Microsoft, AWS cloud deals may reshape enterprise software ecosystem - Business Insider

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Through Microsoft Azure and AWS' partnership model, cloud providers capture lucrative cloud hosting contracts

The Wall Street Journal. The practice has the potential to reshape the enterprise software industry—Big Cloud providers would become gatekeepers to the enterprise ecosystem, making it difficult for software providers to scale independently.Business Insider Intelligence

Through this partnership model, smaller enterprise software providers expand their distribution, and the cloud providers capture lucrative cloud hosting contracts. In January, for example, Amazon agreed to distribute software from Apptio Inc. to AWS customers, and Apptio Inc. in turn agreed to expand its AWS footprint.

Amazon helped pioneer this general practice, borne out of the AWS Connections service that offers enterprise software providers a means of selling to the AWS customer base. Since 2019, AWS Connections has arranged approximately 2,000 meetings connecting enterprise startups with AWS cloud customers, according to The Journal. Microsoft only adopted the practice in September, when it enticed email security firm Abnormal Security Corp.

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