AWS SMB Competency: Equipping Partners to Capture the Next-Gen Cloud Opportunity

Amazon Web Services (AWS) has been a leader in cloud computing since 2006. Its success depends on a strong network of channel partners. These partners are brought together through the AWS Partner Network (APN), which fosters collaboration and enables the creation of solutions and services for customers. The APN has expanded over time to include various programs. It's worth noting that the APN has over 130,000 partners from 150 countries, with nearly 70% headquartered outside the US. Although large enterprises have greatly benefited from these programs, AWS has recognized small and mid-sized businesses (SMBs) play a significant role in the global economy. As a result, AWS has recently introduced the SMB Competency Program, a strategic initiative designed to empower partners serving SMB customers. After extensive discussions with partners and an in-depth understanding of SMB requirements, AWS unveiled its robust program in January 2024.

AWS SMB Competency Partners provide solutions and services tailored to SMBs' requirements. This covers platform solutions such as migration and modernization, security, data storage, disaster recovery, artificial intelligence/machine learning, and SaaS solutions, including accounting, resource management, customer service, and relationship management. AWS SMB Competency Partners serve as a single source for SMBs who want to use the AWS cloud to solve their specific business problems.

The inaugural iteration of the program comprises 30 partners, spanning services and software with expertise in managed services, security, AI, modernization, migration, disaster recovery, and cloud business applications. These categories have been thoughtfully chosen to align with SMB priorities.

I have personally spoken with each of these 30 partners, and they unanimously endorse and express enthusiasm for the AWS SMB Competency program.

According to Techaisle’s 2024 research data on SMB and Midmarket priorities and challenges, 55% of customers view partner competencies as “absolutely essential” when assessing partner capabilities. In contrast, 36% of customers prioritize certifications in their evaluation. This emphasizes competencies' critical role in demonstrating a partner’s expertise and ability to meet customer needs.

Focused on growth and committed to new solutions that expand business horizons – the SMB market is on the brink of a multi-year growth trajectory.

According to Techaisle research, SMBs and midmarket firms (1 to 5,000 employees) will spend over $650 billion on cloud solutions by 2025. The cloud is no longer just a buzzword; it’s delivering tangible benefits to SMBs. It is both a priority and a current reality, delivering business infrastructure that connects strategy and execution, responding to changing business requirements, changing customer and supplier expectations, volatile competitive pressures, and new opportunities for automation of systems and system-dependent processes and workflows. The journey to the “NextGen cloud” is underway within SMBs. Techaisle’s research shows that SMBs have largely consolidated gains in adopting the cloud and in using the cloud to drive efficiency. Leading members of the SMB community are now investing in next-generation approaches, including marketplaces, cloud-native technologies for modernization, containers, and CI/CD pipeline management, that will enable further application of cloud resources to business needs. Suppliers can establish long-term positions with firms committed to this multi-year journey. AWS has decided to take a pole position in equipping its partners to capture the vast SMB market opportunity.

Empowering Partners and Serving SMBs: The Benefits and Value of the AWS SMB Competency Program

The AWS SMB Competency is the first go-to-market AWS specialization tailored explicitly for partners serving SMBs. Let us dive into what makes this program essential:

Enhanced Benefits and Visibility for Partners:

Partners achieving the SMB Competency gain enhanced benefits. SMB Competency Partners is the go-to standard for participation in new pilots and sales initiatives. This provides them with unique opportunities to collaborate with AWS on cutting-edge projects. In addition, access to demand-generation engines ensures that partners can effectively reach SMB customers. Whether marketing campaigns, lead generation, or customer outreach, the SMB Competency opens doors to scalable resources. Techaisle’s recent 2024 partner research shows that 49% are allocating resources for lead generation, and 63% are building expertise in researching the customer’s business, industry, and past experiences. Partners can build an audience and target accounts utilizing 20M+ global records, leveraging intent and firmographic data and a dedicated microsite with digital assets to enable digital discovery. AWS’ benefits for sales initiatives and demand generation will help partners. Techaisle’s 2024 partner survey data reveals that 46% of partners prefer collaborating with IT suppliers with solid brand awareness. In this context, the AWS program effectively serves both partners and customers.

Rigorously Validated Solutions for SMBs:

To achieve the SMB Competency, partners must demonstrate a successful track record of serving SMB customers. Their offerings undergo rigorous vetting by AWS, ensuring that SMB Competency Partners are well-prepared to address the unique priorities of their SMB clients. For example, to qualify for the program, partners must showcase 50 to 100 unique customer opportunities in the previous two years and provide reference SMB customers and case studies. According to Techaisle research, 74% of SMBs prioritize meticulously architected and validated solutions tailored to their business needs. Becoming a trusted advisor for SMBs with validated solutions within the AWS ecosystem is crucial for partners. SMB Competency Partners specialize in offerings explicitly designed for SMBs. Offerings that have undergone rigorous vetting by AWS to ensure they adhere to the highest quality standards and cater to SMB requirements. These solutions are agile, cost-effective, and aligned with the realities of SMB operations. Whether cloud migration, security, data storage, disaster recovery, or artificial intelligence/machine learning, these partners are equipped to meet SMB needs. 43% of partners and 56% of SMB customers work with partners’ solutions that are easy to deploy, integrate and manage.

From Overlooked to Pivotal: Cloud Empowers SMBs and Reshapes the Channel

IT vendors have employed triangle diagrams to allocate account coverage responsibilities for years.

• Large Accounts: These are the heavyweight contenders – the enterprises with substantial employee counts. They reside at the “top of the triangle,” and the direct sales team takes ownership of them.
• SMBs in the Middle: The sweet spot lies here. These SMBs are smaller than the enterprise giants but still significant enough to pique the vendor’s interest. They fall under the channel’s purview for coverage, development, and often management.
• The Overlooked: Below the bottom line, we find the SMBs deemed too small to merit focused attention.

AWS is focusing on both the middle and the overlooked.

The rise of marketplace sales and cloud alternatives has dramatically reduced the cost of serving SMBs. This cost reduction extends the SMB target market. Vendors have distanced themselves from direct oversight of channel initiatives except for top-tier partners. Instead, distributors have managed market development resources for SMB-focused partners. Cloud solutions have disrupted the channel addressing the SMB market. As-a-service offerings, which are easy to deploy and customize, resonate with buyers seeking specialized solutions. In this dynamic landscape, the channel’s role has evolved, and the SMBs – once overlooked – emerge as a pivotal force. Recognizing this shift, AWS is actively addressing the changing channel dynamics by developing new partner programs, investing in training and enablement for SMB-focused partners, and creating new tools and resources to help partners better serve SMB customers.

Beyond all of the technology-driven change that the channel is adapting to, there is a shift in how SMB customers are acquiring IT solutions. SaaS has shown SMB buyers that they can acquire IT capabilities that map directly to business needs – they no longer need to take on the risk and uncertain time-to-benefit inherent in the purchase, integration, and deployment of building-block technologies. At the same time, IT budget authority is migrating from IT gatekeepers to business managers who view technology as a means to achieve process objectives rather than an end. Both trends affect channel sales and marketing professionals. Within client organizations, the key customers are often non-IT professionals looking for suppliers to respond to business pain points with approaches that directly address the business requirements rather than traditional product-centric ‘some assembly required’ solutions targeted at IT buyers. The ability to talk credibly about business outcomes vs. technology issues has become the key to selling solutions in today’s market. Most vendors lack business-savvy sales staff – the problem is even more acute in channel firms. Cloud start-ups often speak to business rather than IT issues (and clients). AWS is committed to helping partners navigate this shift, offering training and resources to effectively equip them to speak with and sell to business buyers.

Final Techaisle Take

These trends have made it more difficult for partner organizations to maintain predictable operational arcs and for vendors to build and nurture high-performance partner networks. The rise of the SMB market presents a significant opportunity for both AWS and its channel partners. This segment is anxious to expand its IT footprint and is looking for partners to help them address the tension between boundless aspiration and a resource-constrained reality. The Techaisle data shows that a market that has mastered the cloud and is excited by AI will dedicate itself to growth in 2024 – and AWS partners focused on this market will contribute to and profit from this growth. AWS is investing in SMB market penetration in 2024.

The AWS SMB Competency Program is a strategic step towards empowering partners to capture this growing market segment. The program paves the way for continued growth and success in the evolving cloud landscape by equipping the partners with the necessary expertise, resources, and recognition. As SMBs embrace the power of the cloud to address their unique business needs, the AWS SMB Competency Program stands poised to play a pivotal role in fueling their journey and enabling them to thrive in the digital age.

The AWS SMB Competency Program bridges the gap between technology giants and SMBs. By empowering partners to serve this vital segment effectively, AWS contributes to the growth and resilience of SMBs worldwide. So whether you are an SMB seeking a trusted partner or a rising star in the AWS ecosystem, the SMB Competency awaits—unlocking success, one cloud solution at a time. The AWS SMB Competency Program represents a win-win for both partners and SMBs. Partners get valuable benefits such as more rigorous validation that boosts their credibility and resources to develop tailored solutions for SMB needs. SMBs, on the other hand, benefit from a group of pre-qualified AWS partners with the expertise and solutions designed to address their specific business challenges. This program helps both parties reach their objectives – partners can expand their market, and SMBs can accelerate their digital transformation.

Partners and SMBs can get started here