AWS re:Invent 2023 recap: An insider view

Introduction to AWS re:Invent

AWS re:Invent is the biggest cloud computing event of the year hosted by Amazon Web Services (AWS). Since its inception 11 years ago, it has been the epicenter of innovation and learning in the cloud space.

AWS re:Invent 2023 was held in the ‘Neon City’- Las Vegas from November 27 to December 01 this year. The event brought together a community of a whopping 50,000+ cloud enthusiasts. The in-person event featured keynote announcements, 2,000+ breakout sessions, the expo, after-hour events, builder labs, workshops, demos, service announcements, and many learning opportunities. Trunal Bhanse, Aayush Bahuguna, Brian Lawrence, and Michaela Powell represented Clazar at the event and experienced the magic unfold live.

While the watchword at the event was Generative AI making a solid debut with AmazonQ, the cloud marketplace ecosystem silently saw groundbreaking transformations. This blog gives you the insider view of the event, and the key highlights to stay updated with the cloud computing space.

A game-changer for software sellers

One of the most impactful revelations is the price cuts on marketplace transactions. Starting January 1, 2024, AWS has implemented a reduced flat fee of 3% for partners marketing their solutions. In some cases, if the customer or the partner has a significant private pricing agreement with AWS, it’s even lower. This revolutionary change will open new doors for partners and facilitate a broader reach to buyers seeking specialized industry solutions.

Here are the updates to the pricing model:

• For private offers under a million, it’s now a 3% fee.
• For deals between $1 million and $10 million, it’s now a 2% fee.
• For private offers greater than $10 million, it’s now a 1.5% fee.
• For renewal fees for private software and data, it’s now a 1.5% fee.

Aayush met a senior support Engineer from the AWS solutions team, who helped us expedite the publishing of six AWS listings in just one day. Here’s his experience in his own words.

‘It was a pleasure meeting the AWS Solutions team. They oversee AWS Marketplace testing integration and streamline the process of ISV onboarding. Their responsiveness and proactive approach to removing roadblocks and providing timely feedback are paramount to our success.’

Aayush Bahuguna
CTO and Co-Founder, Clazar

Powerful integrations: AWS APIs + Salesforce connector

AWS Marketplace launched APIs and a Salesforce connector during the event. This integration allows software sellers to automate transactions within their existing tools. This is a paradigm shift for partners like innovative solutions, enabling them to automate and streamline their managed services, create a private offer, and process high-volume transactions without needing a sales representative to hold their hand.

Trunal shares an interesting conversation with one of the business leaders from the event. Read in his own words.

‘The AWS API + Salesforce integration transformed the way sellers perceive cloud marketplaces. I encountered a CEO of a burgeoning company that trains engineers. He shared an interesting observation that the Salesforce integration dispelled the misconception that cloud marketplaces is a GTM channel best-suited for mature enterprises. The CEO expressed eagerness to learn more about the depths of cloud marketplaces.’

Trunal Bhanse
CEO, Clazar

Clazar Cloud GTM platform now has an API integration with AWS Marketplace, enabling customers to:

1. Create the fastest private offers in a few clicks
2. Get actionable insights on buyers and contracts
3. Automate co-sell operations from Salesforce
4. Real-time notifications for immediate actions
5. Access accurate timestamps for contract creation, upgrades, and renewals
6. Have stronger visibility with in-depth marketplace analytics

This enables AWS Marketplace access within your native application seamlessly without switching to the AWS Marketplace domain. Talk to us to learn how you can leverage our APIs on AWS marketplace.

AWS raises stakes with every opportunity

AWS’s sphere of influence in accelerating its ISV’s revenue is increasing every year. Companies such as Crowdstrike and Drata are the reference points to this fact.

• It’s fascinating to see that the active customers in the AWS marketplace have increased by 287%.

• Drata, an AWS ISV has unlocked over 6000 Co-Sell opportunities on the marketplace in 2023.

• Crowdstrike exceeds the first massive milestone of achieving 1 billion dollars in software sales on AWS marketplace.

A strong foundation

Linux Foundation, our customer, started AWS re:Invent on a high note. Their team released their first-ever private offer with us during the event. What’s heartening was that they launched not one but two incredible private offers in a matter of minutes.

Firstly, our team ensured that they were listed before the event so that they could bank on the discounts for trading packages. We’d also love to bring to spotlight the efforts put in by our team in training them live to launch the private offer. It's certainly one of our fondest memories of the event.

Our Customer Success Manager, Michaela Powell, vividly recalls the conversations with the Linux Team. Read it in her own words.

‘It’s incredible to see your customers going up the ladder in their marketplace journey. Darrell Flewell, Mary Campbell, and Robert Reeves were amazing to work with, and their zeal to witness marketplace growth was seen in their interactions. They loved everything about the Clazar marketplace platform, the ease of access to the marketplace, and the speed at which one can create private offers. Amid a zillion discoveries at the event, this one’s my favorite.’

Michaela Powell
Customer Success Manager, Clazar

The key takeaways

• Growth determines fees: Changes to the pricing model, especially introducing a flat fee approach, will be instrumental in normalizing the fee standards for all businesses. This particularly favors the fast-growers, as the higher the transaction volume, the lower the fees
• Expanding industry horizons: With the API + Salesforce integration launch, AWS has now set the stage for companies from any industry beyond the technical infrastructure, security, and data services to leverage APIs and grow to new heights
• Revenue recognition gains prominence: The API launch has inspired many FinTech organizations to explore marketplace solutions over payment processing platforms to have more holistic view and control of the revenue growth and recognition process
• Mythbusters: The flat tier fee structure will benefit companies of all sizes and breaks the myth that marketplaces are only for enterprises
• DIY becomes outdated: The API launch brought in a transformative change in the outlook of software sellers who were operating on marketplaces with a DIY model. This shift makes it easy for sellers and ISVs to work with third-party solutions such as Clazar and succeed on AWS
• An easy operating model: The Salesforce connector further enhances the overall user experience as sellers will now have one less platform to stay abreast with

The road ahead

With 15,000+ listings and over 330,000 active subscribers, the AWS Marketplace is a thriving ecosystem for over 1,300 channel partners. These figures are expected to boost revenue streams and expedite customer acquisition, particularly for channel partners and ISVs.

With a whopping 234% Return on investment (ROI), 50% Faster deal closures, 133%+Private offer growth rate, and 40% Net-new business, the AWS Marketplace offers software sellers and ISVs a comprehensive platform to procure, provision, and sell software.

Sellers who are not leveraging the marketplace will lose out on substantial sales opportunities, given the growth and lowered transaction fees. So, no matter where you are in your software sales journey, getting on to the cloud marketplace is a must for 2024 to achieve your maximum revenue potential.

Learn how you can start your cloud marketplace journey. Talk to us. Drop us an email at hello@clazar.io and we'll get back to you.
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