AWS Boosts MSP Partner Incentives: ‘It’s On Steroids Now,’ AWS Programs Leader Says

AWS is launching new MSP incentives in 2026 to boost profitability for partners that provide services like AI and cybersecurity, as well as government deals.

Amazon Web Services is giving MSPs more margins via new financial incentives to reward partners that drive key services like AI and cybersecurity, as well as government deals and cloud adoption.

“We’ve discovered that our managed service-validated partners actually drive 91 percent higher customer revenue, eight times higher retention rates and three times higher consumption than traditional resellers,” AWS’ Julia Chen (pictured), vice president of Specialists and Partner Core, told CRN.

For that reason, AWS is launching new incentives on Jan. 1, 2026, aimed at fueling MSP partner margins.

“We’re introducing these incentives that are actually monetary incentives now—it’s not just marketing funds, but we’re actually going to pay incentives,” said Chen.

“We’re rewarding the partners who drive cloud adoption more. We’re also rewarding partners that do managed services and are using more advanced AWS services, such as security services and GenAI services,” she said.

AWS’ Three New MSP Incentives

AWS has three new incentives including its MSP Incentive for Strategic Services that rewards partners that help customers innovate and enhance their cloud capabilities through specific AWS services such as generative AI, cybersecurity and modernization.

The company’s new MSP Incentive for Customer Management recognizes MSPs that help customers adopt and use cloud solutions.

The third new incentive is AWS’ MSP Government Practice Benefit, which financially supports partners that serve government customers through their digital transformation journey.

AWS’ previous MSP program was more of a specialization with some marketing funds available.

“We’ve totally amped it up now, so it’s on steroids now,” Chen said.

“Managed services is so much more valuable to a customer than someone coming in and just reselling. It’s more value-add because a managed service agreement is effectively delivering an outcome on a service-level agreement,” Chen said, explaining AWS’ reason for implementing the new MSPs incentives. “Customers are more and more buying managed services.”

A ‘Win-Win-Win’ For AWS And Partners

Joshua Corb, founder and CEO of Basis, an AWS Advanced Services Partner, said the program updates add to AWS’ already stellar channel prowess in 2025.

“Something we can always sell when we’re looking for new businesses is, ‘Hey, we'll bring in AWS as a partner,’” said Corb. “They incentivize us, help our clients and they’ll also jump into our phone calls and help ensure that we’re doing a good job and the customer is getting what’s needed.”

Chen sees the MSP new incentives as a “win-win-win” for the partners and AWS.

“Our updated MSP program has real monetary incentives now. So I’m really excited about it because that is where our customers are going. That’s where the value is delivered,” Chen said. “MPSs will earn a higher profit from the customer. And then for us, it drives a lot more cross-sell, upsell and customer value.”

AWS re:Invent 2025 is taking place this week in Las Vegas.