Business Outcome Solutions Reap 60 Percent Margins; $6.40 Multiplier

Partners who sell business outcome solutions can reap 60 percent margins on their offerings.

“For example, predictive maintenance in a factory or real time in-store retail analytics—when you’re selling a business outcome solution, you can make upwards of 60 percent margin on what you’re selling,” said Chen.

AWS’ study with Canalys found that partners can reach a $6.40 multiplier per one dollar if they can offer services and support across the entire cloud lifecycle.

Breaking down the $6.40 multiplier figure, Chen said a partner who offers a wide breadth of services can make around one dollar on advising; $1.20 on designing; $1.60 on building; 30 cents on procuring; $1.10 on adoption; and $1.10 on managing the AWS service for the customer.

“I think nirvana is delivering that business outcome solution,” said Chen.

“Some partners are not geared to do it. They would have to hire a whole different skill set than they have,” she said. “One thing that I tell partners is if you don’t have that, then partner with another partner. This is where a system integrator (SI) can partner with an independent software vendor (ISV) and together, they can sell a business outcome solution.”