Following the success of its Buy with Prime feature, Amazon is bringing a similar concept to its cloud computing arm, Amazon Web Services (AWS). At its annual Reinvent conference in Las Vegas, AWS announced the launch of a new Buy with AWS button, designed to streamline how cloud software partners sell their services directly to customers.
Enhancing the AWS Ecosystem
The Buy with AWS button allows cloud software vendors, including companies like Databricks, Wiz, and Workday, to embed a payment option on their websites for users with AWS accounts. This feature simplifies the purchase process, enabling customers to apply existing AWS Marketplace discounts while transacting directly on vendor sites. Unlike Buy with Prime, which charges retailers a fee, the Buy with AWS button is free for software companies to integrate. Purchases generate revenue for Amazon as the services run on AWS infrastructure.
AWS, the market leader in cloud computing, has generated over $100 billion in revenue in the past year, surpassing competitors Microsoft and Google. Matt Yanchyshyn, AWS’ Vice President of Marketplace and Partner Services, emphasized the button’s role in fostering customer and partner loyalty while boosting win rates. “The intention here is to increase customer loyalty and partner loyalty and, ultimately, win rates,” Yanchyshyn said.
A Strategic Advantage for Vendors
For software companies, the only prerequisite for using the button is that their products must be listed on the AWS Marketplace. This year, Amazon reduced Marketplace fees to as low as 3% in some cases to remain competitive after Microsoft and Google lowered their rates. The simplicity of Buy with AWS could give the platform an edge over competing cloud providers.
David Meyer, Senior Vice President of Product Management at Databricks, highlighted how the button could accelerate customer adoption on AWS. “We should really see an acceleration of people that go and use it on AWS because it’s so easy,” Meyer said. He noted that this feature could position AWS as a simpler, more attractive option for Databricks customers, much like Microsoft Azure has been for the company.
Workday is also integrating the button for its Adaptive Planning product, acquired through the $1.5 billion purchase of Adaptive Insights in 2018. Matthew Brandt, Workday’s Senior Vice President of Global Partners, explained that the company aims to evaluate whether the button accelerates procurement. “Can we get software in the hands of business users faster with this? That’s the theory we’re testing,” Brandt said. If successful, Workday plans to expand its use of the button across additional products.
Competitive Implications
The introduction of Buy with AWS reflects Amazon’s broader strategy to deepen integration within its ecosystem and simplify the purchasing journey for cloud customers. Yanchyshyn noted that AWS’ new leader, Matt Garman, is prioritizing partners as a central focus. “It’s not lip service. He means it,” Yanchyshyn said.
This approach could influence other cloud providers to adopt similar strategies. Gartner Vice President Ed Anderson remarked that introducing buy buttons for third-party websites could become a standard practice in the cloud industry. “It’s generally all upside,” he said, pointing to the potential benefits for vendors and users alike.
A Proven Concept Inspired by “Buy with Prime”
The Buy with AWS initiative draws inspiration from Amazon’s successful Buy with Prime feature, introduced in 2022. Buy with Prime allows Amazon’s 180 million U.S.-based Prime members to shop on third-party websites using their Amazon accounts. The feature, which charges retailers a fee to leverage Amazon’s fulfillment network, saw a 45% increase in orders in 2023 compared to the previous year.
While Buy with Prime focuses on physical goods, Buy with AWS targets cloud software, a sector critical to Amazon’s long-term growth. Yanchyshyn noted the differences between the two initiatives, describing them as separate use cases that share technical synergies. “We definitely sort of trade notes on success,” he said.
The Future of Simplified Cloud Commerce
As AWS expands its ecosystem with tools like the Buy with AWS button, the company is aiming to provide its partners and customers with a more integrated and efficient experience. By enabling seamless transactions and promoting loyalty, AWS strengthens its position as a leader in the cloud computing industry. For vendors like Databricks and Workday, the button represents a new way to attract users and enhance customer engagement, potentially reshaping how software is sold in the cloud.
