AWS (or other big tech) partner businesses?

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August 21, 2020

by a searcher from The University of Chicago - Booth School of Business in Auckland, New Zealand

Does anyone have research or experience evaluating AWS partner network companies? Or more generally, research on big-tech-aligned service providers?

Looks like some good roll up candidates with recurring lines, but many seem tied to the graces of AWS to keep paying them commissions etc.

https://aws.amazon.com/partners/

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Reply by a searcher
from University of Dallas in Houston, TX, USA
My company, Zibtek has 65% of our clients on aws. We are technically in the AWS partner network but we are generally declining the direct work they send us. They often want us to work for free to "prove a concept" before the work is engaged. We generally decline to do so. The result is depressed margins for that work and generally less than ideal clients as they are not self selecting the right providers. My experience interfacing with sales force partners and the work with them has been similar. Doesn't mean they are bad businesses but we are not keen on that work despite using those tools heavily.
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Reply by a searcher
from University of Exeter in Arlington, VA, USA
AWS is awesome and a great partner for a fund, as well as - in my case - the investment manager. They're not a platform for a roll-up. Having said that, 40% growth yoy and 40% operating margins allows for plenty of margin growth at the operating company level. And room for error. Just don't go advertising that you're doing a roll-up!
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