What to Know About CPPO

Scott Mellegaard on Feb 4, 2019

Don't leave your software resale partners out in the cold! Learn how AWS' new Consulting Partner Private Offers Program finally opens up the Amazon Web Services Marketplace catalog to the reseller community and how Tackle can help you manage those teams.

AWS, the Reseller Channel, and transactions on the AWS Marketplace – three things I never guessed would be said in the same sentence. In late 2018, AWS Marketplace launched the CPPO program (Consulting Partner Private Offers), focused on enabling the reseller community to participate in the rapidly expanding and wildly successful software procurement and deployment process that is AWS Marketplace.

At Tackle.io, our expanding customer base of Independent Software Vendors (ISV), who have a substantial and loyal reseller community, are deeply concerned about the go-to-market conflict between their aggressive AWS Marketplace growth strategy and their traditional partner sales channel. In our previous blog post, Christine Maxey (VP of Customer Success at Tackle.io) discussed in detail on how ISVs can extend enterprise discounts on their AWS Marketplace listing using seller private offers. With the new CPPO program, channel partners can extend that SAME strategy and offer procurement benefits to THEIR customers using the AWS Marketplace. At Tackle.io, we see daily transaction volume in our ISV customers accelerating throughout the largest US companies and expanding into international markets.

As someone who has worked in the channel for over 15 years including the AWS partner manager for a national VAR, the Cloud GTM Director for an Global ISV, and now Business Development for VC and PE sellers, the CPPO launch immediately incited curiosity around the question, “How does CPPO work and how can we help both our ISV customers and their channel resellers in this program.”

The Setup

In order to drive success with CPPO, there are a few important foundational steps. First, a SaaS or AMI product must be listed for sale on the AWS marketplace with Enhanced Data Sharing (EDS) enabling the ability to create Seller Private Offers. (BTW, Tackle.io’s Upstream engine handles your AWS Marketplace SaaS URL entitlement API’s and customer registration pages and helps ISVs fast track their listing without engineering involvement, so please ask how we help)

Second, the ISV must invite the channel reseller to their CPPO program. Negotiations between the ISV and the channel partner on product discounts can either be a “blanket discount” to the partner (eg: 30%) or by unique discount for an individual negotiated opportunity. Reseller discounts are supported on both AMI and SaaS listings, and include even the new CCP overage listing type (Contracts with Custom Pricing).

Side-note: One of Tackle’s unique specialties is allowing our ISV customers full support for AWS metering services, without complex engineering modifications, using our “Manual Metering” option built into our Downstream platform (shout-out to our amazing engineering team). This simplified solution for metered billing opens up LOTS of customer pricing models regarding monthly or ad-hoc contract overages. At Tackle, we want to simplify all options for ISVs looking expand their AWS Marketplace listings using their existing product pricing strategies. Our Downstream platform support for metered pricing is making life easier for many engineering and sales operations teams today.

The Transaction

Third, now let’s review the flow of a transaction from a quote for a customer all the way to payment collection and cash disbursements. Once all CPPO agreements are in place, the reseller signs a Transaction Request Form (TRF) with the end customer which includes information about the transaction, specifically the product being sold, the price of the Private Offer as set by the reseller to the end customer, and any custom terms. After receiving the TRF, the AWS Marketplace customer desk will create the private offer for the reseller. The reseller then sends the unique marketplace URL to the customer for purchase.

As we meet with AWS Marketplace engineering teams almost daily, we know many AWS Marketplaces improvements schedule for later this year including having the reseller will be able to do most of this themselves through the “seller creates” feature. We think this is going to be great feature simplifying the process and improving the experience for everyone involved with the customer’s solution.

Fourth, the end customer clicks on the marketplace URL and accepts the private offer contract. This is where Tackle’s Upstream API SaaS platform (doing all the engineering needed by the SaaS URL) gets to work processing the entitlement token, the ISV branded customer registration page, and sends notifications (either email, Slack, SalesForce and many others) the offer has been accepted and the standard customer ISV provisioning begins. The transaction dollars are then placed on the customers AWS monthly bill (or scheduled) streamlining the financial operations for the customer, the reseller channel, and the ISV.

Finally, after the customer pays their AWS invoice, the funds are disbursed (including collected sales tax) proportionally to each the ISV and the reseller (eg: 25%/75%) less AWS Marketplace fees. This is similar to the traditional reseller “cost plus” sales model, but follows the financial flow of the typical Amazon.com marketplace product sale. We are working with the AWS Marketplace CPPO team to expand to other reseller pricing models like “guaranteed margin” and “influence revenue” and my guess is that these offerings are on the very soon horizon. Please keep checking in for future posts from the Tackle CPPO team!

Sales Reporting for Finance Teams

Our customers comment their back-office teams are most excited about our unified Downstream reporting platform. Downstream enables ISV’s internal sales operations and accounting team in-depth visibility into all the details of each financial transaction lifecycle in a simple-to-use and easy-to-understand reporting dashboard. Our customers mention Downstream is a “lifesaver” on how the platform stitches the details all the moving parts of the transaction between multiple parties like sales tax, fees, and disbursement dates. Even sellers outside of the Tackle Upstream platform can take advantage as we can plug-into any CAS and EDS enabled listing.

This is all to say that AWS Customers, Resellers, and ISVs all win with the CPPO program on AWS Marketplace. BTW, you can buy Tackle Upstream, Downstream, and many more solutions from Tackle on our AWS Marketplace listing. The entire team at Tackle.io is dedicated to successful AWS Marketplace transactions for both ISVs and CPPO channel resellers, acting as your “Tackle Guide” in all things AWS Marketplace. Please reach out to us at sales@tackle.io and let us know you read this post!

PLEASE NOTE: we are actively looking for successful resellers who want to advise us on our evolution of Tackle’s Deep Channel™ dashboard for channel partners who may offer multiple AWS Marketplace ISV solutions.

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