This chapter covers the AWS Partner Network (APN), a global program that helps organizations build, market, and sell AWS offerings. For the CLF-C02 exam, this falls under Domain 4: Billing, Pricing, and Support, specifically Objective 4.3: Identify AWS resources for support. The APN is a small but testable topic—expect 1-2 questions on partner tiers, programs, and benefits. Understanding APN is crucial because it differentiates how AWS scales its ecosystem versus competitors like Azure or GCP, and it directly impacts cost and support options for customers.
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Imagine you want to open a restaurant. You could develop your own recipes, hire staff, and build a brand from scratch—that's like building a cloud solution without AWS. Alternatively, you could join a franchise like McDonald's. McDonald's provides you with a proven business model, supply chain, training, and brand recognition. In return, you pay franchise fees and adhere to their standards. Similarly, the AWS Partner Network (APN) is a franchise-like ecosystem. AWS (the franchisor) offers partners (franchisees) access to training, certification, marketing support, and sales leads. Partners can resell AWS services (like selling Big Macs) or build solutions on top of AWS (like offering a unique menu item). AWS tiers partners as Select, Advanced, or Premier based on revenue and certifications—just as franchises have tiers based on sales and quality audits. The partner earns margin (discount) on AWS services sold, while AWS benefits from increased adoption. The mechanism: a customer buys through a partner, the partner gets a discount from AWS, and the partner sets the final price. AWS handles the underlying infrastructure; the partner focuses on customer relationships and value-add services.
What is the AWS Partner Network (APN)?
The AWS Partner Network (APN) is the global partner program for AWS. It is designed to help organizations that build solutions and services on AWS (Consulting Partners) or that resell AWS services (Software Partners) to grow their business. The APN provides business, technical, marketing, and go-to-market support to partners. For customers, working with an APN partner can mean faster time-to-market, reduced risk, and access to specialized expertise.
The Problem It Solves
AWS alone cannot serve every customer directly, especially small and medium businesses that need local support, or enterprises that require deep industry-specific solutions. The APN bridges this gap by creating an ecosystem of third-party companies that extend AWS's reach. Partners bring their own customer relationships, domain expertise, and value-added services. This is similar to how a platform like Apple's App Store relies on developers to create apps that make the iPhone useful.
How APN Works: The Mechanism
The APN operates through a tiered partnership model. Partners apply, meet certain criteria, and are validated by AWS. Once accepted, they get access to: - Training and Certification: Free or discounted AWS training for their employees. - Marketing Resources: Co-branded marketing materials, case studies, and PR support. - Sales Support: AWS assigns a Partner Development Manager (PDM) to top-tier partners. - Technical Support: Access to AWS Solutions Architects and technical account managers. - Financial Incentives: Discounts on AWS services (via the Partner Discount Program) and rebates for generating new business.
Partners are categorized into two main types: - Consulting Partners: These are professional services firms that help customers design, architect, build, migrate, and manage workloads on AWS. Examples include Accenture, Deloitte, and smaller local consultancies. - Software Partners: These are ISVs (Independent Software Vendors) that build software solutions on AWS, often listed in AWS Marketplace. Examples include Splunk, Datadog, and McAfee.
Key Partner Tiers
Partners are further tiered based on their investment and performance: - Select: Entry-level. Requires 2+ certified individuals and a case study. Minimal benefits. - Advanced: Mid-tier. Requires 4+ certified individuals, a proven track record, and a customer reference. Partners get more AWS funding and support. - Premier: Top-tier. Requires 50+ certified individuals (or other criteria) and significant revenue. Partners get a dedicated partner manager and executive access.
There is also a Validated tier for partners who have completed a specific validation process, but this is less common.
Partner Programs Within APN
The APN includes several specialized programs: - AWS Competency Program: Partners with deep technical expertise in specific areas (e.g., Migration, Security, DevOps) can earn a Competency badge. This requires passing an audit and having customer references. - AWS Service Delivery Program: Partners that deliver specific AWS services (e.g., Amazon EC2, Amazon S3) at a high quality can earn a Service Delivery designation. - AWS Marketplace: A digital catalog of software listings from partners. Customers can find, buy, and deploy software that runs on AWS. Partners can list their products and earn revenue. - AWS ISV Accelerator Program: For software partners, provides funding and support to build on AWS. - AWS Public Sector Program: For partners serving government, education, and nonprofits.
Pricing and Financial Models
Partners can earn revenue in several ways: - Resell: Buy AWS services at a discount (typically 5-15% off list price) and sell to customers at a markup. The partner sets the final price. - Referral: For consulting partners, AWS pays a referral fee (5-10%) for introducing a customer who then signs up for AWS. - Software Licensing: For software partners, they sell their own software licenses (e.g., per-hour or per-user) via AWS Marketplace, and AWS takes a small cut (usually 5-15%). - Managed Services: Partners can manage customer AWS environments and charge a management fee.
Comparison to On-Premises or Competing Approaches
On-premises, companies buy hardware and software directly from vendors like Dell or Microsoft. There is no formal partner network; instead, there are resellers and VARs (Value-Added Resellers). AWS's APN is more structured, with clear tiers, certifications, and benefits. Competitors like Microsoft have the Microsoft Partner Network (MPN) and Google has the Google Cloud Partner Advantage program. All are similar, but AWS's program is considered the most mature with the largest ecosystem.
When to Use APN vs Alternatives
Use a Consulting Partner when: You lack in-house AWS expertise, need migration assistance, or want to accelerate cloud adoption. Partners can provide proof-of-concepts and managed services.
Use a Software Partner when: You need a third-party solution (e.g., monitoring, security, backup) that integrates with AWS. AWS Marketplace makes it easy to find and deploy.
Work directly with AWS when: You have internal expertise and want to minimize costs (no partner markup). However, you may miss out on partner discounts or support.
Exam-Relevant Details
For CLF-C02, focus on:
The three partner tiers: Select, Advanced, Premier.
The difference between Consulting and Software partners.
The AWS Competency Program and Service Delivery Program.
The AWS Marketplace as a place to buy and sell software.
The concept of "partner discount" and "referral fee."
The APN is free to join (no upfront cost), but partners must meet criteria to progress.
Subheadings in Detail
#### APN Partner Tiers: Select, Advanced, Premier
Each tier has specific requirements: - Select: 2 AWS Certified individuals (any certification), one published customer reference or case study. Benefits: access to APN portal, training discounts, and limited marketing support. - Advanced: 4 AWS Certified individuals, 2 customer references, and a demonstrated track record (e.g., revenue or projects). Benefits: additional AWS funding (up to $10,000 per year), a Partner Development Manager, and better pricing. - Premier: 50 AWS Certified individuals (or equivalent), significant revenue (typically $1M+ per year), and multiple references. Benefits: dedicated partner manager, executive briefings, and up to $50,000 in funding.
#### Consulting vs. Software Partners
Consulting Partners: Provide services like migration, managed services, and consulting. They do not build software products. They earn through resell and referral fees.
Software Partners: Build software that runs on or integrates with AWS. They list their products in AWS Marketplace. They earn through software sales.
#### AWS Competency and Service Delivery
Competency: Demonstrates deep expertise in a solution area (e.g., Security, DevOps, Migration). Partners must pass a technical validation and have customer success stories. There are over 30 competencies.
Service Delivery: Shows proficiency in delivering a specific AWS service (e.g., Amazon RDS Service Delivery). Partners must meet performance metrics and have certified staff.
#### AWS Marketplace
AWS Marketplace is like an app store for AWS. Customers can find, subscribe, and deploy software that runs on AWS. Pricing can be hourly, monthly, or annual. Partners can list their products and AWS handles billing and collection, taking a small cut (typically 5-15%). The marketplace includes both free and paid products.
#### Partner Discount Program
When a partner resells AWS services, they get a discount off the list price. The partner then sets their own price for the customer. For example, if a service costs $100 on AWS, the partner might get it for $90 and charge the customer $110. The partner keeps the $20 margin. This is called "Private Pricing" or "Distribution Discount."
#### APN Funding Programs
AWS provides funds to partners for specific activities: - Partner Opportunity Acceleration (POA): Funds for marketing and sales activities to generate new business. - Proof of Concept (POC): Funds to build a POC for a customer. - Migration Acceleration Program (MAP): Funds to help customers migrate to AWS.
These are not directly tested on CLF-C02 but help understand the ecosystem.
Summary of Key Points
APN is free to join, but tier progression requires certifications and revenue.
Partners can be Consulting (services) or Software (products).
Tiers: Select, Advanced, Premier.
AWS Marketplace is for software listings.
Competency and Service Delivery are validation programs.
Partners earn through resell discounts, referral fees, and software sales.
Customers benefit from partner expertise and support.
Exam Tips
Know the three tiers and their basic requirements.
Understand that APN is about partners, not customers directly.
Remember that AWS Marketplace is part of APN.
Differentiate between Consulting and Software partners.
Be aware that Competency is for solution areas, Service Delivery is for specific services.
Join the APN Program
A company decides to become an AWS partner. They go to the AWS Partner Network website and click 'Join'. They provide company details, including tax information and a description of their business. No payment is required; the APN is free. AWS reviews the application and approves it within a few days. Once approved, the company becomes a Select Partner automatically. They now have access to the APN Partner Central portal, which contains training, marketing collateral, and support resources. The company should immediately start enrolling employees in AWS training and certification to meet higher tier requirements.
Achieve Select Tier Requirements
To remain a Select Partner, the company must maintain at least 2 AWS Certified individuals. They can use free training from AWS to prepare for exams. They also need to publish at least one customer reference or case study. This involves working with a customer to document how AWS solutions helped their business. The case study is submitted to AWS for approval. Once approved, the partner is eligible for select benefits like access to AWS funding programs. The company can now start reselling AWS services with a small discount (typically 5-10% off list price).
Upgrade to Advanced Tier
The company wants more benefits, like a larger discount and a dedicated partner manager. They need to achieve Advanced tier. This requires 4 AWS Certified individuals (any certification, but at least 2 must be from different categories). They also need 2 customer references and a proven track record—usually demonstrated by having completed at least 3 AWS projects or generating a certain amount of revenue (e.g., $50,000 in AWS consumption). AWS reviews the application and if approved, the partner gets a Partner Development Manager (PDM) who helps with sales strategy. The discount increases to 10-15%.
Earn a Competency Badge
To differentiate themselves, the company decides to earn an AWS Competency in Security. They must have at least 5 certified individuals with security-specific certifications (e.g., AWS Certified Security - Specialty). They also need to provide 3 customer references showing successful security projects on AWS. A technical validation is conducted by AWS, which may include a review of architecture and a phone interview. Once validated, the company gets a Competency badge displayed on their AWS Partner profile. This helps customers find them and can lead to more business.
List Software in AWS Marketplace
If the company is a software partner, they can list their product in AWS Marketplace. They first need to be an APN partner. Then they create a product listing using the AWS Marketplace Management Portal. They define pricing (hourly, monthly, or annual). AWS handles billing and collection, taking a small cut (e.g., 5% for AMI-based products). The partner must provide technical documentation and support. Once listed, customers can find the software, subscribe with one click, and deploy it directly into their AWS account. The partner earns revenue from subscriptions.
Manage Partner Discounts and Resell
A customer wants to use AWS services and decides to buy through the partner. The partner uses the AWS Partner Central to create a 'Private Offer' for the customer. The partner sets a price that includes their margin. AWS then bills the customer directly at that price. The partner receives a discount from AWS (the difference between list price and the partner's cost). The partner's margin is the difference between the discounted cost and the price they charged the customer. The partner must ensure they comply with AWS pricing policies and do not undercut AWS list prices excessively.
Scenario 1: Small Business Migration
A mid-sized manufacturing company, ManuCorp, wants to migrate its on-premises ERP system to AWS but lacks cloud expertise. They engage an APN Consulting Partner, CloudMigrate, which is an Advanced Tier partner with Migration Competency. CloudMigrate assesses the environment, designs a migration plan, and executes the move using AWS Migration Acceleration Program (MAP) funds. The partner gets a discount on AWS services (15% off) and charges ManuCorp a project fee plus a 10% markup on AWS services. ManuCorp benefits from a faster, less risky migration. Cost: ManuCorp pays more than direct AWS pricing, but gains expertise and support. If misconfigured, the partner might over-provision resources, leading to higher costs. The partner's discount is not passed to the customer, so the customer pays list price plus margin.
Scenario 2: Software Vendor Going Global
A SaaS startup, DataViz, builds a data visualization tool on AWS. They join APN as a Software Partner and list their product in AWS Marketplace. They set a monthly subscription of $500. AWS takes a 5% cut ($25), and DataViz receives $475. Customers can find DataViz in the marketplace, subscribe, and deploy it into their AWS account. DataViz also earns a rebate from AWS for generating new AWS usage (e.g., if customers use EC2 to run DataViz, DataViz gets a referral fee). This model helps DataViz reach global customers without managing billing. If DataViz fails to maintain security certifications, they might lose their listing.
Scenario 3: Managed Services Provider
A large MSP, SysAdmin Pro, is a Premier Tier Consulting Partner. They manage hundreds of customer AWS environments. They use the AWS Partner Discount Program to get a 20% discount on all AWS services used by their customers. They then charge customers a flat monthly management fee plus the actual AWS costs at list price (no markup). Their profit comes from the discount. They also use AWS Organizations to consolidate billing and get volume discounts. If they misconfigure IAM roles, they might inadvertently expose customer data. They rely on AWS Support (Enterprise) for technical issues. The APN provides them with a dedicated Partner Development Manager who helps them grow.
What CLF-C02 Tests on APN
Domain 4: Billing, Pricing, and Support, Objective 4.3: Identify AWS resources for support. The exam expects you to know:
The three partner tiers: Select, Advanced, Premier.
The two main partner types: Consulting and Software.
The purpose of AWS Marketplace.
The AWS Competency Program and Service Delivery Program.
That APN is free to join.
That partners can resell AWS services and earn discounts.
Common Wrong Answers and Why Candidates Choose Them
"APN is only for large enterprises." Wrong. Any company can join, but higher tiers require certifications and revenue. Candidates assume AWS is only for big companies, but the APN is open to all.
"APN partners get free AWS services." Wrong. Partners get discounts, not free services. Candidates confuse 'discount' with 'free'.
"AWS Marketplace is for AWS services only." Wrong. It's for third-party software that runs on AWS. Candidates think it's like the AWS Management Console.
"Consulting Partners sell software." Wrong. Consulting Partners provide services; Software Partners sell software. Candidates mix them up.
Specific Terms That Appear on the Exam
"Select", "Advanced", "Premier" tiers.
"AWS Competency" and "Service Delivery."
"AWS Marketplace."
"Partner Discount."
"Consulting Partner" vs "Software Partner."
Tricky Distinctions
Competency vs Service Delivery: Competency is for solution areas (e.g., Security), Service Delivery is for specific services (e.g., Amazon RDS). The exam may ask which program validates expertise in a specific area. Answer: Competency.
Resell vs Referral: Resell involves buying at a discount and selling; referral is just introducing a customer for a fee. The exam may ask how a partner earns money without handling billing. Answer: Referral.
APN vs AWS Support: APN is for partners; AWS Support is for customers. The exam may ask which program provides technical support to customers. Answer: AWS Support.
Decision Rule
If a question asks about partner categories, think: "Services = Consulting, Products = Software." If it asks about tiers, remember: "Select (2 certs), Advanced (4 certs, references), Premier (50 certs, revenue)." If it asks about earning money: "Resell (discount), Referral (fee), Software (marketplace)."
APN has three tiers: Select (2 certs), Advanced (4 certs, 2 references), Premier (50 certs, significant revenue).
Consulting Partners provide services; Software Partners build software listed in AWS Marketplace.
AWS Marketplace is a digital catalog of third-party software that integrates with AWS.
AWS Competency validates deep expertise in a solution area (e.g., Security, DevOps).
Service Delivery validates proficiency in delivering a specific AWS service (e.g., Amazon RDS).
Partners earn through resell discounts (5-20% off list price), referral fees (5-10%), and software sales (AWS takes 5-15% cut).
Joining APN is free; costs are incurred through certifications and meeting tier requirements.
APN is part of Domain 4 (Billing, Pricing, Support) on CLF-C02; expect 1-2 questions.
These come up on the exam all the time. Here's how to tell them apart.
Consulting Partner
Provides professional services like migration, consulting, and managed services.
Earns through resell discounts and referral fees.
Requires customer references and project track record.
Examples: Accenture, Deloitte, local consultancies.
Does not list products in AWS Marketplace.
Software Partner
Builds and sells software that runs on AWS.
Earns through software license sales via AWS Marketplace.
Requires technical validation and product support.
Examples: Splunk, Datadog, McAfee.
List products in AWS Marketplace for discovery and deployment.
Mistake
APN is a paid membership program.
Correct
Joining the APN is free. There are no upfront fees. However, partners must invest in certifications and meet revenue thresholds to advance tiers.
Mistake
Only large companies can become APN partners.
Correct
Any organization can join, including small businesses and startups. The Select tier has minimal requirements (2 certifications, 1 case study).
Mistake
AWS Marketplace sells AWS services like EC2 and S3.
Correct
AWS Marketplace sells third-party software that runs on AWS. AWS services themselves are purchased directly via the AWS Management Console or API.
Mistake
APN partners get AWS services for free.
Correct
Partners receive discounts (e.g., 5-20% off list price), not free services. They must still pay for the resources they use or resell.
Mistake
A Consulting Partner can also be a Software Partner without any distinction.
Correct
A partner can be both, but the APN categorizes them separately. Consulting partners focus on services; software partners focus on products. Each has different requirements and benefits.
To become an AWS Select Partner, you need at least 2 AWS Certified individuals in your organization and one published customer reference or case study. There is no cost to join. Once these are met, you can apply via the APN website. The Select tier gives you access to basic benefits like training discounts and marketing resources.
AWS partners make money in several ways: (1) Reselling AWS services at a markup after buying at a discount (5-20% off). (2) Earning referral fees (5-10%) for introducing customers who sign up for AWS. (3) Selling their own software via AWS Marketplace, where AWS takes a small cut. (4) Charging for professional services like consulting, migration, and managed services.
AWS Competency validates a partner's deep expertise in a specific solution area (e.g., Security, DevOps, Migration). It requires passing a technical validation and providing customer references. AWS Service Delivery validates proficiency in delivering a specific AWS service (e.g., Amazon RDS Service Delivery). It focuses on operational excellence for that service. Both are badges that help customers identify qualified partners.
Yes. A customer can buy AWS services through an APN partner. The partner can create a 'Private Offer' with a custom price that includes their margin. AWS bills the customer directly at that price. The partner receives a discount from AWS, and their profit is the difference between the discounted cost and the price charged to the customer.
No. AWS Marketplace is a digital catalog of third-party software that runs on AWS. You can find, subscribe, and deploy software like security tools or analytics platforms. The AWS Management Console is where you manage your AWS resources (EC2, S3, etc.). They are separate services, though you can access Marketplace from the Console.
The Premier tier requires at least 50 AWS Certified individuals (or equivalent through other certifications) and significant annual revenue from AWS-related business (typically over $1 million). Partners also need multiple customer references and a proven track record. Premier partners get a dedicated partner manager, executive access, and up to $50,000 in annual funding.
No. APN is for partners, not customers. Customers get technical support through AWS Support plans (Basic, Developer, Business, Enterprise). However, partners can provide their own support to customers as part of their services. AWS does not provide direct support to end users through APN.
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