Title

AWS re:Invent 2023 - Accelerate your AWS growth with small and medium business customers (PEX112)

Summary

AWS defines SMBs as companies with gross annual revenues up to $100 million, with some country-specific variations.
The SMB market is significant, with 235 million businesses worldwide, representing over 98% of all businesses and 45% of global GDP.
AWS segments SMBs into large SMBs (30-100 million in revenue) and core SMBs, further divided into builder and buyer personas.
Market trends show increasing IT spend among SMBs, with a forecasted rise to $477 billion by 2027.
Key workload trends include a shift towards SaaS, a focus on security, and interest in AI/ML and generative AI.
Six best practices for partners include scalable demand generation, packaged offerings with predictable pricing, business outcome-driven sales, differentiation, land and expand strategy, and leveraging partner networks.
AWS has launched the Customer Engagement Incentive (CEI) to support partners in acquiring new AWS customers.
AWS provides a sales and marketing guide and encourages partners to add SMB-focused offerings through the APN.

The SMB market is a significant growth opportunity for AWS partners, with a large number of potential customers and a substantial portion of global economic activity.
AWS's definition of SMBs is based on revenue, which may differ from other common definitions that consider factors like employee count.
The segmentation of SMBs into large, core builder, and core buyer personas allows for tailored partner strategies and offerings.
Despite economic downturns, SMBs are still planning to increase IT spending, indicating resilience and a willingness to invest in technology.
SaaS adoption is high among SMBs, suggesting a strong market for ISV partners and service providers who can integrate and secure multiple SaaS applications.
Security is a top concern for SMBs, with a significant number experiencing cyber attacks, highlighting the need for robust security solutions and services.
The interest in AI/ML among SMBs presents opportunities for partners to offer advanced technology solutions even if SMBs do not use them directly in their operations.
AWS's Customer Engagement Incentive (CEI) is a proactive step to share the risk and cost of customer acquisition with partners, encouraging them to invest in demand generation and customer engagement.
AWS's sales and marketing guide and the push for partners to list SMB-focused offerings on the APN demonstrate AWS's commitment to supporting partners in targeting the SMB segment.