events like re:Invent and one-to-one introductions.
With you every step of the way
The flywheel doesn’t stop as software companies reach the end of their current cycle with a private equity firm. They can call on enterprise strategists through AWS to increase their valuation and become more favorable to the next private equity firm, including by uncovering cost optimizations and rethinking resource allocation. As ex-CPOs, CTOs, and CEOs—these enterprise strategists have been in software companies’ shoes and know exactly what it takes to help them scale profitably.
No matter where they are on their journey, software companies can gain the momentum to rise above growth challenges. By joining the flywheel motion, they have access to the right technology, business insights, and hands-on expertise at every stage.
New to AWS or the flywheel model? Reach out to learn more about the breadth and depth of support available to realize your ambitions.
About the author
Grace Velker, Head of US ISV Greenfield, AWS
Grace focuses on building high-performing organizations and driving strategic growth of the US ISV Greenfield business segment. Her purpose-driven leadership fosters a culture of identifying market opportunities and delivering impactful results for ISVs. Drawing on her experience and bilingual background, Grace champions diversity and inclusion while bringing an agile, growth-oriented mindset from her involvement in the startup ecosystem. Based in San Francisco, she enjoys connecting with others and embracing new experiences, both personally and professionally.
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