At the AWS re:Invent conference in Las Vegas on December 3, 2024, Amazon Web Services (AWS) CEO Matt Garman announced a significant innovation in cloud computing. Building on the success of the Buy with Prime button for e-commerce, AWS unveiled the Buy with AWS button, a new feature designed to streamline the purchasing process for cloud software on partner websites.  

In 2022, Amazon pioneered a new shopping experience with the introduction of the Buy with Prime button, enabling Amazon Prime members to make purchases using their Amazon credentials on external websites. This year, AWS is applying a similar concept to its cloud services, aiming to enhance the customer experience and bolster partnerships within the cloud ecosystem.

AWS, which leads the cloud infrastructure market ahead of Microsoft and Google, has generated over $100 billion in revenue in the past four quarters. Renowned cloud software vendors such as Databricks, Wiz, and Workday operate their solutions on AWS, in addition to other cloud platforms. With the introduction of the Buy with AWS button, these partners can now offer their services directly to AWS account holders through a simple checkout process, leveraging pre-negotiated discounts.

Matt Yanchyshyn, AWS' Vice President of Marketplace and Partner Services, explained the strategy behind the new button in an interview: "Our goal is to strengthen customer and partner loyalty and, ultimately, improve our win rates." For software companies to participate, they must list their products on the AWS Marketplace. AWS has reduced its fees to 3% or less in some instances this year, following similar moves by Microsoft and Google.

On the consumer side, Amazon boasts an estimated 180 million Prime subscribers in the U.S., offering benefits such as expedited shipping, two-hour grocery delivery, and digital services like Prime Video and Amazon Music for an annual fee of $139. Retailers can tap into this vast customer base by paying a fee to integrate the Buy with Prime button on their sites and utilize Amazon's fulfillment network for orders placed through the button. Amazon reported in September that orders through Buy with Prime on merchant sites have increased by over 45% this year compared to the previous year.

The Buy with AWS button differs from its e-commerce counterpart in one key aspect: it is offered free of charge for software companies to embed on their sites. Since the services are hosted on AWS, this approach generates additional revenue for Amazon. Yanchyshyn noted, "While Buy with Prime is a separate initiative, we work closely with that team and collaborate on technical implementation. Although we share insights on our successes, Buy with AWS addresses a very different use case." He also mentioned that Matt Garman, who was appointed to lead AWS earlier this year, is focused on making partners central to the customer journey, emphasizing that this is not just a slogan but a genuine commitment.

Databricks, a data analytics software startup, has enjoyed seamless integration with Microsoft's cloud since the launch of Azure Databricks in 2018. However, setting up Databricks on AWS has been more complex, according to David Meyer, Senior Vice President of Product Management at Databricks. The introduction of the Buy with AWS button is expected to increase the revenue share from Amazon deployments, as it simplifies the process for users. Meyer stated, "We anticipate a significant increase in the number of users opting to deploy on AWS because of the ease of use. This move could give AWS an advantage over other clouds, as it will be simpler, much like Azure has historically been for Databricks."

Workday, a provider of finance and human resources software, plans to implement the Buy with AWS button on its Adaptive Planning product, following its $1.5 billion acquisition of Adaptive Insights in 2018. The company is interested in determining whether the procurement process will be faster when buyers use the button and go through the AWS Marketplace.

Matthew Brandt, Workday's Senior Vice President of Global Partners, said, "The theory we're testing with this feature is whether we can get software into the hands of business users more quickly." Brandt mentioned that if the evaluation is successful, Workday may extend the use of the button to more of its products, as it helps validate Workday as a potential provider for buyers who are familiar with AWS but not necessarily with Workday.

Ed Anderson, a Vice President at industry research firm Gartner, expressed that it would not be surprising to see other cloud providers introduce buy buttons for third-party websites, stating, "It's generally all upside."

The introduction of the Buy with AWS button signifies a strategic move by AWS to further solidify its position in the cloud market, enhance the customer experience, and foster stronger partnerships. This innovative approach is expected to drive increased adoption of AWS services and contribute to the ongoing growth of the cloud computing industry.