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AWS Partner Proof of Concept Funding

If you are interesting in moving to the AWS Cloud but need to "try before you buy", you are in luck. AWS is so confident in the value their platform offers, they offer their consulting partners (like Metal Toad) the ability to draw on AWS Partner Proof of Concept (PoC) funding for any new potential workload. Here's how it works:

If you have a workload that you have not fully committed to AWS, AWS will provide funding for a Proof of Concept which is meant to "determine the feasibility of the AWS solution and verify the solution will function as envisioned." Sounds pretty good, but there are some catches:

  1. Funding limitations
  2. Validated partner

Funding limitations

AWS didn't become the 2nd largest software company in the world –$80B in revenue in 2022 vs. Microsofts $198.27B– by giving things away for free. Funding for Proof of Concepts are limited to 10% of the expected total Annual Recurring Revenue (ARR) for the workload being tested.  This means if you expect your company will spend $100K per year, AWS will fund $10k for a proof of concept.

There's a secondary limitation on funding as well: proof of concept funding is capped at $25K, no matter the size of the eventual workload.

AWS PoC funding details

Validated partner

Because they want the program to succeed and not run into technical issues, this funding requires the involvement of a validated (or better) AWS Partner. This is a technical term for where a partner is in their AWS journey, which can be seen below:

AWS partner validation path stages and resources

Metal Toad is a differentiated partner, which is the final, most advanced designation.

The PoC funding is used by the AWS consulting partner at NO cost to the customer, to build test, and validate the initial workload.

Why would they do this?

As the old saying goes, breaking up is hard to do. That's not only true in romance, but also true in Information Technology (IT). In the same way it's difficult to switch banks, once companies have tested out AWS, they are confident that they will want to stick with them.

And there's real money in moving to the cloud for companies that make the move too. On average cloud migrations reduce IT costs by 31% – and that's before including the 10% proof of concept funding. And that's tip of the iceberg. I've written before about a theoretical stock price checking application that could reduce their costs from $3.3M to $5.5K per month by switching to AWS Lambda instances vs. hosting the app on their own hardware.

What's Eligible for funding?

There are no real limits on the type of workload that is eligible for PoC funding, making this a great way to test the waters. Some examples could be:

No matter the project, it's always worthwhile checking with an AWS consulting partner to see if you could save 10% on your overall project. If you have questions whether your AWS project might be eligible, drop us a line.

Date posted: April 12, 2023

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Metal Toad is an Advanced AWS Consulting Partner. Learn more about our AWS Managed Services

About the Author

Joaquin Lippincott, CEO

Joaquin is a 20+ year technology veteran helping to lead businesses in the move to the Cloud. He frequently speaks on panels about the future of tech ranging from IoT and Machine Learning to the latest innovation in the entertainment industry.  He has helped to modernize software for industry leaders like Sony, Daimler, Intel, the Golden Globes, Siemens Wind Power, ABC, NBC, DC Comics, Warner Brothers & the Linux Foundation.

As the CEO and Founder of Metal Toad, an AWS Advanced Consulting Partner, his primary job is to "get the right people in the room".  This one responsibility is cross-functional and includes both external business development functions as well as internal delegation and leadership development.

A UCLA alumni, he also serves in the community as a Board Member for the Los Angeles Area Chamber of Commerce, the Beverly Hills Chamber of Commerce, and Stand for Children Oregon - a public education political advocacy group. As an outspoken advocate for entry-level job creation in tech he helped found the non-profit, P4TH, an organization dedicated to increasing the number of entry-level jobs in the tech industry, and is in the process of organizing an Advisory Board for the Bixel Exchange, a Los Angeles non-profit that provides almost 200 tech internships every year.


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