Techaisle Blog

For decades, the channel partner model was built on a simple premise: arbitrage. Partners bought capacity or licenses at a discount and sold them at a premium, wrapping them in basic implementation services. They moved boxes, and later, they moved virtual machines. But in the AWS Agentic AI era, that business model is facing an existential crisis.

At AWS re:Invent last week, the message to the AWS Partner Network was clear: the era of generalist resale is over. At Techaisle, our data has been signaling this shift for a decade. According to Techaisle’s latest partner trends survey, AI adoption is fundamentally reshaping the demand curve for services. We are seeing a massive spike in demand for "AI/ML Management" (53%) and "AI-Infused Application Modernization" (41%). The partners are no longer a reseller of capacity; they are a Custodian of Business Context.

The End of "Discount-as-Strategy"

One of the most significant, yet quiet, revolutions at re:Invent was the overhaul of the partner incentive structure. In discussions with AWS leadership, it became clear that the traditional stackable discount model—often described by partners as a pleasant surprise rather than a predictable revenue stream—is being retired in favor of stability and cash.

The traditional procurement process for enterprise technology is a relic of a bygone era. It is linear, friction-heavy, and fundamentally disconnected from the pace of modern innovation. You cannot buy agile software with a waterfall procurement process. In a world where AI agents can write code in minutes, taking six months to buy the software platform to run that agent is an unacceptable bottleneck.

At re:Invent 2025, AWS demonstrated that it is no longer just a cloud provider; it is the one-stop shop of the B2B digital economy. What we are witnessing is the digitization of the supply chain—a shift that transforms the marketplace from a simple software catalog into a complex orchestration engine for multi-vendor solutions and professional services. This is not just an incremental update; AWS has effectively built a commercial operating system that the rest of the industry will spend the next decade trying to replicate.

The technology industry has spent the better part of two years fixated on the generative capabilities of artificial intelligence—its ability to create text, images, and code. However, at Techaisle, our data and conversations with CIOs suggest a critical plateau in enterprise adoption. Organizations are currently stuck in a phase of pilot purgatory, not because the models lack creativity, but because they lack agency. In fact, specific to SMBs and Midmarket firms, 34% have been experimenting for longer than six months. The ability to converse is valuable; the ability to act is transformative.

At this week's re:Invent, AWS signaled the definitive end of the chatbot era and the beginning of the Agentic Era. This is not merely a feature update or a rebranding of existing tools. It is a fundamental re-architecture of the enterprise technology stack that moves us from static, deterministic software to probabilistic, autonomous systems. For the C-suite, this transition demands a complete reimagining of compute economics, governance frameworks, and workforce planning.

The Physics and Economics of "Thought"

To understand the magnitude of this shift, one must look at the underlying physics of agentic workflows. The transition from a chatbot to an agent fundamentally alters the economic profile of cloud computing. In a traditional generative AI interaction, a user provides a prompt, and the model returns a single answer. It is a linear transaction.

An agentic workflow is exponentially more compute-intensive. An agent does not just answer; it reasons. It breaks a high-level goal into a plan, executes a tool call, perhaps encounters an error, updates its memory, replans, and attempts the task again. This is an inference loop. The industry is moving from a model of linear compute consumption to one of exponential inference demand, where the cost of the thought process—the reasoning time required to navigate a problem—becomes a primary driver of IT spend.

This economic reality explains why AWS is aggressively pushing its custom silicon strategy, as evidenced by the launch of Trainium 3 and the preview of Trainium 4.

Over the past four years, the IBM-AWS partnership has evolved into a unique success story. Unlike many other collaborations, this partnership is a complete 360-degree relationship, encompassing a wide range of collaborations. These two tech giants have achieved remarkable milestones in a relatively short timeframe. IBM Consulting, for instance, boasts an impressive number of AWS certifications (over 23,000) and competencies (19). They are also working together on the cutting-edge field of Generative AI (Gen AI). The partnership has fueled significant growth in adopting Red Hat Open Shift on AWS (ROSA), a native service within the AWS console, proving instrumental in IBM's hybrid cloud strategy. This strategy prioritizes co-existence between cloud and mainframe environments. The focus on collaboration extends to mainframe application modernization, where IBM and AWS have developed valuable patterns that showcase the combined power of these technologies. Additionally, a clear roadmap has been established for watsonx on AWS, with integrations underway with SageMaker, Bedrock, and other AWS products to accelerate Gen AI development and generate a wealth of practical use cases.

The partnership extends beyond just collaboration on specific technologies. IBM software is experiencing a surge in popularity on the AWS platform, with 29 products now available as-a-service offerings. This is part of a larger picture that includes 29 IBM software products and 44 transactable marketplace listings on AWS. The resell model for these offerings has also seen expansion, now encompassing five countries: the US, France, Germany, Denmark, and the UK. Furthermore, a two-tiered distribution model has been established in these countries with industry leaders like Ingram Micro, TD Synnex, and Arrow, further strengthening the reach of these combined solutions. Notably, a significant portion of IBM's partners are already established AWS partners. These partners recognize the value proposition of adding IBM solutions to their offerings, creating a win-win situation for all parties involved – IBM, AWS, and their partners, who can now deliver even more comprehensive solutions to their customers.

In the latest move, IBM and AWS have announced a strategic partnership that promises to reshape the landscape of AI and data technology. This alliance will provide partners and clients unprecedented access to advanced technologies, opening up new avenues for growth and innovation. The collaboration between these two tech giants means clients will now have enhanced access to IBM's robust AI and data platforms through AWS's expansive marketplace. This integration allows for the seamless adoption of sophisticated tools to drive business transformation. With IBM's technology becoming available on AWS, the marketplace is poised to expand significantly. Partners can leverage this opportunity to offer a broader range of services and solutions, catering to the diverse needs of businesses across various industries. The synergy between IBM's AI and data expertise and AWS's cloud infrastructure is expected to deliver enhanced business value. Clients can expect more efficient operations, improved customer experiences, and the ability to tap into new markets, thanks to the comprehensive solutions provided by this partnership.

The IBM-AWS partnership is more than just a collaboration; it's a fusion of strengths that will empower partners and clients. As the partnership evolves, we can anticipate a wave of innovation that will lead the way in AI and data technology, ultimately benefiting businesses around the globe.