Amazon introduces "Buy with AWS" button to simplify software vendor sales to its cloud customers.

• Software companies can now add a Buy with AWS button to their websites, which is being introduced by Amazon Web Services.
• The button simplifies the process of purchasing third-party cloud software with AWS credentials.
• Two years after Amazon introduced the Buy with Prime button for retailers, the rollout is now available.

In 2022, Amazon introduced the Buy with Prime button, enabling premium subscribers to make purchases on other websites using their Amazon account.

Now the company is bringing a similar concept to its cloud-computing business.

Web Services announced at its Reinvent conference in Las Vegas on Wednesday that a new "Buy with AWS" button will be available for cloud software partners to embed on their sites, allowing customers to pay for cloud services.

AWS is the leading cloud infrastructure provider, generating over $100 billion in revenue in the past four quarters. Notable cloud software vendors such as Databricks, Wiz, and run their products on top of AWS, as well as other clouds. Now, these vendors can sell their services directly to users with AWS accounts through a new button, which will allow buyers to take advantage of Amazon discounts during the checkout process.

Matt Yanchyshyn, AWS' vice president of marketplace and partner services, stated in an interview with CNBC that the goal is to enhance customer and partner loyalty in order to boost win rates.

To be eligible for software companies, they must sell their products through the AWS Marketplace. This year, Amazon reduced fees to 3% or lower in certain instances, following in the footsteps of Microsoft and Google who also decreased their rates.

In the U.S., Amazon has approximately 180 million Prime subscribers, who enjoy benefits such as speedy shipping, two-hour grocery delivery, and access to digital services like Prime Video and Amazon Music for an annual subscription fee of $139.

To benefit from Prime's extensive customer base, retailers can pay a fee to include the Buy with Prime button on their website and utilize Amazon's fulfillment network when purchases are made through the button. According to Amazon, sales of Buy with Prime orders through merchants' sites have increased by over 45% this year compared to the previous year.

Embedding with AWS has one key difference: it's free for software companies. This is because the services are hosted on AWS, which results in more revenue for Amazon.

"Yanchyshyn stated that although "Buy with Prime is a separate initiative," the team is closely collaborating with them on technical implementation. He emphasized that while they exchange success notes, "Buy with AWS is a very different use case.""

Matt Garman, who was appointed to lead AWS earlier this year, is concentrating on making partners pivotal in the customer experience.

Yanchyshyn stated that it was not mere lip service; he genuinely meant it.

Since 2018, Microsoft's cloud has seamlessly integrated with Databricks, a data analytics software startup. However, setting up Databricks on AWS has been more complex, according to David Meyer, senior vice president of product management at the company.

He stated that deploying on AWS should result in a greater percentage of revenue from Amazon.

"Acceleration of people using AWS is necessary because it's easy to use," Meyer stated. "This will give AWS an advantage over other clouds, as it will be simpler than the others, similar to how Azure was simpler for Databricks historically."

Workday plans to implement the button on its Adaptive Planning product, which was acquired for $1.5 billion in 2018, to assess the impact of using the button and going through the AWS Marketplace on procurement speed. The company offers finance and human resources software.

Matthew Brandt, Workday's senior vice president of global partners, stated, "Our theory is that we can quicken the delivery of software to business users with this capability. Is that correct?"

If the evaluation is successful, Brandt stated that Workday could utilize the button for additional products.

""Our unfamiliar buyers are very familiar with AWS, which validates Workday as a potential provider," he said."

Gartner Vice President Ed Anderson stated that he wouldn't be surprised if other cloud providers introduced buy buttons for third-party websites.

"It's generally all upside," he said.

Eric Sheridan of Goldman Sachs reports that the cloud computing environment is in good condition.