As both buyers and sellers, we are a huge proponent of the Marketplace. We’ve seen how it allows for greater risk-taking and risk mitigation for AWS Partners – which translates to greater profits for our clients and all Partners. For example, when a client leaves or usage shifts greatly, we can leverage the Marketplace and sell off unneeded RIs very quickly. This is exactly how the Marketplace operates in the U.S. However, outside the U.S., the Marketplace doesn’t always work that way. For example, in the Sydney market, even a well-priced Linux m3.medium can take weeks to sell whereas in the U.S. market, something like that would last one day, at most.
U.S. Bank Account Requirement
Basically, the Marketplace in different regions suffers from a lack of RI sellers and buyers because not enough companies meet one simple requirement from Amazon to sell their RIs; Marketplace participants must have a U.S. bank account. Based on our experience, this requirement is not going to change any time soon. So how do we address this barrier for Partners and create thriving Marketplaces like the one in the U.S.?
Parquantix: The Barrier Buster
Our solution is simple. For non-US clients, we allow them to use our bank account so that we can sell RIs as needed. We simply collect the money from AWS and then credit the Partner on their invoice from us. So essentially, the credits are applied to our share of the additional profits generated from the RIs we manage for the Partner. It’s an extremely simple and elegant solution. We remove this barrier for many companies outside the U.S. and cover their risks (e.g., guarantee unused RIs and cover up-front costs of RIs). As we continue to grow with Partners outside the U.S., this will increase the number of participants in the non-U.S. Marketplaces, increase the volume of RIs bought and sold, and ultimately reduce the risk of owning RIs for all companies in a region.
By Jon Leach, Director of Technology and Product Development
