Six partner bosses give verdict on AWS as public cloud giant turns 20
Top execs from Softcat, SCC, Bytes, WWT, ANS and Bell Integration open up on where AWS sits in their businesses, two decades after it made its debut as a developer tool
Soaring annual growth rates of close to 40 per cent may mean AWS still has the feel of a youthful start-up.
But, incredibly, the public cloud giant turns 20 this month, at least going by the date Amazon debuted the platform as a developer tool (the public launch didn't come until 2006).
In recognition of this milestone, we asked six partner leaders about where AWS stands in their business today and how they think the public cloud giant can steal marketshare from more channel-hardened competitors such as Microsoft Azure.
Underlining its burgeoning channel footprint, AWS was picked as a top-five vendor by more respondents in the recent CRN Vendor Report than all bar five vendors (Microsoft, Cisco, Dell, HPE and HP), in the process bagging one of the highest average scores for Technology Leadership.
But although AWS now boasts a $75bn-revenue runrate, and the adoption of public cloud is increasingly seen as a case of 'how, not why', some of the partner bosses quoted below felt that AWS has scope to up its game in areas such as rebates, direct-vs-channel conflict and managed services.
‘AWS sat outside our top 50 vendors three years ago - now it's top 10'. See next page for Softcat CEO Graeme Watt's views on AWS...
Six partner bosses give verdict on AWS as public cloud giant turns 20
Top execs from Softcat, SCC, Bytes, WWT, ANS and Bell Integration open up on where AWS sits in their businesses, two decades after it made its debut as a developer tool
‘AWS sat outside our top 50 vendors three years ago - now it's top 10'
Graeme Watt, CEO, Softcat
Where does AWS now sit in your vendor hierarchy, and can you give us an idea of how that's changed?
Since we onboarded AWS as a partner a number of years ago, they have now grown to be a top 10 vendor. In the past couple of years they have risen quite sharply in our list - sitting outside the top 50 just three years ago and then with a sharper move from high-teens into that top 10 this past year. There are two main drivers for that growth: the breadth of the product set that AWS offer to support our customers' hybrid journey; and the growing number of ISVs that provide their products and services in the AWS Marketplace.
Where are you seeing the biggest growth opportunity around AWS right now?
We see opportunity across all of AWS right now. Our customers are looking to develop more workloads in the cloud and also to use public cloud as a complementary technology to their current strategies in a hybrid, multi-cloud way. They are also looking for more flexible methods of transacting with us and the Marketplace offers them a place where they can optimise.
In the past couple of years they have risen quite sharply in our list - sitting outside the top 50 just three years ago and then with a sharper move from high-teens into that top 10 this past year
Name one thing AWS should work on if it is to gain further traction in the channel?
As a vendor that wasn't born in the channel, there are always going to be amendments to how they interact with partners as they become more accustomed to our ways of working and our customers' demands. I think particular focus on how they support us with ongoing customer billing when the customer no longer consumes the services is particularly relevant at the moment. Especially as pressures on our economy continue to squeeze.
"A commitment to not directly approach partners' staff would I think benefit the whole community albeit we haven't experienced this ourselves". Which partner MD said it? See next page for more...
Six partner bosses give verdict on AWS as public cloud giant turns 20
Top execs from Softcat, SCC, Bytes, WWT, ANS and Bell Integration open up on where AWS sits in their businesses, two decades after it made its debut as a developer tool
‘The biggest growth opportunity around AWS is in marketplace'
Jack Watson, managing director, Bytes Software Services
Where does AWS now sit in your vendor hierarchy, and can you give us an idea of how that's changed?
AWS now sits comfortably in our top 10 vendors and profits have doubled in the last year.
Where are you seeing the biggest growth opportunity around AWS right now?
The biggest growth opportunity for our AWS business is in marketplace as the consumption rates for cloud workloads and subscriptions are relatively low for the energy used to identify, migrate and manage them.
Name one thing AWS should work on if it is to gain further traction in the channel?
A commitment to not directly approach partners' staff would I think benefit the whole community albeit we haven't experienced this ourselves
The best thing AWS could do would be to simplify consumption rebates; pay channel partners a good basic rebate for AWS cloud consumption regardless of size, whether it is a new or old subscription or EDP [the AWS Enterprise Discount Program] client. In our experience, having a consistent basic rate that's attractive to the channel creates clarity and confidence in partners committing more resources upfront to migrate new workloads and grow existing. Accelerators on top of this for the services and growth AWS want would then create more sustainable profits as consulting partners skill up. A commitment to not directly approach partners' staff would I think benefit the whole community albeit we haven't experienced this ourselves.
How big is your AWS team?
Bytes AWS has expanded to more than 20 technical consultants across the world.
How would you assess the margin opportunity around AWS, particularly when compared with public cloud alternatives?
AWS margins are low due to the complexity of the model. The energy expended to hunt for best funding and rebates could be used to drive more customer engagement. In comparison to Microsoft, AWS are behind their CSP model, but both of their direct models compete with as much as they complement channel engagements.
How do you position AWS against the other public cloud and traditional on-premises infrastructure vendors you carry?
A hyperscale provider with a diverse array of service capability that complements a well-rounded infrastructure design. We see a lot of positive relationships and interaction with ISVs
To what extent is AWS' direct sales background an obstacle to the relationship?
I think they've been very supportive of the channel.
"A focus on partner profitability and making a market for MSPs would be received well". See next page to discover which partner CTO made this plea...
Six partner bosses give verdict on AWS as public cloud giant turns 20
Top execs from Softcat, SCC, Bytes, WWT, ANS and Bell Integration open up on where AWS sits in their businesses, two decades after it made its debut as a developer tool
"A focus on partner profitability and making a market for MSPs would be received well"
Joe Wolski, CTO, ANS
Where are you seeing the biggest growth opportunity around AWS right now?
Organisations are looking at ways to modernise their apps to better serve customers and innovate faster. There are big opportunities in AWS for scalability and use of data. We support a lot of developer-centric/digital native SMB organisations and start-ups who are looking to AWS to modernise. They already know they want AWS; they just need help getting there.
Name one thing AWS should work on if it is to gain further traction in the channel?
Allowing partners to bring in their value-add and help customers get more from AWS technology could be a great move for AWS, the partners and the end customer. A focus on partner profitability and making a market for MSPs would be received well. AWS have done a great job for ISVs with Marketplace - it would be a brilliant move for them to make the same focus and commercial opportunity available to MSPs.
How big is your AWS team?
We have multidisciplinary squads centred around different solution sets like cloud infrastructure, data and AI, rather than any specific vendor. Each squad looks after a small pool of dedicated customers. It means better service for the customer who has a relationship with the same few engineers who understand their requirements implicitly.
How do you position AWS against the other public cloud and traditional on-premises infrastructure vendors you carry?
Customers typically come to us with a preference in mind depending on what they're trying to do. There's been a shift now the market has matured. It used to be that we'd independently recommend the right platform. Now customers have already decided where they want to go, but are looking for expertise to help them deliver.
'"It needs to decide if it's a partner-centric organisation or a direct sales organisation". Who said it? See next page for more...
Six partner bosses give verdict on AWS as public cloud giant turns 20
Top execs from Softcat, SCC, Bytes, WWT, ANS and Bell Integration open up on where AWS sits in their businesses, two decades after it made its debut as a developer tool
"It needs to decide if it's a partner-centric organisation or a direct sales organisation"
James Henigan, managing director of Hyperscale and Cyber, SCC
Where does AWS now sit in your vendor hierarchy?
AWS and Azure remain our two strategic vendors and platforms; we have to be experts in what we do which limits how many platforms and technologies we wish to specialise on. Whilst multi-cloud is real, we see the majority of opportunities still being aligned to single cloud.
Where are you seeing the biggest growth opportunity around AWS right now?
Our key focus is around application modernisation. Many of our clients embarked on their public cloud journeys with specifically AWS early and so are now embarking on the next phase of that journey to modernise applications, leverage cloud native efficiency and explore differentiators for business value within the tech stack.
Name one thing AWS should work on if it is to gain further traction in the channel?
It needs to decide if it's a partner-centric organisation or a direct sales organisation; if the latter, partners need to be clear exactly the role they play - and how - and avoid being the front of an opportunity and just be the service provision. They need to also treat partner relationships holistically rather than just a "pure-play public sector or pure-play commercial sector" partner as this doesn`t fit the shape of many larger partners.
How would you assess the margin opportunity around AWS, particularly when compared with public cloud alternatives?
Typically not as strong as incentives from Microsoft on licensing, but the opportunity for services revenue remains comparable which is where our focus lies.
It's a concern and we have seen real-world examples of AWS taking business direct from its partners which does not foster a relationship of trust and partnership. There would need to be greater confidence building with AWS for us to willingly share opportunities like we would with Microsoft because of this.
To what extent is AWS' direct sales background an obstacle to the relationship?
It's a concern and we have seen real-world examples of AWS taking business direct from its partners which does not foster a relationship of trust and partnership. There would need to be greater confidence building with AWS for us to willingly share opportunities like we would with Microsoft because of this.
How does AWS now fit into WWT's EMEA business? Director Jack French explains on the following page...
Six partner bosses give verdict on AWS as public cloud giant turns 20
Top execs from Softcat, SCC, Bytes, WWT, ANS and Bell Integration open up on where AWS sits in their businesses, two decades after it made its debut as a developer tool
"To borrow an Amazonian term, we like to work backward from the desired outcome"
Jack French, director, Cloud Platforms, World Wide Technology
Where does AWS now sit in UK/EMEA's vendor hierarchy, and can you give us an idea of how that's changed?
Over the last six months, it has gained significant interest. We are currently working on investing and expanding our capabilities with AWS in EMEA.
Where are you seeing the biggest growth opportunity around AWS right now?
AWS has a massive +$80bn backlog that represents a tremendous opportunity for AWS partners to help organisations meet their cloud commitment and accelerate their adoption of cloud services. Additionally, with the growing interest in leveraging the AWS Marketplace there is a significant opportunity to help build integrated solutions with ISV and OEM partners offered through the Marketplace.
Name one thing AWS should work on if it is to gain further traction in the channel?
AWS can gain additional traction in the channel by removing collaboration barriers and enhancing its partner programmes. Consistency in incentivising partners across programmes, including driving new AWS service adoption, partner-led resell, managed services, and Marketplace, will reduce complexity and help partners help clients faster.
AWS can gain additional traction in the channel by removing collaboration barriers and enhancing its partner programmes
How do you position AWS against the other public cloud and traditional on-premises infrastructure vendors you carry?
To borrow an Amazonian term, we like to work backward from the desired outcome. In some scenarios, AWS provides the best outcome for our customers. In other situations, it may be neutral or not ideal. WWT has expertise across public, hybrid, and private cloud technologies, with a long history of building integrated solutions with our partners. We bring this broad scope of technical expertise and consulting experience to recommend the right technology to address the desired outcome.
To what extent is AWS' direct sales background an obstacle to the relationship?
The Amazon leadership principle "Earn Trust" seems to fit here. If distrust exists, this can be a considerable obstacle. However, when sales teams align on the best interest of our joint clients, trust is gained, and relationships are built that provide the best outcomes for our mutual clients. That alignment can take time, and both parties must go in with an open mind of collaboration and trust.
See final page for Bell Integration's Stuart McMinn's views on AWS...
Six partner bosses give verdict on AWS as public cloud giant turns 20
Top execs from Softcat, SCC, Bytes, WWT, ANS and Bell Integration open up on where AWS sits in their businesses, two decades after it made its debut as a developer tool
"We are seeing larger organisations setting targets as high as 60 per cent for migration of on-premise server-based solutions to public cloud"
Stuart McMinn, chief technology officer, Bell Integration
Where are you seeing the biggest growth opportunity around AWS right now?
We are seeing many customers adopting "cloud first" strategies for new business applications and services, and larger organisations setting targets as high as 60 per cent for migration of on-premise server-based solutions to public cloud. Whilst this does leave room for data centre infrastructure which remains a core part of Bell's technology business, it does show the increasing momentum for cloud.
Where does AWS now sit in your vendor hierarchy?
AWS sits as one Bell's most strategic technology partners and many of our service including cloud access, our accelerated cloud solution for SMEs and our IoT solution offerings incorporate AWS as a core component. As such we ensure that all areas of our business including consulting, managed services, presales and sales are trained and accredited extensively in AWS service offerings.
Name one thing AWS should work on if it is to gain further traction in the channel?
The key changes we would like to see is AWS understanding that organisations like Bell are helping their customers adopt cloud faster and therefore should be recognised for our contribution within the AWS ecosystem, and no reductions in margin based on duration.
There are two key challenges for organisations like Bell who provide migration and managed services to some of the largest financial and telco organisations who tend to transact directly with AWS rather than through a partner, as well as white-labelled services through other SIs and managed service providers who might be reselling AWS consumption themselves. The first is that AWS do not recognise these activities towards our partner accreditations. The other challenge being of course reduced margins being available after two years of any given solution, therefore creating a push to deliver alternative solutions.
The key changes we would like to see is AWS understanding that organisations like Bell are helping their customers adopt cloud faster and therefore should be recognised for our contribution within the AWS ecosystem, and no reductions in margin based on duration.