aws business case

Managed services have historically been tied to infrastructure, but next-generation MSPs are involved at a much deeper level on the Amazon Web Services (AWS) Cloud. MSP relationships work because if one company plans and designs a customer’s workloads, while another company builds it, and a third company operates it, you lose that synergy and ability to make connections from one phase to another. The MSP is capable of owning that work holistically and provides expertise across the full lifecycle of services. Or, explore how leading cloud innovators such as Netflix and GE build on AWS. By Barbara Kessler, Global MSP Programs Lead at AWS. Strategically, AWS MSPs manage cost and buying strategies and ensure customers are paying for the right type of services. Migration Evaluator discovers where on-premises instances are overprovisioned and where alternate AWS placements can meet or exceed those requirements at a lower cost. AWS Partners help businesses around the world to transform and innovate. All rights reserved.

Millions of customers—including the fastest-growing startups, largest enterprises, and leading government agencies—are using AWS to lower costs, become more agile, and innovate faster. Forrester’s analysis found that APN Partners had success selling next-gen managed services following successful migration engagements, with several APN Consulting Partners indicating they saw attach rates as high as 60 to 80 percent across their entire managed services portfolio. We give MSP Partners a detailed framework of best practices for succeeding as a next-gen MSP, and APN Partners that have embraced these best practices have been able to build profitable, sustainable businesses.

Forrester’s interviews found that successful next-next MSPs delivered a combination of professional and managed services, including resale and business support services, as well as complementary third-party application sales and value-add IP sales. As seen in Figure 2, by Year 3 of the analysis, the composite MSP Partner saw practice-wide gross margins of 51 percent and operating margins of 36 percent. Start building your business case with Migration Evaluator. Click here to return to Amazon Web Services homepage, AWS Managed Service Provider Partner Program, Check out the AWS MSP Partner Program website, Review the AWS MSP Partner Program Validation Checklist, MSP Program information on APN Partner Central. As a result, traditional MSPs, whose legacy business was focused primarily on managing hardware and delivering on-premises solutions, are rapidly shifting their business models and acquiring new skill sets and proficiencies to meet customers’ sophisticated business requirements. Engage in partner-to-partner collaboration and joint go-to-market initiatives to expand the value proposition. This can include conversations about what, how, and when they want to move to the AWS Cloud.
Capital One is reducing its data-center footprint and expanding use of microservices to reimagine banking using AWS. The program aligns customers with a set of validated next-gen APN Partners who can deliver the full experience of plan/design >> build/migrate >> run/operate >> optimize. Lastly, the MSP audit process is designed to be a consultative engagement for the benefit of the MSP Partner. We’re not just raising the bar for next-gen MSP Partners—we’re helping them get there. Creating business cases on your own can be a time-consuming process and does not always identify the most cost-effective deployment and purchasing options. By migrating to AWS, The Coca-Cola Company achieves a 40 percent operational savings. Furthermore, these managed services offerings provided APN Consulting Partners with sticky, high-margin annuity revenue streams. Netflix uses AWS for nearly all its computing and storage needs, including analytics, recommendation engines, video transcoding, and more. Forrester found that APN Consulting Partners built, packaged, and sold robust portfolios of next-gen AWS managed services at a variety of price points and service levels to meet the diverse and sophisticated workload management and optimization needs of today’s technology buyers. Glossier builds point-of-sale system on AWS to seamlessly merge online and in-store customer experiences.

F1 uses Amazon SageMaker to build machine learning models that help fans better understand the split-second decisions made by a driver or pit crew. While APN Partners varied significantly in the specific third-party software brands they resold, Forrester’s interviews revealed that next-gen MSPs could attach several common solutions to AWS deals, including security monitoring, alerting, and management; cloud cost management; and data management, analytics, and data visualization applications.


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