Jay McBain’s Post

The launch of “Buy with AWS” adds another important route to market in the tech industry and will accelerate partners’ marketplace private offers strategies. Amazon Web Services (AWS) has already piloted this with over 50 partners globally, combining a mix of channel partners, distributors, and ISVs. Check the graphic below. Canalys provides some expert analysis from (my boss) Rachel Brindley and hyperscaler/GSI expert Peter Bryant into the launch of “Buy with AWS” and its implication for the hyperscaler’s marketplaces here: https://lnkd.in/e6c_ij5A Highlights: • More than 99% of AWS’ top 1000 customers already have at least one active marketplace subscription. These customers drive the majority of AWS' $100 billion+ in revenue (from a market sizing/scale perspective). This revenue continues to grow at ~20% each quarter, creating a critical route to market (much like Amazon is for consumer goods). • Canalys expects that by 2027, more than half of all marketplace procurement will be conducted via channel partners and this will accelerate from there. Over 70% of our industry flows indirectly and this plays into that customer procurement preference. • We have talked to several vendors now who have surpassed the $2 billion mark on AWS marketplace. Years ago, we predicted that AWS would be a Top 10 distributor (by now) and we are now calculating when they will be a Top 5 (soon). This story keeps building. When you add the hundreds of recent pricing announcements around the emerging Gen AI era, these complicated micro-consumption models will only be executed via ultra-large marketplaces.