One of the numbers I love citing is the ratio of Microsoft’s revenue to its service partners’ revenue. That number is about $7 for every $1 of revenue.
AWS has a number too – and it’s $6.40, per AWS, commissioned research from Canalys. Quoting TechTarget:
The Canalys report stated that expert-level partners can obtain the $6.40 multiplier. The company defined an expert partner as one that has the “broadest set of service offerings and … a large professional services organization.” In contrast, partners that primarily resell AWS cloud products and offer limited additional services can expect to achieve a multiplier of ninety cents, according to Canalys.
Partners that take this disciplined approach can find an economic return much greater than the 6:1 ratio Canalys identified.
On a day, I’m hosting a panel about Cloud SaaS (which, if you missed it, is available on YouTube at youtube.com/mspradio), highlighting the data about the ability to deliver services on top of the cloud felt prescient. Most important to me is that the number remains healthy – there is money to be made on top of the cloud, full stop.
And, if this number is indicative, AWS vs Microsoft isn’t an issue. Also, good news.