Private Equity Firms: Got Speed for your ISV? How does $1.2B in valuation in 2 years sound?

ISV Sales Best Practices with AWS

In this series, we will un-pack how leading Private Equity (PE) backed ISVs are leveraging AWS for value creation. While it’s easy to get distracted by the complexity of the cloud(s), there are compelling examples of how others are improving EBDITA and the rule of 40 leveraging AWS.  At Wingspan Equity our focus is on PE backed ISV’s so keep reading to see our thoughts on proven methods where software firms are using AWS to create value.

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While cloud platforms can drive scalability and efficiency, many ISVs fail to leverage the full range of AWS sales engagement and programs, often leaving significant revenue opportunities on the table.  In general, leveraging the cloud works, but only if you keep up with proven methods and have solid plans. In this discussion we’re going to unpack thoughts on what’s working for PE backed ISVs, and our best picks for how to create revenue streams with AWS.  While there are dozens of AWS programs, these are ones that we’d recommend you consider. 

AWS PARTNER ISV SALES BEST PRACTICES

Build Pipeline and Expand Market Reach - Some programs have been around for years while others are new, and nearly all are being constantly changed based on customer feedback.  Most AWS ISV partners know the basics like; joining the Amazon Partner Network (APN) and registering deals in the APN Customer Engagement (ACE).  Still there are key offerings that many ISVs miss or are not aware of. For instance:

Increasing co-selling with AWS through the AWS ISV Accelerate Program - Launched in 2020, this AWS sales program creates co-sell opportunities for ISV’s with AWS sales teams that are incented on increasing AWS consumption with ISVs using AWS. Adams street partners backed Orca Security leveraged multiple AWS programs including ISV accelerate and were able to achieve a $1.2 billion valuation in just 2 years.  While it takes more effort to qualify for this program, expanding your sales coverage with AWS sales teams advocating your offerings is worth it. 

Open on-line sales channels with the AWS Marketplace - According to a 2023 IDC study, cloud marketplaces account for 18.6% of emerging ISV revenue. Launched in 2012 the AWS marketplace is well established today with over 40,000 offerings.  A 2022 Forrester report highlighted that ISVs listing on the AWS Marketplace realized: 81% ROI, 80% richer deal sizes, 27% higher win rates, and 40% faster sales cycles. Some partners like tackle.io cite as much as 100%+ ARR growth using the marketplace.

Access enterprise opportunities with Private Offers & Flexible Pricing Models - Launched in 2017, this marketplace feature enables buyers and sellers to negotiate custom terms and simplify upgrades and renewals.  Private offers are especially useful for situations where customers need bespoke solutions.  It also unlocks high value enterprise deals for ISVs with AWS sales teams.  For instance, Accel backed Snyk achieved a 14% ROI on their marketing investment and more importantly, reduced their sales cycles up to 50% by using private offers.

LEVERAGING PARTNER EXPERTS

AWS / Wingspan Flight Path Offering - Introduced in 2024, this joint offering from AWS and Wingspan Equity is tailored specifically for private equity backed ISVs. The two-week program aligns leadership teams with a compelling strategic vision, identifies key risks and provides new thinking on enterprise value in both cost and ARR goals.

Conclusion: Are Your ISVs Fully Capitalizing on AWS?

For PE-backed ISVs, AWS is more than just a cloud platform — it can be a powerful sales and revenue accelerator. However, without a clear strategy you may fail to capture the full value AWS has to offer.  At Wingspan Equity, we work closely with PE backed ISVs to navigate AWS programs, optimize sales channels, and implement strategies that drive measurable growth making sure you’re not leaving money on the table.

Feel free to contact us at: info@wingspanequity.com.