The Partner Opportunity for AWS Marketplace SIs, GSIs, and Resellers

In September 2023, Amazon Web Services (AWS) commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study to examine the potential opportunity and return on investment channel partners can realize by building and scaling an AWS Marketplace practice. Here is an executive summary of the report.

The executive summary analyzes the financial and operational impact of partnering with AWS Marketplace, based on a composite organization. This global business, headquartered in North America, has a Year 1 revenue of $2.5 billion, 25% of which comes from software resale. As an AWS Marketplace channel partner, it resells software and offers services to diverse customers through private offers. The findings underscore the financial viability and multiple benefits of such a partnership, adding context and relevance to the revenue streams and investments outlined in the report.

Revenue Streams:

• Resale Private Offers: Gross profits of $2.4 million are achieved by reselling software through AWS Marketplace's Channel Partner Private Offers program. This accounts for 68% of total profits over a three-year period.

• Professional Services Private Offers: Generates $797,000 in gross profits by offering tailored services through AWS Marketplace. This contributes to 22% of total profits over three years.

• Influenced Professional Services: An additional $380,000 in profits come from customers who buy follow-on services, either through AWS Marketplace or other channels. This comprises 10% of the total profits over three years.

Key Benefits:

• Faster sales cycles, with deals closing 50% quicker than traditional channels.

• Enhanced customer experience and value through streamlined procurement.

• Engagement opportunities with AWS, such as the Partner Advisory Council.

• Support from AWS for operational success.

• Access to funding and incentives.

• Security and timeliness in payments.

Investments:

• Partnership Management: $285,000 invested, accounting for 26% of operational expenses over three years.

• Marketplace Operations: $216,000 invested, making up 20% of expenses.

• Sales Training and Enablement: $190,300 investment, comprising 18% of expenses.

• General and Administrative: $393,000 invested, accounting for 36% of total operational expenses.

Financial Outcome:

The composite organization realizes a Net Present Value (NPV) of $2.54 million and an ROI of 234% over three years, against investments and overheads of $1.08 million.

Here is the link to the original report.