Being a vendor or channel partner without a cloud marketplace strategy in 2024 is like having an eBay store in 2004 without PayPal, or being a mobile app company without the Apple AppStore in 2014.
It’s not looking good for you!
Cloud Marketplaces aren't just an industry trend that ISVs and channel partners need to adopt to avoid being left behind; they offer significant advantages, many of which are well documented.
But some less so…
Here are 7 major Cloud Marketplace Advantages for GTM teams that I think are less spoken about:
- Customers are incorporating marketplace spending into their cloud commitments. This allows them to maximize the economic benefits of larger commitments while reserving funds for tech investments. Smart sellers will identify and align with this budget.
- Modern buyers are Digital-First buyers who are much more enticed to “click to buy.” These buyers are often found outside of IT departments and in smaller businesses that see the benefits of the cloud marketplaces despite not having any cloud commits.
- Procurement's IN - Procurement execs are seeing cloud marketplaces as a way of consolidating their cloud spend. Turn this to your advantage by introducing marketplaces early into your deals. Not only to avoid confusion and complexity at the procurement stages, but also to influence the customer's Economic Decision Criteria, differentiating yourself in the process.
- Co-Selling - Cloud marketplaces often have deep relationships with their customers and, with the right approach, can provide invaluable introductions and insights. This is the biggest advantage in my opinion.
- Free Champion - Every company will have a person who stands to benefit from procuring via a cloud marketplace. Find that person, and you could have a free Champion waiting to be activated for you.
- Free budget - Canalys reports that customers often overcommit their cloud spend, creating an opportunity for tuned-in ISVs and channel partners to 'Burndown' spare committed spend towards their solution purchase.
- The channel is IN and going 📈 - Canalys predicts that by 2027, over 50% of marketplace transactions will be via the channel, a stat marketplace trailblazers CrowdStrike are already eclipsing, stating that over 70% of their marketplace purchases are via their channel partners.
Channel partners can become trusted advisors by guiding their customers in adapting procurement strategies, highlighting the key benefits of marketplaces, and determining which software should be moved to which cloud marketplace provider.
All of these things, along with the well-documented benefits, such as larger deals, simplified purchasing, consolidated billing, faster procurement, lower deployment costs, more security and compliance, and many more, are reasons you absolutely cannot be caught sleeping on your Cloud Marketplace GTM Strategy.