1. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
For Partners:
Build Your Business on AWS
Max Peterson
2. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Agenda
• Why Partners choose AWS for Cloud
• Build your Business Plan and Offerings
• Customer Engagement
• Leverage AWS Partner Resources
3. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Time for Cloud is Now!
• 75% of organizations are investing in public cloud
services1
• Global IaaS growth projected at 29% CAGR2
• SaaS growth projected at 18%3
• AWS Partners are seeing 6x-11x revenue
multiplier on AWS spend
• AWS is a market leader
• https://aws.amazon.com/blogs/apn
1 Gartner. “Taming the Digital Dragon: The 2014 CIO Agenda.” 2014
2 Peraza, Yulitza & Zwakman, Gregory. “Cloud Computing Market Overview.” 451 Research Market Monitor, June 2014.
3 IDC, IDC’s Worldwide SaaS Enterprise Applications 2014–2018 Forecast
4. Gartner Magic Quadrant for
Cloud Infrastructure as a Service, Worldwide
Gartner “Magic Quadrant for Cloud Infrastructure as a Service, Worldwide,” Lydia Leong, Douglas Toombs, Bob Gill, May 18, 2015. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the
context of the entire report. The Gartner report is available at http://aws.amazon.com/resources/analyst-reports/. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select
only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied,
with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
5. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Consulting Services Opportunities
What Your Firm Offers Benefit to Customer Potential Revenue
Strategy Consulting,
Architecture
Utilize your own expertise working with AWS to help your customer
architect an environment that provides them with an optimized solution
on the AWS platform. Provide your customers with guidance through
portfolio analysis, new project identification with a focus on innovation
and agility, and migration analysis as well as ROI/TCO analysis .
Typically a fixed fee; often varies from $25K to
$250K+ depending on scope
Professional Services ,
Application Development,
Integration & Migration
Begin assisting the customer in implementing the design of their
environment on AWS. Your customer doesn’t have to worry about the
development, integration, and migration of workloads to AWS.
2X to 10X multiplier on top of the AWS spend for
professional services
Managed Infrastructure,
Application Services
You can take on the management and monitoring of a customer’s
application/workloads, and bundle this into an annual or monthly
offering per system, per user, or per workload.
20% to 50% uplift for a standard MSP
engagement on AWS spend
AWS Instance Optimization The customer benefits in the cost savings you’re able to attain for them
by working with AWS to provision the correct type of instances, such as
Reserved Instances (RIs).
Reduce your overall cost of servicing the
customer from ~30% to 60% by utilizing RIs;
increase your margin or pursue additional
projects with the customer leveraging savings
Software You can obtain the 3rd party software licensing for your customer 5% to 30% license margins
Repeatable Intellectual
Property (IP) & Additional
Solutions for Customers
Develop repeatable IP on AWS that you can offer to multiple customers.
You’re able to reduce your time to market through automation, and
have shortened development cycles. Additionally, customers realize
value much quicker .
Very flexible, and up to you; as an example, you
can normally charge based on # of seats/as a
subscription service . Leverage AWS Marketplace
for volume sales.
6. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Case Study
• APN Consulting Partner to develop,
run and manage apps
• 2 month engagement started
immediately – quicker value to
customer with AWS
• Created new managed services and
AWS cloud revenue streams
• Optimized AWS services to increase
profitability
Strategic Consulting $90,000
Professional Services/Application
Development
$350,000
Managed Infrastructure Services $60,000
1 Year of Infrastructure and Services to
run the application on AWS
$100,000
3rd Party Software Price $60,000
Total Price to Customer: $660,000
Partner Project Price for Customer
Strategic Consulting $90,000
Professional Services/Application
Development
$350,000
Managed Infrastructure Services $60,000
AWS Optimization, 40% Discount
Through RIs
$60,000
3rd Party Software, 20% Margin $48,000
Total Cost to APN Partner: $608,000
Partner Costs after AWS Optimization
7. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Cloud Transformation Opportunities
Customers
want results
fast – with AWS
you are able to
get more done
with less and
increase the
opportunity for
your firm and
your customers.
8. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Build your Business Plan
• What’s your plan to make money leveraging AWS Cloud Services?
– Consulting Partner Models – Managed services…
– Reseller Partner Models – Turnkey solutions…
– Technology Partner Models – XaaS…
– Tip: Implement AWS internally, encourage innovation
• Organize your Cloud Solution Team
– Create a Cloud Computing Practice
– Establish AWS competency and certification strategy
– Integrate Cloud support into existing helpdesk, NOC and SOC delivery teams
– Build cloud expertise into financial, contracts and legal teams
– Tip: Use AWS Cloud Team role definitions as a starting point
9. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Develop Cloud Offerings
• Define your Cloud Offerings to
meet customer needs and
enable rapid adoption
– Think cloud scale, cloud
speed, cloud economics
– Leverage reference
architectures and technical
documentation
– Use AWS compliance and
security accreditations to
speed time to market
– Extend your IP to include
cloud-based solutions
… And serve new markets in Mobility,
IoT, and Big Data
10. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Tip: Get Started Fast by…
• Using AWS services to deliver faster and lower your costs on
existing projects
• Starting new projects on the cloud and demonstrating thought
leadership
• Proposing cloud technology refresh and engineering changes
to save your customer money
• Moving your on-premise solutions to the cloud to capture new
markets
• Building and delivering repeatable solutions that are shared
across your business
11. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Customer Engagement Plan
• You are taking your customers on a journey …evaluate need
and readiness
• Customer expect speed, agility, innovation … your process
and delivery must adapt
• Cloud computing solutions will touch multiple stakeholders …
an integrated engagement approach is advisable
• Your AWS Partner Manager and the AWS Public Sector Team
want to help your customers … know your AWS teammates
• Customers are discovering solutions in new ways … have a
plan to use new channels
12. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Leverage APN Resources
• The APN Portal: Exclusive resources for AWS Partners
– AWS Government Partner Programs
– AWS Test Drive
– AWS Grid
– AWS Syndicated Marketing
– AWS Joint Partner Webinars
– AWS Partner Directory
– AWS Partner Training
– AWS Acceleration Funds
• Tip: Elevate your visibility by APN Tier and Special Competencies
• http://aws.amazon.com/partners
13. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
“Things may come to those who wait, but only
the things left by those who hustle.”
― Abraham Lincoln
14. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Thank You.
This presentation will be loaded to SlideShare the week following the Symposium.
http://www.slideshare.net/AmazonWebServices
AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Editor's Notes
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Approved talking points for internal and private meetings (e.g. customer meeting without other vendors or partners present):
AWS is rated as the “Leader” in this market evaluation far ahead of all other vendors assessed for the fifth consecutive evaluation, dating back to 2011.
Gartner increased its estimate of AWS market share and customer adoption over last year’s estimate – Gartner says in this report that AWS has ten times more cloud capacity in use than the other 14 providers combined (in 2014, that estimate was 5 times.)
AWS improved its market leadership position across both axes in this evaluation year-over-year even as Gartner increased the requirements expected of providers in the evaluation.
AWS is the only “Leader” recommended for implementing enterprise applications. Gartner recommends AWS for “all use cases that run well in a virtualized environment,” including enterprise applications.
Competitors clearly lag behind AWS in features and customer adoption. In 2015, all vendors except Microsoft and Amazon fell below the mid-point on ability to execute, with IBM, CSS and Verizon slipping significantly and HP falling out of the report entirely. About Microsoft, Gartner states, “Furthermore, customers express concern about the global impact of many past Azure outages, which may necessitate ensuring that critical applications on Azure have a non-Azure disaster recovery solution.” About Google, Gartner states, “[Google] is still in the rudimentary stages of learning to engage with enterprise and midmarket customers, and needs to expand its sales, solutions engineering and support capabilities,” and that, “Google lacks many capabilities important to businesses that want to migrate legacy workloads to the cloud.”
NOTE: the above comments and quotations cannot be used in any public forum. This is includes but is not limited to events and conferences (AWS, partner or customer), media events, user groups and written communications such as promotional materials, websites, and email to anyone external to AWS. If you are in doubt please contact aws-ar@amazon.com for help.
Services = strategic consulting engagement + 7 week develop/test/deliver period requiring 6 people @ ~$200/hr