Managed Services Partners Make 30 Percent To 40 Percent Gross Margins

Building an AWS managed services practice and investing in MSP cloud skills is critical to increasing profitability.

“If you’re just reselling AWS products or offerings, you’re making high single digits, maybe low double digits, in terms of margin. If you’re selling managed services, you can make 30 percent to 40 percent gross margin,” said Chen.

She said partners are realizing that the best way to really “unlock growth and profitability” is to diversify into being a managed service provider.

In order to become a highly profitably partner, solution providers must invest in building out managed services capabilities for AWS.

“If you invest in learning more of the AWS portfolio, and you invest in building capabilities like managed services—you will make more money,” Chen said.