AWS Marketplace Expands SaaS Solutions, Adds RequirementsAWS Marketplace Expands SaaS Solutions, Adds Requirements

AWS will allow any software-as-a-service (SaaS) product to be listed on AWS Marketplace, regardless of the hosting location.

The cloud giant said the move will enable AWS Marketplace to be a single destination for procuring and governing SaaS solutions, regardless of where or how they’re hosted.

From May 1, SaaS partners can list all of their solutions on AWS Marketplace. As part of the changes, AWS will require sellers to run their solutions 100% in its cloud to qualify for AWS Marketplace spend commitments from private pricing agreements and discounts. This way, it said customers will be able to more easily identify solutions built on AWS.

Matt Yanchyshyn, VP of AWS Marketplace and partner services at AWS, said the changes were “natural."

“The whole point of the discount in the first place is to discount a commitment to use AWS services,” he told Channel Futures. “This new policy aims to create a level playing field for partners, ensuring that customers can trust the solutions they purchase through Marketplace are fully hosted and supported on the AWS Cloud.”

While the policy change might impact some partners who don't currently host their solutions entirely on AWS, Yanchyshyn said the overall goal is to expand customer choice and flexibility. The changes will allow more partners to list their solutions on the marketplace, even if they don’t run fully on AWS, as they can forgo the private pricing benefits, he said.

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“This allows customers to now onboard partners and transact a much, much larger percentage of their full usage, regardless of where it’s hosted through Marketplace. They can get those marketplace benefits, like cost management, procurement, governance, in a single bill.”

New AWS Marketplace Badging

To help customers identify which solutions meet the 100% AWS hosting requirement, the hyperscaler will launch a new badging system on May 1. This, said Yanchyshyn, will provide more transparency for customers for security and resilience, and it will qualify against spend commitments.

AWS has already started informing SaaS partners of the changes. While some are excited about the opportunity to differentiate themselves as true AWS-native solution providers, others require more time to migrate their infrastructure.

“We’re getting feedback from other partners that they need time to migrate," said Yanchyshyn. "So, we’re working through each partner scenario: What is on AWS and what is not?”

Importantly, the new policy will not immediately impact existing private pricing agreements.

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“Even though the policy takes effect May 1, the commitment drawdown of the private pricing agreement applies at billing time,” said Yanchyshyn.

AWS Channel Partners, Distribution 'A Natural Extension'

Elsewhere, Yanchyshyn said that traditional resale partners and distribution are an “increasingly important part of our business.”

“It’s natural, especially as we do more public sector business, more international business, in markets … where channel-led is the norm," he said.

“I see the channel as a key partner in helping us to move quickly on this where we need to move quickly. They have better visibility, they have services available, and I see them as a natural extension of my partner team. Especially with how we’ve pivoted to our ‘Marketplace everywhere’ and ‘Buy with AWS’ strategy [where customers can access AWS Marketplace from a partner’s website].”