What Are the Most Common Challenges Faced by AWS Select Partners?

1. Meeting Certification and Training Requirements

One of the key challenges for AWS Select Partners is meeting and maintaining the required AWS certifications. These certifications are crucial for validating your team’s expertise in AWS services and are a prerequisite for advancing to higher partner tiers.

Challenges

• Certification Costs: AWS certifications require significant investment in both time and money. For small and medium-sized businesses, these costs can be a considerable burden.

• Keeping Up with AWS Updates: AWS frequently updates its services and introduces new ones, requiring ongoing education and re-certification to stay current.

Strategy to Overcome

• Leverage AWS Training Discounts: As a Select Partner, you’re eligible for discounts on AWS training. Utilize these discounts to reduce the cost of upskilling your team.

• Create a Certification Plan: Develop a structured certification plan that prioritizes the most critical certifications for your business. Ensure that your team is continuously learning and staying updated with the latest AWS advancements.

2. Generating Sufficient AWS Revenue

Another significant challenge for AWS Select Partners is meeting the revenue requirements needed to maintain their status or advance to higher tiers. AWS expects its partners to generate a certain level of AWS-related revenue, which can be challenging, especially for newer or smaller companies.

Challenges

• Competition: The cloud services market is highly competitive, making it difficult to win new business and grow your AWS-related revenue.

• Customer Acquisition Costs: Attracting new customers and converting them to AWS services can be expensive, affecting your overall profitability.

Strategy to Overcome

• Target Niche Markets: Focus on niche markets where you can offer specialized AWS solutions that meet specific customer needs. This can help you stand out from the competition and generate more revenue.

• Leverage AWS Funding Programs: AWS offers various funding programs to help partners build Proof of Concepts (POCs) and drive customer adoption. Utilize these programs to reduce customer acquisition costs and accelerate revenue generation.

3. Building and Maintaining Customer References

AWS Select Partners are required to provide customer references as proof of their ability to deliver successful AWS solutions. However, obtaining and maintaining these references can be a significant challenge.

Challenges

• Securing Willing Customers: Not all customers are willing to be references, especially if they operate in competitive industries or have strict confidentiality requirements.

• Ensuring High Customer Satisfaction: Maintaining a high level of customer satisfaction is critical to obtaining positive references, but it can be challenging, especially as your business scales.

Strategy to Overcome

• Focus on Customer Success: Make customer success a top priority by delivering exceptional service and value. This will increase the likelihood of customers agreeing to be references.

• Use Case Studies: Develop detailed case studies that highlight your successes with AWS. These can serve as an alternative to traditional references and demonstrate your expertise to potential clients.

4. Navigating AWS Partner Competency Programs

As an AWS Select Partner, you may aspire to achieve AWS Competencies, which are designations that recognize your company’s expertise in specific solution areas. However, navigating the competency programs can be complex and demanding.

Challenges

• Stringent Requirements: AWS Competencies require a high level of expertise, customer success stories, and third-party audits, making them difficult to achieve.

• Resource Allocation: Working towards an AWS Competency can be resource-intensive, requiring significant investment in both time and money.

Strategy to Overcome

• Start with Core Competencies: Focus on achieving core AWS Competencies that align with your business strengths. This will make the process more manageable and provide a strong foundation for pursuing additional competencies in the future.

• Leverage AWS Support: AWS offers support to partners working towards competencies, including guidance from Partner Development Managers (PDMs). Take advantage of this support to streamline the process and ensure you meet all requirements.

5. Balancing Cost Management with Service Quality

Cost management is a critical challenge for AWS Select Partners, particularly when trying to balance it with maintaining high service quality. As you grow your business, managing costs while delivering top-notch AWS solutions becomes increasingly complex.

Challenges

• Managing AWS Costs: The costs associated with using AWS services can quickly add up, especially if you’re not optimizing your usage.

• Maintaining Profit Margins: As you invest in certifications, customer acquisition, and AWS services, maintaining healthy profit margins can be difficult.

Strategy to Overcome

• Optimize AWS Usage: Use AWS cost management tools such as AWS Cost Explorer and AWS Budgets to monitor your usage and identify areas where you can reduce costs. Implement cost-saving measures like reserved instances and auto-scaling to improve efficiency.

• Value-Based Pricing: Consider adopting a value-based pricing model that emphasizes the unique value you provide to customers rather than just competing on price. This can help you maintain healthy profit margins while delivering high-quality services.

6. Managing Partner Relationship with AWS

As an AWS Select Partner, maintaining a strong relationship with AWS is essential for your success. However, navigating the complexities of this relationship can be challenging, especially as you work to align your business goals with AWS’s expectations.

Challenges

• Understanding AWS Expectations: AWS has high expectations for its Select Partners, including meeting revenue targets, maintaining certifications, and delivering high customer satisfaction. Understanding and meeting these expectations can be challenging.

• Accessing AWS Resources: While AWS offers various resources to its partners, accessing and leveraging these resources effectively can be difficult, especially if you’re not familiar with the APN’s inner workings.

Strategy to Overcome

• Regular Communication with AWS: Maintain regular communication with your AWS Partner Development Manager (PDM) to stay informed about AWS’s expectations and how you can meet them. This will help you align your business goals with AWS’s objectives.

• Participate in AWS Partner Programs: Take advantage of AWS Partner Programs, such as the AWS Partner Acceleration Program, to gain access to resources, training, and support that can help you grow your business and strengthen your relationship with AWS.

Conclusion

Becoming an AWS Select Partner is a significant achievement, but it comes with its own set of challenges. From meeting certification requirements and generating revenue to managing customer relationships and balancing costs, AWS Select Partners must navigate a complex landscape to succeed.

By understanding these challenges and implementing the strategies outlined in this article, your company can not only overcome these hurdles but also thrive as an AWS Select Partner. Whether you’re looking to maintain your current status or advance to higher tiers, a proactive approach to these challenges will position your business for long-term success in the cloud services market.

At Adiantara, we understand the unique challenges faced by AWS Select Partners. Our team of experts is here to help you navigate the complexities of the AWS Partner Network, from meeting certification requirements to optimizing your AWS usage. Contact us today to learn how we can support your journey as an AWS Partner.