Technology

Unlocking Growth with Co-Selling on AWS Marketplace: A Practical Guide for ISVs

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By John Wick

For Independent Software Vendors (ISVs), AWS Marketplace is more than just a sales channel—it’s a transformative platform with the potential to significantly boost your business. By leveraging its reach and co-selling opportunities, ISVs can connect with new customers, streamline sales processes, and drive substantial revenue growth.

This guide explores the advantages of co-selling on AWS Marketplace, details the various partner programs available, and explains how you can optimize your co-selling efforts to make the most of AWS Marketplace.

Introduction to Cloud Marketplaces

A cloud marketplace is an online platform where customers can search, discover, and purchase cloud computing services and products. These marketplaces create an ecosystem where software vendors can build, run, and sell their solutions, capitalizing on the booming cloud computing market.

Among the major players—AWS Marketplace, Microsoft Commercial Marketplace (including Azure & AppSource), and Google Cloud Marketplace—AWS Marketplace stands out. Initially seen as supplementary sales channels, these marketplaces have become vital revenue centers, driven by the rapid growth of cloud computing, substantial enterprise budgets, and the shift towards e-commerce convenience.

The Cloud Marketplace Potential

The cloud marketplace is experiencing impressive growth, with several key indicators:

  • Exponential Growth: Projected to exceed USD 150 billion by 2027.
  • Market Expansion: Expected to reach USD 1.44 trillion by 2029.
  • Pre-Committed Budgets: Hyperscaler commitments have surged to $348 billion.
  • Growing Marketplace Sales: Forecasted to surpass $45 billion by 2025, with a CAGR of 84%.
  • Customer Preferences: 73% of B2B buyers prefer e-commerce, making cloud marketplaces crucial.
  • Growing Budget Allocations: 79% of CXOs prioritize cloud infrastructure spending.

These figures highlight the immense opportunity for ISVs within the hyperscaler ecosystem.

AWS Marketplace: A Closer Look

AWS Marketplace is a leader in the cloud marketplace space, capturing over 30% of the market. With more than 2.5 million active subscriptions and a $157 billion commitment to cloud consumption, AWS offers several benefits for ISVs:

  • Access to New Customers: Reach a global audience.
  • Increased Customer Trust: Leverage AWS’s credibility.
  • Utilization of Pre-Committed Budgets: Use AWS’s Enterprise Discount Program (EDP) for purchases.
  • Streamlined Sales Processes: Simplify sales and reduce operational burdens.
  • AWS-Led Programs: Engage in co-selling and other AWS programs for joint marketing and selling.

Co-selling with AWS Marketplace

The recent marketplace trends are always changing, and networking becomes an important part when it comes to tapping into the right sales and locking in the ultimate leads. AWS marketplace runs the APN Customer Engagements (ACE) program, enabling ISVs to collaborate and co-sell with AWS, drive successful engagements, and grow their business. ISVs get to manage joint opportunities with AWS, resulting in higher customer engagement. There’s more to the list, and here’s how AWS makes it all look a lot simpler:

  • Continue to create and receive co-selling opportunities without infrastructural changes – Manage both inbound and outbound opportunities without leaving the familiar system of record. Invariably, ISVs no longer have to toggle between different platforms and can easily share and accept referrals for co-selling from the existing system of record.
  • Let everyone in the team be on the same page – Through co-selling on AWS marketplace, all stakeholders get real-time visibility into the status of any deal and monitor whether or not the deals are moving along if they have been accepted or if there are any challenges.  
  • No upskilling or additional hiring is required – ISV teams no longer have to invest additional resources, which includes upskilling existing teams, adding more people to the team, or building an in-house technology solution.
  • Close the loop faster with automation at scale – Automation of the entire workflow, right from creating outbound co-selling opportunities or accepting inbound referrals to closing the loop after offer acceptance, makes the process fast and agile. 

Succeed in Co-Selling on AWS Marketplace with Partner Programs

AWS marketplace has created several partner programs, offering a transformational experience for all AWS partners. These programs are focused on creating diverse opportunities and incentives to help ISVs build, market, and sell their offerings in the AWS marketplace.

  1. APN Customer Engagements Program (AWS ACE)

The APN Customer Engagements Program or the ACE Program empowers ISVs to securely collaborate and co-sell directly with AWS (via field sellers), fostering greater customer engagement and enhanced sales. Essentially, it provides ISVs and AWS with a common platform to share joint leads and opportunities to win customers together.

  1. AWS ISV Accelerate

The AWS ISV Accelerate program does help ISVs gain access to essential co-selling resources and support from AWS field sellers, servicing millions of customers globally. The program facilitates mutual commitment from ISVs and AWS account managers, leading to increased commitment from AWS Account Managers, enhanced visibility through AWS sales team initiatives, exclusive access to webinars, reduced listing fees on the AWS marketplace, and prioritized access to resources and support.

  1. AWS Channel Partner Private Offers (CPPO)

ISVs can leverage the Channel Partner Private Offer (CPPO) to authorize consulting partners or channel partners, receive wholesale pricing for the software solution, and offer it to their end customers integrated into a bundled offer. This enables channel partners to customize offer listing as required – depending on the pricing, terms, etc. At a macro level, CPPO can be understood as a reseller relationship for ISVs to widen their scope and reach.

  1. AWS Service Delivery

The AWS Service Delivery Program is part of the AWS Specialization Program designed to validate AWS Partners with proven success in delivering certain AWS services to customers. AWS Service Delivery Partners are specialized to resolve unique use cases – from helping customers run serverless code with AWS Lambda to deploying managed, secure, reliable, and high-performing Windows-based solutions on Amazon EC2 Windows.

  1. AWS Solution Provider Private Offers (SPPO)

The AWS Solution Provider Private Offers (SPPO) is built on top of the CPPO program. It seeks to help ISVs leverage ecosystem partners to enhance sales, albeit in a scalable format, as a standardized pricing authorization program. Also, as a part of the channel program, SPPO essentially resells authorized ISV products listed within the AWS marketplace. However, does possess some specific differences when compared to CPPO.

SaaSify: Maximizing Co-Selling Potential on AWS Marketplace

AWS Marketplace provides ISVs with a powerful platform to expand their reach and accelerate sales. By participating in AWS partner programs and leveraging co-selling opportunities, ISVs can take advantage of the cloud marketplace’s growth.

SaaSify amplifies these opportunities by offering the right set of tools to transform, launch, and scale SaaS offerings effectively on AWS Marketplace. Integrating SaaSify into your strategy can unlock new levels of growth and success. Embrace the future of co-selling on AWS Marketplace with SaaSify and elevate your SaaS offerings to new heights.