How AWS Uses Partners as a Stepping Stone: The Amazon Basics Strategy in Cloud Services

Amazon has perfected the art of using its platform as a testing ground for innovation, a strategy we see both in its retail arm and Amazon Web Services (AWS). In retail, Amazon opens its marketplace to third-party sellers who bring customers and products to the platform, effectively expanding Amazon’s ecosystem. However, once a product category shows promise, Amazon often introduces its own Amazon Basics version, effectively cornering the market. This strategy isn’t limited to physical goods; AWS employs a similar approach in the cloud industry.

In AWS’s ecosystem, partners play the role of these third-party sellers. They innovate, create solutions, and bring their customers onto AWS’s platform, but much like Amazon Basics, AWS can eventually step in with its own competing cloud services. The benefits for partners, however, remain limited. Being an AWS partner often amounts to little more than having a listing on AWS’s marketplace, while AWS itself makes the real profit by selling the underlying virtual machines (VMs) that are essential for running the partner’s software. In many cases, AWS earns more from hosting the infrastructure than the partner makes from their own product. This imbalance is often unspoken in the industry, yet it remains the elephant in the room for many companies dependent on AWS​.

“In the long run, the partnership with AWS is mostly one way. Amazon partners often end up as little more than a 'stepping stone' for their customers to jump on the AWS wagon. While partners bring their innovations and customers to AWS, it’s Amazon that truly reaps the long-term rewards”

This approach is not new for AWS. When AWS first launched its cloud business, it ironically did so in response to its Oracle supplier abruptly raising prices. Amazon pivoted and started developing its own cloud infrastructure on its desktop PCs, launching AWS as a way to solve its internal problems and gain independence. This bold move is reminiscent of what we’re seeing today with Broadcom and VMware, where escalating supplier costs can force companies to innovate and build their own solutions to avoid dependency​

The Risks for Partners: The MediaKind Example

One cautionary tale is that of MediaKind, which partnered closely with Microsoft. When Microsoft took a significant stake in the company, MediaKind was encouraged to push its customers to switch to Azure Media Services. However, when Microsoft discontinued Azure Media Services, MediaKind was left in a difficult position. They had built their strategy around a partnership, only to find themselves scrambling for alternatives once Microsoft moved on. This example highlights the danger of relying too heavily on a tech giant whose strategy may shift at any time​.

The Elephant in the Room: Streaming Industry Silence

Despite the risks, few companies are willing to share these experiences publicly. Many are reluctant to criticize AWS openly, fearing that it may close doors for future opportunities, especially since many customers explicitly request AWS support. However, it's crucial to understand the limited benefits of being an AWS partner, as the partner’s role is often reduced to generating more revenue for AWS rather than seeing substantial growth for themselves.


iReplay.Tv introduced unlimited user-personalized channels in 2016. A similar feature (but limited to 50 channels) was introduced in 2024 by AWS Elemental Mediatailor as described here by Fabrice Pigeard.

At iReplay, we have deliberately taken a different approach. We’ve avoided integrating AWS into our core technologies, except when required by specific customer needs. However, this hasn’t stopped AWS from gradually rolling out AWS Elemental MediaTailor from 2020, a service that has increasingly incorporated features we’ve offered since 2014. Some of the people driving MediaTailor are Fabrice and Moulay, both of whom were once interested in becoming shareholders of iReplay.TV back in 2016 before they joined AWS Elemental. Now, under AWS’s banner, they are are promoting services that closely mirror our offerings. What’s important to note is that AWS’s objective isn’t just to sell MediaTailor’s features but to make related services like 'cash-cow' Cloudfront, S3 and other Elemental products almost mandatory for users, thereby embedding AWS even deeper into their workflows

Article written by
Sylvain Corvaisier

Independent streaming and iOS engineer

Last modified: January 27th, 2025