How to use AWS partner programs for effective cloud sales growth

We already know of cloud marketplaces, especially the AWS marketplace, as powerful nodes of software distribution.

According to IDC's CloudShare Global Survey, cloud marketplaces accounted for 18.6% of emerging independent software vendor (ISV) revenue in 2023 (up from 15% in 2022). AWS is already recognized as one of the largest software distributors in the world despite entering the software distribution space nearly two decades after Ingram Micro.

But as the focus shifts from net new revenue to net profit, partnerships and cloud alliances leaders find themselves increasingly having to justify the cost of sustaining these marketplace relationships, including:

• Marketplace transaction fees
• Reseller/distributor margins
• Cost of operations with hyperscalers

Thankfully, AWS offers ISVs a means to trim the cost of doing business through its marketplace through AWS partner programs that offer:

• Better training and objection handling to improve seller efficiency on the AWS marketplace
• Improved co-sell support on strategic deals through the AWS Marketplace
• Lower total cost of ownership (TCO) of a listing through fee reduction or incentivization
• Added incentives to build new strategic partnerships with AWS

Understanding AWS Partner Programs

To understand AWS Partner Programs, we must first understand the distinct relationships between the AWS Marketplace, the ISVs selling through the marketplace, and the network of intermediary players that work together to create the AWS Partner Network.

Today, the AWS Partner Network has over 140,000 members—independent software vendors (ISVs), system integrators (SIs), channel partners, resellers, service providers, and more—and is spread across 200+ countries and territories.

How the AWS Partner Network grows

A Canalys report finds that the AWS Partner Network can achieve a 6.4X return on investment (ROI) by influencing sales of AWS solutions (including compute consumption).

Depending on where you fall on the AWS partner flywheel (refer to the image above), this ROI multiple is typically achieved in progressive phases across a minimum three-year period. While the early gains come from the AWS Marketplace adding net new revenue to your business, it scales pragmatically through AWS Partner Programs, making each deal more cost-effective at scale.

Benefits from these programs range anywhere from better deal support to direct cash incentives. Here’s what AWS partners may expect:

1. More credibility with customers: Some partner programs certify participating organizations, offering the opportunity to position yourself as an AWS-certified solution to your prospective customers
2. Fast-moving co-sell deals: Specific partner programs open up pathways to better co-sell support in the form of deal referrals or access to AWS’ distribution network
3. Expanded commission-based revenue: Specific programs serve to authorize resellers to distribute AWS’ first-party solutions with preferred discounts
4. Cash-based incentives on sales: ISVs can also access a threshold-based incentives system on crossing sales milestones through the AWS Marketplace
5. Brand advantage through co-marketing with AWS: Partner programs are also pathways for businesses to build better brand advocacy by marketing a unified value proposition with AWS

Because there are several pathways leading to different advantages, we advise businesses to be outcome-oriented when selecting a partner program. In this article, we will highlight programs that will help ISVs build better sales collaboration or find added incentives.

AWS ISV Accelerate program

This program is specifically designed for software businesses that are either built on AWS or deeply integrated with AWS services. At its core, the program functions as a performance-based co-selling program.

When an ISV generates opportunities that drive AWS consumption, they gain access to a comprehensive support system that includes AWS's sales teams, solution architects, and marketing resources. This creates a mutual benefit system where both AWS and the ISV partner work together to drive customer success.

The program proposes three key benefits:

1. Gain direct access to AWS's sales organization: When an ISV identifies a potential customer, they can quickly engage AWS sales representatives who understand both the technical and business aspects of the solution. This collaboration often leads to faster deal closure rates, as customers benefit from the combined expertise of both organizations.
2. Lower cost of transaction through the marketplace: By participating in the ISV Accelerate program, vendors can potentially reduce their marketplace listing fees. This incentive becomes particularly valuable as transaction volumes increase, directly impacting the bottom line of growing software companies.‍
3. Specialized support for enterprise deals: This includes access to AWS solution architects who can help address complex technical questions, and enterprise sales specialists who understand the nuances of large-scale implementations. This level of support proves invaluable when navigating complex enterprise sales cycles that often involve multiple stakeholders and technical requirements.

Path to growth with the AWS ISV Accelerate program

• Undergo an onboarding period lasting four to six weeks on average
• Receive training on AWS co-sell, and find access to program resources
• Actively participate and share opportunities with AWS
• Benefits materialize in terms of better co-sell collaborations in the first quarter
• Complete the first few transactions and strengthen your relationship with AWS
• Additional benefits like reduced marketplace fees start applying

Eligibility for AWS ISV Accelerate

Software vendors must first establish themselves as AWS Partners and list their solutions on the AWS Marketplace. Beyond this baseline requirement, ISVs need to demonstrate technical maturity through AWS Technical Baseline Review, which evaluates the solution's architecture, security protocols, and operational excellence. Additionally, AWS expects participating ISVs to maintain a healthy pipeline of opportunities that drive AWS service consumption, typically showing a track record of consistent customer engagement and cloud usage growth.

AWS Global Startup program

This invite-only program is streamlined for funded, early-stage to mid-market businesses that have achieved product-market fit (PMF) and are ready to scale. In recognition that each business has a unique growth trajectory, the AWS Global Startup Program takes a more holistic, long-term approach to startup development.

It offers customized, comprehensive support across technical, business, and go-to-market dimensions. This helps extend beyond basic cloud credits, focusing instead on building sustainable growth engines. Unlike traditional accelerator programs, the global startup program extends tailored help for ISVs to scale.

The key benefits of enrolling in this program are:

1. Technical enablement with dedicated solution architects: Startups receive direct access to AWS solution architects who work closely with their teams to optimize cloud architecture and implement best practices. This technical guidance ensures the startup's technology stack can scale efficiently during crucial growth phases, maintaining performance while rapidly expanding their user base.
2. Business development through AWS's partner ecosystem: The program opens doors to AWS's vast network of enterprise customers, system integrators, and technology partners. This network effect accelerates market entry and expansion, leading to faster customer acquisition and strategic partnership opportunities that startups might not develop independently.
3. Access to AWS's global marketing engine: Participating startups gain co-marketing opportunities, event participation, and storytelling support to build credibility in target markets. This becomes particularly valuable when expanding into new geographic regions or market segments, as startups can leverage AWS's established brand presence.

Eligibility for the Global Startup Program

Soon after the launch of this program in 2020, Doug Yeum, (then) head of the Global Partner Organization, explained AWS’ recruitment criteria that would qualify startups to be recommended for this program:

"We also proactively invite mid to late-stage startups built on AWS that, based on market signals, are showing traction and offer interesting use cases for our mutual enterprise customers."

Doug Yeum

(Former) head of the Global Partner Organization |  AWS

Since the program is now purely invite-only, here are a few recommendations for maximizing your chance of a successful enrollment call.

• Either build an AWS-native solution or expand your AWS compute consumption
• Build complementary solutions to AWS first-party solutions
• Show potential to increase AWS compute consumption for customers using your solution

APN Customer Engagement Program

This program serves as a bridge between AWS partners and enterprise customers actively seeking cloud solutions, creating a structured pathway for meaningful customer engagements that drive business growth.

Unlike traditional lead-generation programs, the APN Customer Engagements Program takes a more sophisticated approach by focusing on influencing sales conversions through quality-focused lead-sharing.

It works by identifying specific customer needs and matching them with partners who possess the exact capabilities and experience required to address those needs. This targeted matching process significantly increases the likelihood of successful engagements and long-term customer relationships.

For program participants, this yields the following benefits:

1. Qualified customer introductions: Partners receive carefully vetted opportunities from AWS's enterprise customer base alongside detailed context about the their needs, technical requirements, and business objectives. This deep contextual understanding allows partners to target and engage said accounts more effectively.
2. Strategic opportunity alignment: AWS Partners in this program are aligned with their own relationship managers (also known as Partner Development Managers, or PDMs) who provide early insights into upcoming AWS Marketplace initiatives, guaranteeing that partners can proactively leverage upcoming capabilities and opportunities, granting them competitive advantage over peers who might not find the same insights.
3. Enhanced credibility through AWS advocacy: This program is built for partners to find shared co-sell opportunities with AWS. AWS actively recommends the right partner to the customer, leading to direct endorsement and support. AWS account teams also actively participate in customer discussions, lending their credibility and expertise to strengthen the partner's position. This three-way collaboration between AWS, partners, and customers often results in more substantial engagements and higher success rates.
4. Outcome-based incentives: AWS also supports ISVs in this program with direct cash incentives to support both lead-generation perspective – by supporting with Marketing Development Funds (MDF) and product growth – through Partner Opportunity Acceleration Funds

Eligibility for APN Customer Engagements Program

To participate effectively, partners must:

• Maintain Advanced or Premier tier AWS Partner Network status
• Hold relevant AWS Competencies in their focus areas
• Show proven experience with enterprise customer deployments
• Maintain dedicated technical and sales resources
• Demonstrate financial stability and operational maturity
• Commit to maintaining high customer satisfaction metrics

Accelerating growth through AWS Partner Programs: Strategic recommendations

The key to maximizing value from AWS Partner Programs lies in strategic program selection and systematic execution. Based on successful partner experiences, here are critical recommendations for building a strong AWS partnership foundation:

Strategic program alignment

Start with your core strengths:

• Choose your initial program based on your current business model and maturity
• ISV Accelerate works best for established software companies ready for enterprise sales
• Global Startup Program suits venture-backed companies with innovative solutions
• APN Customer Engagements Program benefits partners with proven delivery capabilities

Build complementary program stacks:

• Combine programs strategically - for example, use ISV Accelerate for sales acceleration while leveraging the Global Startup Program (if eligible) for technical enablement
• Ensure you have resources to effectively participate in each program
• Focus on programs that offer synergistic benefits rather than overlapping ones

Execution excellence

Invest in AWS expertise:

• Maintain a dedicated AWS partnership team
• Invest in AWS certifications across technical and business tracks
• Stay current with AWS's evolving service offerings and program requirements

Drive mutual success:

• Actively track and report on AWS consumption through your solutions
• Share customer success stories and references with AWS teams
• Participate in AWS events and community initiatives
• Maintain regular communication with your AWS partner team

Focus on measurable outcomes:

• Set clear KPIs for each program engagement
• Track and optimize co-sell win rates
• Monitor customer satisfaction scores
• Measure reduced time-to-market for new features

Building long-term AWS relationships

To establish yourself as a valued AWS partner:

Commit to continuous improvement:

• Regularly review and update your AWS technical architecture
• Seek feedback from AWS teams and implement suggested improvements
• Stay ahead of AWS's technical and business requirements

Be proactive in engagement:

• Don't wait for AWS to drive engagement - lead with opportunities
• Maintain regular business reviews with your AWS partner team
• Share your product roadmap and growth plans with AWS

Leverage AWS's ecosystem:

• Build relationships with other AWS partners for complementary solutions
• Participate in AWS's partner community events
• Contribute to AWS's partner success stories and case studies

Remember, successful AWS partnerships are built on a foundation of mutual value creation. The most successful partners are those who not only leverage AWS's resources effectively but also contribute significantly to AWS's ecosystem through innovation, compute consumption, and consistent customer delight.