AWS Marketplace taps SA vendors for revenue growth
AWS Marketplace sees huge opportunities in South Africa, and the Amazon Web Services-owned online software, services and data products store is looking to increase the number of local independent software vendors (ISVs) listed on its platform.
As the emerging trend of cloud marketplace buying grows steadily in SA, the US-based multinational cloud computing giant says it is on a mission to help local vendors gain a competitive edge, through its global selling platform, which it says enables them to increase sales by up to 40%.
AWS Marketplace is a curated digital catalogue that organisations across the globe can use to find, buy, deploy and manage third-party software services from over 2 000 listed ISVs, to build agile solutions and run their businesses.
The online portal, which currently has over 325 000 active customers globally, is aimed at making it easier for firms to procure managed services to help solve B2B, B2C and B2E digital transformation roadblocks.
Last week, AWS South Africa held an AWS Start-up Day in Johannesburg, to enable and accelerate growth for start-ups and managed service providers (MSPs).
During the event, Kuda Mlingo, senior category manager at AWS Marketplace, told ITWeb the company has invested heavily in growing its South African business, to enable a community of innovative cloud-based applications.
The company is looking to take advantage of the massive transformation in the adoption of cloud and emerging technologies, propelled by booming data traffic, growth of remote working platforms, and more firms building agile cloud applications to increase revenues.
AWS Marketplace wants to expand the 12 000 products and services available on its platform, by adding more local ISVs that offer professional services across a wide range of categories, including security, business applications, machine learning, DevOps, internet of things and data products, among others.
“There are a lot of investments made by AWS on the African continent because we are seeing there is great potential for growth. South Africa has a solid pipeline of local ISVs and the software developer market is very exciting.
“ISVs recognise that AWS Marketplace is a great path to reaching global markets. We have local ISVs who are listed and we are seeing huge interest from those who want to be listed in the marketplace because they realise that selling only directly to local customers limits their potential. The platform helps grow their businesses locally and internationally,” explained Mlingo.
The selling platform can be used by anyone with an AWS account, such as a buyer (subscriber firm), seller (ISV or MSP), or both.
According to Mlingo, the huge demand for AWS services in SA is influenced by the rapid demand for software developers, amid the increasing growth of new software, cloud and mobile applications.
The software-as-a service market is estimated to reach $381.21 billion at a CAGR of 17.3% by 2030, as organisations increasingly strive to reduce costs and improve operational efficiency and productivity.
In 2017, the Amazon global network expanded to Africa through AWS Direct Connect and, in 2018, AWS launched Amazon CloudFront locations in Johannesburg and Cape Town.
In 2020, Amazon reinforced its commitment to Africa when it launched its Africa (Cape Town) Region, the first AWS Infrastructure Region in Africa.
Mlingo believes the use of cloud computing is no longer optional for businesses − but it’s an essential in SA’s burgeoning cloud market.
“If you look at how businesses are operating, cloud is no longer an option but a necessity for creating a more flexible working environment. A South African customer is now a very educated customer who knows what they want, how they want to consume their products and what consumption model they prefer.
“That's why AWS Marketplace offers a usage pricing consumption model, also known as pay-as-you-go pricing, which enables providers to oﬀer products to customers who only pay for what they use and when they use it,” Mlingo points out.
In September, AWS opened a new office in Johannesburg to support its growing customer demand. It provides a range of services to organisations of all sizes, including start-ups, enterprises and public sector agencies, to help them innovate and accelerate migrations to the cloud.
“There are obviously a lot of investments made by AWS across the African continent. This explains the new offices that opened up here in Johannesburg.
“There are also offices that have been built and expanded in Cape Town, and we have a new office in Nigeria. With time, AWS will be looking at identifying more investment opportunities on the broader continent, and these investments are driven by the increasing demand for our products among African organisations,” concluded Mlingo.