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Over the last two years, Amazon Web Services (AWS) partners working with distributors in the public sector saw impressive growth:

• 133% increase in transacting partners

• 155% growth in customers

• 166% boost in revenue

"Distributors have been a key part of our go-to-market program for partners that are not able to have a direct relationship with AWS, or partners that do have a direct relationship with AWS need access to things that they just can't develop on their own” - explained Rishi Bhaskar, AWS Director of Public Sector Partner Sales at reInvent 24.

What drives this synergy?

Distributors solve key challenges that prevent many software companies and smaller partners from taking advantage of AWS and marketplace opportunities.

They handle complex contracting, provide back-office support, and manage billing - removing major barriers to entry.

Their value-add also includes unified procurement combining cloud and traditional IT, technical expertise and go-to-market support.

Ingram Micro: A Case Study on Evolving Distributors

As AWS Distributor of the Year (2023, 2024), Ingram showcases how distributors are adapting to cloud marketplace dynamics.

Ingram highlights studies that >40% of software buyers today have committed spend agreements with hyperscalers - key reasons for customers to use marketplaces.

Ingram support for partners and ISVs spans all 3 key stages:

1️⃣ Build

Helping partners establish AWS foundations and optimize marketplace presence. It assists in navigating the AWS Partner Network (APN) and helps to scale and optimize tech solutions on the AWS Marketplace.

2️⃣ Market

Running co-branded campaigns, demand generation in AWS marketplace/ecosystem. partner portals help streamline the sales process and drive lead generation.

3️⃣ Co-Sell

Providing strategic marketplace guidance, stakeholder connections for ISVs and channel partners, and professional services to drive marketplace revenue.

Ingram's platform integration with AWS now automates everything from listings to private offers. Ingram has 160K solution provider customers.

The impact?

Distributors bridge traditional IT procurement with cloud marketplaces. They provide essential capabilities that accelerate partner traction and cloud sales— rather than being displaced by marketplaces, they are evolving to amplify them.

This explains why AWS considers distributors strategic in accelerating partnerships and achieving marketplace traction.

Research indicates that on average AWS Marketplace helps partners close deals 50% faster while delivering a 234% ROI for those investing in marketplace presence.