UPDATED 20:00 EST / APRIL 30 2013

AWS Marketplace : Growing Faster Than the Weeds, Good for ISVs

Sajai Krishnan - General Manager Marketplace, AWSHave you ever wanted to build infrastructure for your company on the fly? In essence, not purchasing a specific piece of software or app, but just “turn it on” and rent it for a specific amount of time? Sajai Krishnan, General Manager Marketplace, AWS stopped by theCUBE to chat with hosts Dave Vellante and Jeff Frick at today’s #AWSsummit, where SiliconANGLE is broadcasting live. With pricing by the hour, the AWS Marketplace puts the power of the software in the hands of each individual customer.

Here is a quick breakdown:

  • Customer chooses the appropriate field/software product
  • AWS “bottles it” – one click and implement means people can start using immediately
  • Standard usage agreement
  • Customer uses the software program they need, as long as they need it, no longer

With over 800 types of software listed in 25 different categories, the AWS Marketplace is growing like gangbusters. The value has exceeded even Krishnan’s wildest expectations, as the uptake is tremendous. AWS Marketplace saw 100% growth in its customer base in Q1. Additionally, it saw 50 percent more usage on average by each customer. Lastly, he shared that 95 percent of customers have indicated that they would happily recommend AWS Marketplace to friends or other customers.

Are there any non-software assets in the marketplace? Not yet, they are just learning to walk, he said — however, it is likely to be something we’ll see to some degree soon.

So what is the business model of AWS Marketplace anyways?

$1.00 of software purchased by a user yields 20 percent off the top to AWS, and the other 80 percent to the provider. What this means is that the AWS Marketplace is very friendly to ISV’s. With such a friendly give-take, one might wonder if there are any exclusive AWS Marketplace start-ups. While an interesting thought, Krishnan quickly squashed the idea and said that there are currently no exclusive AWS Marketplace software providers. As you can imagine, software entrepreneurs want to be in as many markets as possible.

The AWS Marketplace is pay-by-the-hour software for the cloud. From software infrastructure to business intelligence, the saturation of software in AWS’s cloud offering is growing like weeds.


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