AWS didn't just grow faster than expected by increasing revenue $2.4Bn in Q2, they added an incredible đ°$10Bn (+8%) to their cloud commits in just 3 months. Here's why every partnerships leader should take note.
đ Why Cloud Commitments are the Game-Changer
Enterprises are signing multi-year commitments with cloud providers to get volume discounts. These aren't small commitments; we're talking multi-million and sometimes billion-dollar contracts for future spending.
And here's the real kicker: these cloud commitments can be used to purchase your (3rd party) SaaS and PaaS via cloud marketplaces, assuming your product is there.
đ The Pulse of AWS's Commits in Q2
Commitments Increased: By $10Bn.
Spending Speed Increased: Time to release dropped from 3.9 to 3.6 years.
These are signs that companies are investing more and accelerating their spending with Amazon Web Services (AWS).
âWe have performance obligations, primarily related to AWS, associated with commitments in customer contracts for future services that have not yet been recognized in our consolidated financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized were $132.1 billion as of June 30, 2023. The weighted-average remaining life of our long-term contracts is 3.6 years.â
đ A Brighter Cloud Horizon
A book of cloud commits isn't just numbers of future revenue, it's the indicator and the overall wellness of cloud business. In the case of AWS, the largest cloud infra provider with ~ 35% of the market, the strong growth of cloud commits indicates a much healthier tech ecosystem than everyone expected.
AWS isn't alone on this journey upwards, other cloud providers are not just recovering but expanding.
Google Cloud is growing at 28% with its second consecutive profitable quarter. It's now at $30Bn annual run rate.
Microsoft Azure has surpassed a $50B annual run rate, also growing in double digits. Microsoft Cloud (includes Azure) grew 26% and also boosted their cloud commits 14% last quarter.
There's a growing consensus that we might be emerging from the tech recession.
đĄ Not Just Stats, Your Opportunity
Growing numbers of cloud commitments are more than just impressive stats; they're an opportunity for tech founders and partnership leaders. Are you seizing it?
If your company isnât partnering with cloud hyperscalers yet, you're missing out on all this committed spend that could help you scale your product.
Getting listed on cloud marketplaces is step one. Then comes identifying your unique value and crafting your irresistible 'better together' story, aligning with ground-level sellers, engaging in co-marketing, co-selling, etc.
__________
đ Accelerate your Growth in Cloud Marketplaces
Transform your marketplace strategy with first-hand insights from Cloud GTM leaders in our 5-week cohort course. Learn in a community of great alliance leaders. Join 100+ alums from companies like GitLab, Darktrace, IDC and others.
ComentĂĄrios