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2 » (AWS) has been a leader in the space especially in the IaaS & PaaS segments. It has been the pioneer by having the vision to Overview invest in cloud industry ahead of its peers » This report tries to dig further into AWS, its offerings, its benefits compared to traditional on-premise infrastructure and about its various partners

» AWS is leading in the fastest growing IaaS segment followed by , IBM, , Alibaba & SAP Competitor » leads the PaaS segment closely followed by AWS & Oracle. Other players include Microsoft, IBM, SAP, ServiceNow, Alibaba Landscape » Overall, largest competing cloud companies include Microsoft, AWS & IBM, followed by Salesforce, Oracle, SAP & Google

» It has a plethora of offerings ranging from compute services, storage services, database, networking & content delivery, migration, developer tools, management tools, security, analytics, artificial intelligence, messaging, mobile service, application service, IoT, machine learning & gaming development Offerings & » AWS has launched 1000+ features year on year and become the fastest enterprise IT vendor to hit the 10Bn run-rate Programs » The most used services include Amazon EC2, Amazon S3, Amazon Data Transfer, Amazon SQS, Amazon RDS & Amazon Route 53 » There are 2 programs: Consulting & Technology Partner Program; with sub-programs within each of the two divisions basis partner specialties

» Based on program type, 48% are consulting partners & remaining 52% are technology partners » Based on vertical landscape, 60% of the partner are from software & industry, 15% from business and consumer services, another 5% each from government, financial services, telecommunication and rest from others Partners » Based on geography, 75% of the partners are from US, 7% from UK, 5% from Canada and rest from others » There are 74 premier consulting partners, of which pure-play AWS service providers include Megazone, 2nd Watch, Logicworks, DLT, Onica, to name a few » Some multi platform, premier AWS service partners include TCS, DXC, Wipro, Accenture, Capgemini, Cognizant, HCL, NRI, Booz Allen, Rackspace, to name a few

» Deals have started to pick-up with over 30 deals in the past 24 months; activity is similar to what was seen in the application layer cloud services companies 5-6 years Deal back; strategics are making moves faster compared to Salesforce ecosystems as now they are more clear about the longevity & impact of cloud technologies Activity » Multiples have generally ranged around 4x-6x net revenue; which are higher than seen by Salesforce/Workday partners potentially due to recurring nature of business » Some big PE roll up plays acquiring aggressively include Reliam, 2nd Watch, Apps Associate, Onica, Logicworks, to name a few

3 Section 1: Amazon Web Services Overview 5

Section 2: Industry Landscape 12

Section 3: Why use AWS? 19

Section 4: AWS Offerings 22

Section 5: AWS Partner Programs 26

Section 6: AWS Tiers & Certifications 30

Section 7: AWS Partner Analysis 33

Section 8: Deal Activity 40

AWS Re-Invent 2018 Update 45

4 Section 1: Amazon Web Services Overview » In 2006, Amazon Web Services (AWS) began offering IT infrastructure services to businesses in the GLOBAL NETWORK OF REGIONS & EDGE LOCATIONS form of web services—now commonly known as cloud computing

» AWS offers a broad set of global cloud-based products including compute, storage, databases, analytics, networking, mobile, developer tools, management tools, IoT, security and enterprise applications

» These services help organizations move faster, lower IT costs, and scale. AWS is trusted by the largest enterprises and the hottest start-ups to power a wide variety of workloads including: web and mobile applications, data processing and warehousing, storage, archive, and many others

» Today, Amazon Web Services provides a highly reliable, scalable, low-cost infrastructure platform in the cloud that powers hundreds of thousands of businesses in 190 countries around the world

NO. OF SERVICES LAUNCHED PER YEAR 1,430

1Mn Active Amazon S3 peaks 1,000 Customers per at millions of month requests per second 722

516 Infrastructure Region 280 160 80 Edge Point Of Presence (PoP)

2011 2012 2013 2014 2015 2016 2017

Source: AWS Website 6 » RDS Reserved Database

» Amazon DB Instance » RDS Read Replicas » Elastic BlockStore » Amazon Flexible » Lower Outbound Transfer » Amazon » Public Data Sets Pricing SQS payment service » Amazon Glacier launched » EC2 SLA » S3 Versioning feature » Amazon Red-shift launched » EC2 in Europe » S3 in Europe » EC2 High Memory Instance » Amazon » AWS launched in Sydney, » S3 Tiered Pricing » RDS Multi-availability Zone Mechanical Australia » S3 Reduced Redundancy Turk

2005 2006 2007 2008 2009 2010 2011 2012

» AWS Elastic Beanstalk » AWS Multi-factor Authentication » Amazon CloudFront » Amazon Single Email Service » AWS Management Console » EC2 Elastic » AWS launched in Tokyo, Japan » Amazon EC2 » AWS Economics Center » Window Server, » Amazon Route 53 » AWS Security Center MySQL, Oracle & » Digital`Ocean launched » Amazon S3 » EC2 Reserved Instances Jboss » AWS Direct Connect » Simple DB Features » Lower data and » AWS Gov-Cloud » Developer Portal » Amazon RDS Transfer cost » AWS launched in Oregon, third & Forums » Amazon VPC region in US » Amazon Elastic Map Reduce » AWS Import/Export Source: AWS Website 7 » AWS is awarded an ATO » AWS Machine Learning » AWS i3 instances launched which from US Dept. HHS Platform launched are 50% cheaper than i2 instances » AWS Activate launched » AWS acquires ClusterK » AWS surpasses $10 billion revenue » EC2 G2 Instances » AWS becomes a leader in target with over 100 services launched for 3D Design IaaS solution » AWS EC2 CSd instances launch » Amazon Kinesis launch » AWS Snowball launched » Amazon Chime launched » AWS launched in China

2013 2014 2015 2016 2017 2018

» AWS launch in Frankfurt, » AWS Machine Learning » AWS EC2 support for Red Hat Germany Platform launched BYOL launched » Amazon Aurora launch » AWS acquires ClusterK » Amazon Cloudwatch Metric » EC2 Container Service » AWS becomes a leader in Maths launched for real-time launched IaaS solution analytics » AWS Lamda launched » AWS Snowball launched » AWS EdStart global launched

Source: AWS Website 8 Figures in $Bn 2013 2014 2015 2016 2017 Overall Revenues 74.5 89.0 107.0 136.0 177.9 AWS Revenues 3.1 4.6 7.9 12.2 17.5 % Growth Rate 69% 49% 70% 55% 43% Operating Expenses 2.4 4.0 6.0 9.1 13.1 Operating Income 0.7 0.7 1.9 3.1 4.3 Sales-Contribution 4% 5% 7% 9% 10% Operating Margin 22% 14% 24% 25% 25%

AWS FINANCIALS COMMENTS Figures in $Bn

20.0 12% 17.5 » AWS revenue contribution has increased from 4% to 10% 9% 10% between 2013-2017 and is poised to grow further 15.0 7% 12.2 8% » AWS remains the profit engine for Amazon, which has always 10.0 5% 7.9 operated on thin e-commerce margins. The unit’s operating 4% 4% income of $4.3Bn, while the company as a whole had 4.6 4.3 5.0 3.1 3.1 operating profit of just $347Mn 1.9 0.7 0.7 0.0 0% » Even after series of price reduction on their product their 2013 2014 2015 2016 2017 operating margin stay healthy at ~25% AWS Revenue Operating Income Sales-Contribution

Source: AWS Website 9 COMPANIES BY GEOGRAPHY COMPANIES BY EMPLOYEE STRENGTH >10,000 2,536 3% 3% 7% 5,000-10,000 1,656 United Kingdom 1,000-5,000 8,068 5% Canada 500-1,000 6,900 7%

200-500 14,199 Australia 50-200 39,235 75% India 10-50 73,470

1-10 1,15,227 Others

COMPANIES BY REVENUE SIZE1 COMPANIES BY INDUSTRY

Construction >1000M 5,036 6,259 Marketing 6,872 200M-1000M 8,135 Financial Services 7,213 Internet 8,043 100M-200M 6,232 Retail 8,356 50M-100M 9,704 Real Estate 8,410 Nonprofit Organization 9,505 10M-50M 35,003 IT & Services 13,759 0M-1M 54,778 Pharmaceuticals 14,844 Computer Software 27,704 1M-10M 1,55,580 0 10,000 20,000 30,000 40,000

Source: Idatalabs Website 10 Note: 1. Revenue in $Mn IDC WORLDWIDE IAAS VENDOR ASSESSMENT » AWS is poised to triple its size in five years, hitting $60Bn in revenue according to Wall Street firm Jefferies & Co.

» 37% of Amazon’s share price is valued based on AWS alone, based on JP Morgan’s research report, showing the immense potential that AWS has

» AWS would continue to grow by moving further into the application layer of cloud computing. Currently, it is focused on the infrastructure layer of software only

» AWS should make more buys in the security space as security is of the highest importance to its customers as well as the company

FORECASTED FINANCIALS

Figures in $Bn Q1 2018A Q2 2018A Q3 2018A Q4 2018E 2018E 2019E Revenues 5.4 6.1 6.7 7.2 25.3 34.2

% Growth 45% 35%

Operating Expenses 4 5 5 5 19 26

Operating Income 1.4 1.5 1.7 1.8 6.4 8.4

% Operating Margin 26% 25% 25% 25% 25% 25%

Source: IDC Website, JP Morgan Research Report, Synergy Consulting 11 Section 2: Industry Landscape IaaS PaaS SaaS Market Size: Market Size: Market Size:

84 27 117 23 102 67 87 19 53 74 15 41 60 12 30

2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

Key Players: Key Players: Key Players:

Source: Gartner Forecast; Avendus Research 13 Note: All figures in $Bn. MARKET SIZE REVENUES 13.7

84 11.0 9.9 67

53 6.7 7.1 41 5.9 30

2.3 1.3 1.4 0.4 0.8 0.3 2017 2018 2019 2020 2021 Amazon Microsoft IBM Google Alibaba SAP KEY PLAYERS 2016 2017 COMMENTS

» AWS dominates the IaaS cloud market and in its most recent earnings statement for Q1 FY18, AWS reported revenues of $5.4Bn, a 49% increase from this time last year

» is growing twice as fast as AWS as reported by their 90% growth in Q1 FY18 which is similar to the growth rate in Q4 FY17 of 97%

» These two big players are then followed by IBM Softlayer and

» According to a recent Cloud Security Alliance (CSA) report, AWS comprises 41.5% of application workloads in the public cloud followed by Microsoft Azure which currently holds 29.4% of the application workloads

Source: Gartner Forecast; Appsruntheworld website; Avendus Research 14 Note: All figures in $Bn. MARKET SIZE REVENUES

1.9 27 1.7 1.6 23 1.4 19 1.2 15 1.0 12 0.4 0.4 0.4 0.2 0.2 0.2 0.2 0.1 0.1 0.2

Salesforce Amazon Oracle SAP Microsoft IBM ServiceNow Alibaba 2017 2018 2019 2020 2021 2016 2017 KEY PLAYERS COMMENTS

» PaaS has been the smallest market among the cloud computing segments but it is growing faster in terms of revenue

» The segment used to be led by Salesforce & Oracle in 2016 but Amazon’s strong growth in this segment of over 70% has helped it leapfrog Oracle to become the second biggest player in the PaaS segment, meanwhile Salesforce still leads this space

» These players are followed by SAP, Microsoft, ServiceNow, Alibaba with relatively small market shares

» PaaS will be fueled by growth of Cloud platform products like 18c Database from Oracle(which became generally available in February 2018) and Amazon Aurora as customers migrate their workload to the Cloud

Source: Gartner Forecast; Appsruntheworld website; Avendus Research 15 Note: All figures in $Bn. MARKET SIZE REVENUES

7.8 7.0 117 6.3 102 4.3 87 3.8 3.4 74 2.8 2.9 2.3 1.8 1.8 1.5 1.5 60 1.3 1.1 1.5 1.2 1.1 0.9 1.0 0.8 0.7 0.7 0.8

2017 2018 2019 2020 2021 2016 2017 KEY PLAYERS COMMENTS

» The SaaS product category remains highly fragmented as more than 3,000 vendors are vying for a slice of a market that has the potential of topping $100Bn in annual revenues in the next 2-3 years

» Unlike IaaS & PaaS, Amazon is not a player here. Salesforce, Microsoft, Oracle & SAP are major players in this segment

» The important thing is note is the exponential growth seen by Microsoft over the past year of over 100%

» These big player are followed by second rung of players namely ServiceNow, Adobe, Workday, Google & IBM

Source: Gartner Forecast; Appsruntheworld website; Avendus Research 16 Note: All figures in $Bn. KEY FINDINGS » AWS is the leader in the IaaS segment but when it comes to the overall cloud market they lag behind Microsoft. They have very little presence in the SaaS segment

» IBM has been catching up, being just 10% below market leader Microsoft in terms of cloud revenues, and it recorded the highest revenues for Q4 2017 beating industry leaders Microsoft & AWS

» SAP, Oracle & Salesforce which aren’t generally considered among top cloud players have shown broad & deep growth in their cloud business & are amongst the top 6 players in the industry

» Google, even after its astonishing prowess in technological & financial resources, have only recently invested $1Bn in the cloud business

Cloud Revenues (in $Bn) 2016 Q4 2017 2017 Growth Rate (YoY) Q3 20181

Microsoft 12.1 5.3 18.6 54% 8.6 Amazon 12.2 5.1 17.5 43% 6.7 IBM 13.7 5.5 17.0 30% NA Salesforce 6.2 2.7 9.9 60% 3.1 Oracle 4.6 1.5 5.6 22% 1.6 SAP 3.0 1.2 4.7 57% 1.5 Google NA 1.0 3.0 NA NA

Source: Forbes & Company website Note: The figures are for entire cloud market and in $Bn. 17 1. Revenues for period Jul-Sep, 2018 as per latest reports IaaS, PaaS & SaaS IaaS, PaaS & SaaS PaaS & SaaS

A leader in hybrid cloud and World’s largest corporation Leader in the PaaS category, relentlessly integrating on- offering hardware, software & Marc Benioff is confident of premise cloud & Edge consulting to help customers cracking the $20Bn mark in a technology to exploit the full convert legacy systems into cloud few years, by creating new power of AI compatible systems revenue categories

PaaS & SaaS PaaS & SaaS IaaS, PaaS & SaaS It has got tons of money to invest, With 75% coming from SaaS World’s leading supplier of a concerted sense of purpose will platform currently, Larry enterprise applications, it banks put it as a serious contender. believes that PaaS & IaaS on existing clients for end-to-end Currently operates mainly at the would become major segments transformation to cloud as customers adopt database- SaaS & PaaS segments with as-a-service growing presence in IaaS segment

18 Section 3: Why use AWS? IT STAFF PRODUCTIVITY

IT Staff Productivity Increase Total = 4.39 » IT staff productivity increased by 52%. IT staff are thus 0.25 0.34 able to improve support of mission-critical operations 0.43 » Amazon cloud infrastructure services had significant 0.66 impact on application development and deployment, reducing overall developer hours by 80%, saving nearly 1.04 Total = 1.84 0.15 $1,50,000 per application per year 0.04 0.13 0.21

1.68 0.78 Enhanced End-user Productivity 0.53 » End users benefited from fewer service disruptions and Other AWS quicker recovery on Amazon cloud infrastructure services Management Saving Developer Server Management » Reduced downtime by 72% and improved application Application Management Storage Management Network Management availability by an average of 3.9 hours per user per year which translates to around $32,600 per application per year

User Productivity Others AWS Improvement

Business Model Benefit Downtime Events per year 2.82 2.00 29% » Many of the companies are employing AWS to enable Hours per year 7.76 4.12 75% new business models and support revenue-generating applications and were able to increase annual revenue Downtime hours per user per year 5.40 1.50 72% by over $1 million, which translates to more than $64,000 in annual operating income Availability% 99.49% 99.98%

Source: Based on a study by IDC 20 ANNUAL BENEFIT PER AWS ANNUAL COST SAVINGS PER APPLICATION APPLICATION

Total= $275,807 Summary in USD Total= $518,989 $13,626 Benefit (Discounted) 2,078,626 $32,566 $21,114 Investment (Discounted) 286,357 User Productivity $64,261 Net Present Value (NPV) 1,792,269 $50,409 Storage Operating Income Return on Investment (ROI) 626% 1,46,355 Networking Payback Period 7.1 months Eqipment IT Staff Hosting & Other Discount Rate 12% Productivity Service Servers $1,90,658 Cost Reduction: » The five-year ROI analysis shows that on average, Infrastructure & $2,75,807 the organizations which spent $286,000 per Service application on AWS and received $2.1 million per application in benefits » The five-year total cost of ownership (TCO) of developing, deploying, and managing critical Benefit over Time applications in Amazon cloud infrastructure » There is a definite correlation between the length of time customers have been using Amazon cloud services represents a 72% savings compared with deploying infrastructure and their returns. Benefits increase over time the same resources on-premises or in hosted environments. The translates to a 626% ROI over » At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; five years at 60 months, they are realizing $8.40 for every $1.00 invested

» This accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve

Source: Based on a study by IDC 21 Section 4: AWS Offerings Amazon Glacier AWS Snowball Elastic Load Compute Storage Amazon S3 Amazon EC2 Amazon ECR Balancing Services Services

Amazon Amazon Amazon AWS Batch AWS Storage Amazon EBS EFS Lambda Lightsail Gateway

Networking Amazon Database Amazon Amazon Amazon RDS DynamoDB ElastiCache & Content VPC CloudFront Route 53 Services Delivery

Global Secondary AWS Direct Elastic Load Amazon Redshift Redis Index Connect Balancing

Source: AWS Website 23 Migration Developer Tools Management Tools Miscellaneous

Amazon AWS AWS Application AWS AWS AWS AWS Migration AWS SMS AWS CloudFormation CodeStar CodeBuild CloudWatch CloudTrail Hub Discovery Service X-Ray Amazon Amazon Chime WorkDocs Security & Compliance Analytics Artificial Intelligence

Amazon Amazon WorkMail AppStream 2.0*

Amazon Amazon Amazon Amazon Amazon Amazon Amazon Amazon Machine IAM Cloud Directory Inspector Athena EMR CloudSearch Lex Polly Learning

Amazon Mobile Services Application Service Messaging WorkSpaces AWS IoT

Amazon Amazon AWS Step Amazon Amazon Elastic Amazon Amazon Connect AWS Amazon Amazon Amazon GameLift Functions SWF Transcoder SNS SES Mobile Hub Mobile Analytics Pinpoint SQS

Source: AWS Website 24 Amazon EC2 Amazon S3 AWS Data Amazon SQS Amazon RDS Amazon Route 53 Amazon SWF Amazon SES 100% 100% Transfer 84% 72% 70% 63% 53% 100%

Amazon VPC Amazon Cloudfront Amazon Lambda Amazon Amazon AWS Config Amazon Workspace AWS Directory 52% 40% 38% Elasticache DynamoDB 35% 27% 27% 37% 35%

Amazon EFS Amazon Marketplace AWS Direct Connect Amazon Redshift Amazon ES AWS DMS AWS Storage Gateway Amazon Elastic 26% 23% 21% 19% 19% 17% 14% MapReduce 12%

Note: Based on report by 2ndWatch basis their customers in 2016, assumed to be similar for AWS. 25 Section 5: AWS Partner Programs AWS Competencies are granted to APN Partners who have demonstrated technical proficiency and proven customer success in specialized solution areas. Attaining an AWS Competency allows APN members to differentiate themselves to customers by showcasing expertise in a particular solution.

Competency The AWS MSP Partner Program is designed for Program The AWS Service Delivery Program highlights APN APN Consulting Partners who are skilled at cloud Partners with a track record of delivering specific AWS infrastructure and application migration, and deliver services to customers. Attaining an AWS Service value to customers by offering proactive monitoring, Delivery Distinction allows partners to differentiate automation, and management of their customer’s themselves by showcasing to AWS customers areas of environment. specialization. Managed Service Service Delivery Provider Program

Consulting Partner Marketplace Channel Reseller Consulting Partner Program The AWS Marketplace Consulting Partner Program The AWS Global Channel Reseller Program enables provides qualified AWS Partners with AWS training qualified partners to resell AWS services to both and marketing support to help them configure and commercial and public sector end customers. The program deploy AWS Marketplace software for their is designed for APN Consulting Partners who have built customers. their AWS practice to include professional services and Training Partner management of end customer AWS deployments. Program

The AWS Training Partner Program allows customers to easily identify APN Partners that provide training which will enhance their knowledge of AWS. Source: AWS Website 27 AWS Competencies are granted to APN Partners who have demonstrated technical proficiency and proven customer success in specialized solution areas. Attaining an AWS Competency allows APN members to differentiate themselves to customers by showcasing expertise in a particular solution.

Competency The AWS SaaS Partner Program provides APN Program The AWS Direct Connect Program supports AWS Partners with support as they build, launch, and grow Customers establish network connectivity between AWS SaaS solutions on AWS. APN Technology Partners Direct Connect locations and their datacenter, office, or who develop SaaS solutions and utilize a SaaS- colocation environment. Direct Connect Partners improve based software licensing and delivery model are customer experience by providing flexibility and choices encouraged to apply for the Program. on how to connect with AWS. SaaS Partner Direct Connect Program Program

Technology Partner Marketplace Navigate Program Partner The AWS Marketplace enables qualified partners to The AWS Navigate Program provides APN Partners with a market and sell their software to AWS Customers. prescriptive path for building an AWS specialty based on AWS Marketplace is an online software store that industry, services, solutions, and workloads. The AWS helps customers find, buy, and immediately start Navigate Program includes customized e-learning, tools using the software and services that run on AWS. and resources for business and technical tracks, and Public Sector “Apply Your Knowledge” checkpoints. Partner Program

The Public Sector Partner Program enables partners to accelerate their business growth on AWS through alignment with our public sector sales, marketing, partner, and bd teams. The program targets Standard and higher tier APN Consulting and Source: AWS Website Technology partners with a strong emphasis in public sector, including government, 28 education, and non-profit. Competency Program Managed Service Provider Service Delivery Program Marketplace Consulting Channel Reseller Program

Consulting Partner

Competency Program SaaS Partner Program Direct Connect Program SPLIT OF TECHNOLOGY & CONSULTING PARTNERS

Technology Partner, 52% Consulting Partner, 48%

Technology Partner Marketplace Partner Navigate Program Public Sector Partner

Total: 5859 partners

Source: AWS Website 29 Section 6: AWS Tiers & Certifications Premier Advanced Requirements Standard Requirements APN Program fee of $2500/ year APN Program fee of $2500/ year AWS Billing by Region Requirements AWS Billings: $50,000 AWS Accreditation: 20 Technical Registered APN Program fee of $2500/ year AWS Accreditation: 8 Technical Professional, 20 Business Professional, AWS Billings: $1000 Professional, 8 Business Professional, 8 TCO & Cloud Economics AWS Accreditation: 2 Technical 4 TCO & Cloud Economics AWS Certification: 20 Associate Level, Requirements Professional, 2 Business Professional AWS Certification: 4 Associate Level, 8 Professional Level Complete online AWS Certification: 2 Associate Level 2 Professional Level 1 AWS Competency APN Partner Profile AWS Support Level: Developer+ AWS Support Level: Business+ AWS Support Level: Business+ Benefits Benefits Benefits Benefits APN Portal access, APN Webcast All Registered Tier benefits plus…. All Standard Tier benefits plus…. Online trainings & AWSAccreditations Use of APN Logo All Advanced Tier benefits plus…. AWSSolutions Trainings for Partners Company Profile on Partner Solution Finder Eligible for additional Proof of Concept APN Premier Partner Page Listing Access to APN Learning Path Access to training funding Funding Eligible for AWS-written case studies Access to APN Marketing Central Eligible for Market Development Funding Eligible for AWS Professional Service Program unlock: AWS Channel Reseller, AWS Program Unlock: Managed Service Bootcamp Training Service Delivery, Public Sector Partner Provider Program, AWS Competency 2 weeks of free AWS Professional Program Service for qualifies enterprise opportunities Named AWS Partner Account Manager

Source: AWS Website 31 SPECIALITY ROLE BASED CERTIFICATIONS CERTIFICATIONS

AWS Certified AWS Certified AWS Certified AWS Certified Professional Solutions Architect DevOps Engineer DevOps Engineer Advanced -Professional -Professional -Professional Networking -Speciality

AWS Certified AWS Certified AWS Certified AWS Certified Associate Solutions Architect Developer SysOps Developer Big Data -Associate -Associate -Associate -Speciality

AWS Certified AWS Certified AWS Certified AWS Certified AWS Certified Foundational Cloud Cloud Practitioner Cloud Practitioner Security Practitioner Cloud Practitioner -Speciality

Cloud Architect Developer Operations Practitioner

Source: AWS Website 32 Section 7: AWS Partner Analysis By Workload By AWS Service » Microsoft » Database Service Partner Partners » Compute Service Partner » SAP Partner » Content Delivery Partner » Oracle Partner » Security Partner » Serverless Computing Partner » Analytics Service Partner By Industry By Solution » GovCloud US Partner » Government Partner » Migration Partners » Education Partner » Mobile Partners » Healthcare Partner » Storage Partners » Life Science Partner » Big Data Partners » Financial Service » Security Partners Partner » DevOps Partner » Digital Media Partner » IoT Partner » Marketing/Commerce » Machine Learning Partner Partner » Networking Partner

Source: AWS Website 34 Software & Consumer Government & Financial Healthcare Entertainment Retail Internet Services Education Services

Others COMPANIES SPLIT BY INDUSTRY

Business & Consumer Services

Telecom Financial Services 4% 10% 15% 2% Government, Education & Public 5% Services 2% Healthcare, 2% Pharmaceuticals & Biotech Media, Entertainment & Leisure 60% Software & Internet

Telecommunications Total: 5859 partners

Source: AWS Website 35 Database Service Partner Compute Service Partner Content Delivery Partner Security Partner Serverless Computing Analytics Partner

Migration Partner Big Data Partner Machine Learning Partner IoT Partner SAP Partner Oracle Partner

Source: AWS Website 36 North America Partners Asia Pacific Partner

Europe, Middle East & Africa Partners Japan Partners Latin America Partners China Partners

Source: AWS Website 37 Consulting Partners Technology Partners

NA

Premier Partners

Advanced Partners

Standard Partners

Source: AWS Website 38 Cloud Revenue Multi Single

USD 100Mn+

USD 50-100Mn

USD 25-50Mn

USD 0-25Mn

Source: Avendus Research, Datafox 39 Section 8: Deal Activity Acquirer Companies Strategic Strategic PE 32 deals

47 deals PE 15 deals

US PE Roll-up Play 34 deals

47 deals Others 13 deals

Source: Merger Markets, Avendus Research 41 Note: These deals are only for consulting partners for the last 4 years Sr. Deal Target Funding / EV/REVENUE EV/EBITDA Target Company Acquirer / PE Technology Deal Value ($ Mn) No. Month Geography M&A (TTM) (TTM) 1 Nov-18 Infradata IK Investment Partners Netherland PE AWS NA NA NA 2 Nov-18 Stelligent Systems Mphasis US Strategic AWS 25 NA NA 3 Nov-18 Fullsave Management Vehicle France Strategic AWS 5 NA NA Redpoint Ventures; GGV Capital; Bessemer Venture Partners; 4 Nov-18 HashiCorp US PE AWS 100 NA NA Mayfield Fund, LLC; Institutional Venture Partners; True Ventures 5 Oct-18 Dome9 Check Point Software US Strategic AWS 33 11.1x 57.2x 6 Oct-18 ObjectLabs Corporation MongoDB US Strategic AWS NA NA NA 7 Sep-18 RightScale Flexera Software US Strategic AWS NA NA NA Columbia Capital; Top Tier Capital 8 Sep-18 Contino Solutions Limited UK PE AWS 40 NA NA Partners 9 Sep-18 Infiniti Consulting Group InterVision Systems US Strategic AWS NA NA NA Muenchener Rueckversicherung 10 Sep-18 Relayr Germany Strategic AWS NA NA NA Gesellschaft Aktiengesellschaft 11 Sep-18 Conapto Segulah Advisor Sweden Strategic AWS 17 1.3x 6.7x 12 Sep-18 Relus Cloud Cloudreach US Strategic AWS NA NA NA 13 Aug-18 TriNimbus Technologies Onica Group Canada Strategic AWS NA NA NA 14 Jul-18 Rean Cloud Hitachi Vantara USA Strategic AWS NA NA NA 15 May-18 Velostrata Google USA Strategic AWS, Azure, Google NA NA NA 16 May-18 G2 Technology Group Reliam USA Strategic AWS NA NA NA

Source: Merger Markets, Avendus Research 42 Sr. Target EV/REVENUE EV/EBITDA Deal Month Target Company Acquirer / PE Funding / M&A Technology Deal Value ($ Mn) No. Geography (TTM) (TTM)

17 Apr-18 Scality Iris Capital; Menlo Ventures USA PE AWS, Azure, Google 60 NA NA

18 Apr-18 Stratalux Reliam USA Strategic AWS NA NA NA

19 Mar-18 Evident.io Palo Alto Networks USA Strategic AWS, Azure 293 NA NA

20 Mar-18 Minjar Cloud Solutions Nutanix India Strategic AWS 24 NA NA

21 Dec-17 Sturday Networks + NetBrain Onica USA Strategic AWS NA NA NA

AWS, Google Cloud, 22 Dec-17 AllCloud Multiple investors Israel PE 3 NA NA Salesforce

23 Nov-17 Reliam Great Hill Partners USA PE AWS NA NA NA

24 Nov-17 Apps Associates BV Investment Partners USA PE AWS, Salesforce, Oracle NA NA NA

25 Oct-17 Onica Sunstone Partners USA PE AWS 20 NA NA

AWS, MS Azure, Google 26 Sep-17 Cloud Technology Partners HP Enterprise USA Strategic NA NA NA Cloud

Emerging Technology AWS, MS Azure, Google 27 Aug-17 Cloudreach USA Strategic NA NA NA Providers Cloud

28 Jul-17 47Lining REAN Cloud USA Strategic AWS NA NA NA

29 Jul-17 Bespin Global Legend Capital & Others South Korea PE AWS NA NA NA

Source: Merger Markets, Avendus Research 43 Sr. Target Funding / EV/REVENUE EV/EBITDA Deal Month Target Company Acquirer / PE Technology Deal Value ($ Mn) No. Geography M&A (TTM) (TTM) 30 May-17 TriCore Solutions Rackspace USA Strategic AWS, Oracle, SAP, MS, NA NA NA 31 May-17 ECS CGI USA Strategic AWS, MS Azure, Google Cloud NA NA NA 32 Mar-17 Virtual Clarity DXC Technology UK Strategic AWS, MS Azure, IBM Cloud NA NA NA

33 Mar-17 2nd Watch Delta-V Capital & Existing USA PE AWS 19 NA NA 34 Mar-17 Day1 Solutions Deloitte Digital USA Strategic AWS NA NA NA 35 Mar-17 Stelligent HOSTING USA Strategic AWS NA NA NA 36 Feb-17 Cloudreach Blackstone UK PE AWS, MS Azure, Google Cloud NA NA NA 37 Jan-17 Aquilent Booz Allen Hamilton USA Strategic AWS & others 250 NA NA 38 Jan-17 Cloud Cruiser HP Enterprise USA Strategic AWS, MS Azure, Google Cloud NA NA NA 39 Dec-16 LogicWorks Pamplona USA PE AWS, MS Azure & others 135 NA NA Salesforce, Workday, AWS & 40 Oct-16 Appirio Wipro USA Strategic 500 2.6x NA others 41 May-16 REAN Cloud BV Investment Partners USA PE AWS 11 NA NA 42 Jan-16 Kloud Solutions Telstra Corporation Australia Strategic AWS, MS Azure & others 40 NA NA 43 Nov-15 AHEAD Court Square Capital USA PE AWS, MS Azure & others NA NA NA 44 Sep-15 DualSpark Datapipe USA Strategic AWS NA NA NA 45 Jul-15 Axon Networks Trianz USA Strategic AWS, MS Azure NA NA NA 46 Feb-15 Uber Global Melbourne IT Australia Strategic Microsoft, AWS 13 0.9x NA 47 Oct-14 2nd Watch Top Tier Capital Partners USA PE AWS 10 NA NA

Source: Merger Markets, Avendus Research 44 Cheaper cloud workloads as Arm-based chips make their AWS debut For the first time, AWS' EC2 platform will offer virtual machines (VMs) running on Arm-based processors, via the new A1 instances. These instances promise to be a good match for computing tasks such as running containerized microservices or web servers. 1 For such workloads, Amazon is promising the new A1 instance will offer up to a 45% cost reduction, relative to other EC2 general-purpose instances, due to being more efficient in how they handle workloads that can be scaled out over multiple processors. AWS customer and photo-sharing site SmugMug is predicting a 40% cost saving by moving its PHP-based technology stack to the new instances.

Accelerating machine learning when training on huge datasets in the cloud Demand for machine learning infrastructure is exploding, and AWS has announced new heavy-duty instances designed to reduce training time for machine-learning 2 models. The new P3dn instances promise to reduce training time to less than an hour in some circumstances, according to AWS.

New hybrid cloud and high-performance computing services Companies will be able to pay to host the AWS cloud platform on-premises, as AWS moves deeper into the hybrid cloud market. 3 The AWS Outposts service provides fully managed but still configurable compute and storage that is connected to the rest of AWS's cloud. This in-house infrastructure will be available in VMware Cloud on AWS and AWS native configurations — with customers using the same tools to manage both on-premise and public cloud AWS infrastructure.

Simplify creating and running IoT applications from the cloud AWS also revealed a suite of new tools designed to make it easier to build and run IoT applications. 4 AWS IoT SiteWise is a managed service that collects, organizes and structures data collected by IoT devices in industrial facilities, so it can be used to analyze equipment and performance data.

45 AWS to offer fully managed satellite ground stations AWS also announced the world's first fully managed ground station-as-a-service. 5 CEO Andy Jassy says the service is designed to provide all the infrastructure needed to relay data to and from satellites, as well as to store, process and analyze that data. AWS has built two AWS Ground Stations, with 10 more expected before mid-2019 worldwide.

Amazon launched a service called AWS RoboMaker & Blockchain This leverages the increasingly standard ROS (Robot Operating System) and provides a cloud robotics service that makes it easy to develop, test, deploy and manage 6 intelligent robotics applications at scale (an intro video is embedded at the end of this post). AWS is also enabling Blockchain.

AWS Snowball and Snowball Edge are evolving at a faster pace Initially the Snowball was a great way to move data from enterprises to the Amazon cloud. Load the data on the device and ship it. This is still a key use case. But newer 7 versions of the device (the Snowball Edge) included enough processing power to do compute on the edge, meaning many analytics could be done on data before moving it to the cloud. The device soon evolved to be a mini-Amazon instance that can be used in disconnected locations. It includes very high end advanced analytics like image processing and full motion video analysis.

AWS Outposts was announced (with VMware) to bring AWS hardware and API design into enterprise datacenters This is huge IT shows the cloud competition is moving into your datacenter on prem. This will set off a new competition. Watch for Google to finally wake up and find 8 ways to offer similar solutions. And watch for Microsoft gloating since they have known this approach is important for years. The AWS Security Hub is a welcome pulling together of capabilties and insights into security of cloud solutions. Amazon Firecracker is incredible interesting but frankly I need to study this more before I can articulate why. Will be writing more about this in the coming days.

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