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5 Ways To Drive AWS Partner Profits, 60 Percent Margins

Mark Haranas

‘One dollar of AWS can lead to $6.40 for the partner—that’s a lot of money if you think about how much money is moving into the cloud,’ AWS’ Julia Chen tells CRN.

Amazon Web Services channel leaders want to take partner profitability to new heights, explaining to CRN how partners can make $6.40 on every dollar of AWS sold.

“One dollar of AWS can lead to $6.40 for the partner—that’s a lot of money if you think about how much money is moving into the cloud,” said Julia Chen, vice president of AWS’ Partner Core, in an interview with CRN. “This is quite a substantive multiplier.”

The Seattle-based $82 billion cloud giant is striving to drive partner profitability by opening up the floodgates to incentive programs for channel partners of all shapes and sizes, while also matching partners together within the AWS ecosystem to drive the “nirvana” business outcomes customers are seeking, she said.

[Related: AWS Pouring Billions Into European Expansion, New Cloud Regions]

Solution provider powerhouse Presidio is reaping the benefits of some newly available incentive programs and trainings inside the AWS Partner Network, which has been revamped under the new leadership of AWS’ Worldwide Channel Chief Ruba Borno and AWS CEO Adam Selipsky.

“They’re rolling out programs that are extremely rich in margin and helpful for the partner,” said Chris Cagnazzi, senior vice president and general manager for Presidio’s Cloud Solutions Group. “They understand there’s a cost to onboarding clients and the cloud [transformation] work that’s needed. AWS is backing us up with lucrative programs that are meaningful and working on initiatives that are focused on partner profitability.”

AWS Profitability Report At re:Invent 2022

At AWS re:Invent 2022 in Las Vegas today, Amazon’s cloud computing unit unveiled a new survey in conjunction with Canalys that reviewed dozens of AWS partners to understand profit margins and return on investment (ROIs).

The study was aimed at helping AWS’ 100,000-strong partner ecosystem discover how to make more profits and margins working with AWS.

Sachin Vora, global leader of the AWS Partner Network (APN) Programs, told CRN the survey showed where some of the greatest profit opportunities are for channel partners.

“We don’t just have foundational workload-based opportunity for our partners, but partners can now start stacking up different layers of value-unlocking with the customer,” said Vora. “AWS is the best place for partners with our innovation. We are seeing that flywheel effect now kicking-in.”

In an interview with CRN, AWS’ global partner executives Vora and Chen explain how partners can reap the highest ROI, margins and profits with AWS.

 

 
Mark Haranas

Mark Haranas is an assistant news editor and longtime journalist now covering cloud, multicloud, software, SaaS and channel partners at CRN. He speaks with world-renown CEOs and IT experts as well as covering breaking news and live events while also managing several CRN reporters. He can be reached at mharanas@thechannelcompany.com.

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