Amazon Web Services Launches “Buy with AWS,” a Game Changer for Cloud Software Sales
Amazon Web Services (AWS) has unveiled a groundbreaking new feature, “Buy with AWS,” designed to revolutionize how cloud software is purchased. This innovative button, similar to the successful “Buy with Prime” program for e-commerce, allows customers to seamlessly purchase software solutions directly from partner websites using their existing AWS accounts. This move represents a significant strategic shift for AWS, aiming to bolster both customer and partner loyalty while simultaneously increasing its own market share in the fiercely competitive cloud computing landscape.
Key Takeaways: A New Era in Cloud Software Acquisition
- Seamless Integration: “Buy with AWS” offers a frictionless purchasing experience, allowing customers to leverage their existing AWS accounts for software purchases on partner websites.
- Enhanced Loyalty: The initiative aims to strengthen customer and partner loyalty by streamlining the purchasing process and offering additional benefits.
- Strategic Advantage: The easy integration could give AWS a competitive edge over rivals like Microsoft Azure and Google Cloud Platform.
- Free for Partners: AWS is not charging software companies to embed the “Buy with AWS” button, making it a compelling proposition to increase sales.
- Increased Revenue for AWS: The program ultimately drives higher revenue for AWS as purchases are made through its platform.
“Buy with AWS”: How it Works and its Potential Impact
The “Buy with AWS” button directly integrates into the websites of AWS Marketplace partners, allowing customers to purchase software solutions with a familiar and trusted payment method tied to their AWS accounts. This streamlined process bypasses the typical complexities of purchasing software from various vendors, leading to faster transactions and greater convenience. For AWS partners, integrating with the button is free, requiring only that their software is already listed on AWS Marketplace. Amazon had already reduced marketplace fees to 3% or lower in some cases this year, following a similar trend by Microsoft and Google. This makes participation even more attractive.
Benefits for AWS Partners
The advantages for AWS partners are significant. Beyond the ease of implementation, the button provides improved visibility and accessibility to a vast customer base that is already familiar with the AWS ecosystem. This can translate directly to increased sales and market penetration. David Meyer, senior vice president of product management at Databricks, highlighted the potential for accelerated adoption of their services on AWS, stating, “We should really see an acceleration of people that go and use it on AWS, because it’s so easy.” His assertion that “this will give AWS the advantage over other clouds” carries significant weight given Databricks’ experience with Microsoft Azure.
Benefits for AWS Customers
For AWS customers, the benefit is a more efficient and convenient purchasing experience. The integration with existing AWS accounts simplifies the payment process, eliminating the need to create new accounts or manage multiple payment methods. Furthermore, customers are able to utilize any existing Amazon discounts tied to their AWS accounts lowering the cost for the products purchased. This enhanced convenience is expected to increase customer satisfaction and loyalty, fostering a stronger relationship with the AWS ecosystem.
Comparison with “Buy with Prime”: A Different Use Case
While “Buy with AWS” shares similarities with Amazon’s successful “Buy with Prime” program, which allows Amazon Prime subscribers to complete purchases on external websites using their Prime accounts, there are key differences. Matt Yanchyshyn, AWS’ vice president of marketplace and partner services, emphasized that “Buy with AWS is ultimately a very different use case,” although there is collaboration between the teams. While both initiatives focus on enhancing user experience and customer loyalty, “Buy with Prime” is a fee-based service for retailers, while “Buy with AWS” is free for participating software vendors. This difference reflects the differing strategic goals, the expansion of Amazon’s retail ecosystem on one side, and the expansion of their cloud dominance on the other.
Industry Response and Future Implications
The launch of “Buy with AWS” has been generally welcomed by industry analysts and partners. Ed Anderson, a vice president at Gartner, noted that “it’s generally all upside,” suggesting that this simplifies purchasing for customers, leading to both increased sales for partners, and revenue for AWS. The success of this feature could very well usher in a new era of seamless cloud software acquisition. Workday, a major player in finance and HR software, plans to integrate “Buy with AWS” into its Adaptive Planning Product resulting from their 2018 acquisiton of the company for $1.5 billion. Matthew Brandt, Workday’s senior vice president of global partners, noted that the plan is to “get software in the hands of business users faster,” and is particularly excited to “test this capability out on potential buyers familiar with AWS but not necessarily familiar with Workday”.
The impact of “Buy with AWS” goes beyond just improved convenience. It has the potential to reshape the competitive landscape of cloud computing, giving AWS a significant edge over its competitors. By making it simpler and faster to purchase software on its platform, AWS further strengthens its position as the leading provider of cloud infrastructure. The initiative might also encourage other cloud providers to develop similar solutions, leading to increased innovation and consumer choice in the long term.
In conclusion, Amazon Web Services’ “Buy with AWS” is more than just a new purchasing option; it’s a strategic move that could significantly alter the dynamics of the cloud software market. By enhancing convenience for customers and lowering barriers for partners, AWS is not only boosting its own revenue stream but also strategically solidifying its dominance in the industry. The next few years promise to provide a crucial test of how effectively this new strategy will play out, and its broader influence on future cloud-based purchases.
