This will also feature a new product known as Buy with AWS, designed to facilitate streamlined purchase from customers for the cloud software vendors making use of the AWS infrastructure. It is one such product announced on 4th December, 2024 at AWS’s reinvent conference in Las Vegas, by allowing the insertion of the button on websites through which a user makes his or her purchases using his or her AWS credentials. This streamlines the buying process, makes discounts previously negotiated available to buyers, and encourages transactions directly through their AWS accounts.
The new offering is a sequel to the Buy with Prime button that Amazon rolled out in 2022, allowing Amazon Prime members to shop on third-party websites using their Amazon account. While Buy with Prime charges merchants a fee for wanting to include it on their site, the Buy with AWS button is free for software companies to add. The aim is to increase customer and partner loyalty along with more revenues coming from its marketplace by these wider moves by AWS.
Amazon’s cloud infrastructure is the largest player in the market, accounting for more than $100 billion annually, while competitors Microsoft and Google have lagged behind. A new “Buy with AWS” button will only cement its market dominance, allowing it to easily sell the popular cloud software of its current vendors such as Databricks, Wiz, and Workday.
This is a seamless buy experience for buyers; they can go through a complete transaction without leaving the AWS environment. According to the vice president of AWS Matt Yanchyshyn, this initiative will create higher customer retention and partner success, eventually increasing AWS’s share in the cloud software buy. Lower fees on transactions also await the sellers on the AWS marketplace, Amazon having recently decreased its fee levels to as low as 3% in certain cases.
For Databricks and Workday, for example, the button will streamline procurement, hence increasing their speed of deploying their services on AWS and, potentially on AWS adoption for their software solution. Workday, for example, is testing the button on its Adaptive Planning product, hoping to accelerate procurement of software for business users.
Industry analysts predict that other cloud providers will, over time, introduce similar features as these acknowledge the opportunity benefits of the streamlined purchase model for software vendors and cloud customers alike.