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AWS Competencies: An Extremely Overlooked Sales Growth Lever For ISVs?

AWS Competencies drive up to 220% revenue growth, yet many ISVs overlook them. Learn how they boost sales, build trust, and unlock AWS co-sell opportunities—plus a checklist to see if they’re right for you.

By Jonathan Avital, Feb 18 2025
AWS Competencies: An Extremely Overlooked Sales Growth Lever For ISVs?

New data from AWS re:Invent 2024 reveals a direct and compelling link between AWS Competencies and partner revenue growth. According to AWS, partners with just one competency achieve an average 179% revenue growth, while those with four competencies see that number rise to 220% over two years.

Despite this, many AWS partners still haven’t pursued competencies—raising an important question: Are companies underestimating the ROI of AWS Competencies?

What Are AWS Competencies?

AWS Competencies are specialized designations awarded to AWS partners who have demonstrated deep technical expertise, customer success, and proven solutions in a particular domain. They cover a wide range of categories, including industry verticals, workloads, security, migration, AI/ML, and more.

Achieving an AWS Competency means your software is a validated preferred 3rd-party solution for AWS in the specific area.

AWS has 119 partner specializations – dozens of which are available to software partners. New ones are launching alongside AWS services—a clear sign that AWS sees competencies as integral to their ecosystem.

According to AWS’ VP of Global Specialists and Partners:

“87% of customers look at partner competencies to determine which partner to work with. The tech landscape is actually really complicated—they don’t know who’s an expert in what area, what industry, or which products they want to work with.”

Customers aren’t just passively noting competencies—they’re actively evaluating them as key selection criteria. In fact, 74% of AWS customers review their partners’ certifications at least twice a year—meaning partners without competencies risk being overlooked.

How AWS Competencies Directly Boost Sales

The numbers tell a clear story:
1 competency → 179% revenue growth
3 competencies → 218% revenue growth
4 competencies → 220% revenue growth

Even gaining one competency creates a significant lift. But why does this happen? Here’s how competencies translate into revenue:

► Stronger Customer Trust & Validation – Customers use competencies as a shortcut to identify credible, proven partners. Having these designations means less friction in the sales process because AWS has already pre-vetted your expertise.
► More Visibility in AWS Marketplace & Co-Sell Opportunities – AWS is doubling down on partners with competencies, offering them greater exposure, better placement in AWS Marketplace, and prioritized co-sell support.
► Easier Access to Enterprise Deals – Enterprises prefer working with validated, risk-mitigated partners. If AWS has recognized a partner’s specialization, it becomes easier to land larger, more complex deals.
► Deeper Alignment with AWS Itself – AWS actively invests in competency partners, providing them with stronger internal relationships, exclusive co-marketing benefits, early access to AWS programs, NDA roadmaps, specialized training, substantial MDF, AI-driven recommendations, and dedicated co-sell support.

Why Many AWS Partners Struggle to Obtain Competencies

Despite the clear revenue impact, many AWS partners overlook competencies due to the complex, resource-heavy process and underestimating their long-term sales value.

► Strict Requirements & Complexity – Achieving an AWS Competency requires technical validation, case studies, customer references, and AWS approvals—a process many partners lack the time or expertise to navigate.
► Resource Constraints – Many software businesses lack dedicated personnel to handle the process or the capacity to train their team.
► Short-Term Focus – Businesses prioritize immediate sales tactics, assuming they yield faster returns, while underestimating the high ROI of competencies in driving long-term revenue.

AWS Competencies are a proven growth lever, yet many partners struggle to invest in them effectively—leaving opportunities untapped.

Should Your Company Pursue an AWS Competency?

We’ve prepared a checklist to help you determine if pursuing an AWS Competency is the right move for your business at this time:
✔ You already deliver an AWS-based product that aligns with a competency type and category
✔ You have customer success stories and case studies demonstrating measurable results in the specific competency area.
✔ You want to increase sales and visibility within AWS Marketplace and co-sell programs.
✔ You have the capacity to invest in the certification process (even if you need a partner like CONNACT to streamline and accelerate the process)
✔ You’re aiming for long-term growth, not just short-term sales wins.
✔ You’re looking for a competitive edge, as 87% of AWS customers evaluate competencies before choosing a partner.

If you checked most of these boxes, it’s time to explore AWS Competencies seriously. Strategic guidance can help accelerate the process and maximize your return on investment.

The Bottom Line

AWS competencies aren’t just badges for marketing—they’re a direct revenue accelerator for partners who invest in them. With AWS increasingly prioritizing competency-certified partners, the question isn’t whether to pursue competencies, but how quickly you can start.

For AWS partners aiming to scale sales, deepen customer trust, and unlock co-sell opportunities, investing in competencies might just be the most overlooked yet high-impact growth lever in the cloud ecosystem.

CONNACT has been assisting AWS software partnersin identifying and obtaining AWS competencies through its dedicated Competency Acquisition Solution.