Forbes: Leaders Using Cloud Marketplaces To Future-proof Their Business Models
Forbes – 4/10/23
Benjamin Laker Contributor
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Cloud marketplaces are becoming increasingly popular, suggests research undertaken by Gartner, which indicates that growth can be attributed to several benefits such platforms offer, including access to a wide range of third-party applications and services, integrated billing systems and simplified billing procurement processes.
Consequently, according to Gartner’s projections, it is likely that by 2026 most cloud platform providers and enterprise application vendors will offer component marketplaces to meet customers’ needs for reliable quality, convenience, and security. This sentiment is shared by Terence Mauri, founder of Hack Future Lab and MIT Entrepreneur Mentor. In an interview, he said, “Digital marketplaces are the future of innovation.” He added, “Tectonic shifts such as the move to optimized reality and Cloud marketplaces are impacting every company, which I call ‘Market Darwinism’, meaning the survival of the most fluid and adaptable.”
Naeema Pasha, a behavioral scientist who authored Futureproof Your Career: How to Lead and Succeed in a Changing World, offered a similar perspective. In an interview, she concluded, “With the recent tech layoffs—more people are considering becoming ‘techpreneurs’ and are looking to gig work in this arena—at least as a temporary route to rejoining a technology firm.”
Consider Accenture. The Financial Times reported that the company will “axe about 19,000 jobs over the next 18 months, the largest in a series of cuts across the consulting sector as companies battle rising costs and an uncertain economic outlook.” This news comes amidst Accenture’s decision to further invest in Google Cloud and its Global Marketplace, with the aim of helping customers accelerate their cloud migration efforts.
This trend may likely continue as businesses look to cloud-based solutions to meet their needs. And, as more companies move to the cloud, we will likely see an increase in digital marketplaces available. This, in turn, may effectuate opportunities for entrepreneurs and creatives to connect with customers and vendors more easily, creating a more efficient and secure way of doing business.
In an interview, Patrick Cronan, CEO of InVisory—a SaaS, or “software as a service” company—predicted cloud marketplaces will experience a massive boom in growth: a fifty-billion-dollar market by 2025. He believes when done correctly, leveraging cloud marketplaces can optimize internal costs and unlock increased growth potential. This is because marketplaces offers more flexibility—allowing leaders to access the latest technologies, services, and resources when needed.
“Typically, to purchase SaaS, there is a back-and-forth between an account executive and a sales leader, which takes a lot of time. Then, once an agreement is made, it goes through several processes—legal, procurement, cybersecurity, et cetera,” said Cronan. But, he concluded, with cloud marketplaces, consumers don’t have to experience these lengthy processes, which explains why millions of customers choose to purchase this way.
“Account management teams at companies like AWS, Azure and GCP are incentivized to sell ISV third-party solutions through their marketplaces, and in turn, SAAS companies now have an extended sales team for their products, increasing their revenue without having to make additional hires.”
This view is interesting because it suggests that as cloud marketplaces continue to expand, companies will increasingly rely on these platforms for their business needs: providing access to a growing number of services, products, and resources while streamlining the customer experience. This shift will likely give businesses more options at a fraction of the cost while ensuring high security and convenience.
That said, the growing popularity of cloud marketplaces presents critical leadership implications as organizations rapidly adapt to new business models and technologies. Leaders must embrace this “Market Darwinism” by fostering a culture of agility and adaptability within their organizations. This transition also presents an opportunity for leaders to empower “techpreneurs” and creatives, fueling innovation and growth within a company. And by doing so, leaders can help shepherd their organizations toward a more efficient and successful business landscape.
In conclusion, the rapid rise of cloud marketplaces is revolutionizing how organizations conduct business and adapt to new technologies. As these platforms become more prevalent, leaders must be proactive in embracing change, cultivating a flexible and innovative mindset within their companies, and taking advantage of the benefits offered by cloud-based solutions.
The era of cloud marketplaces presents a unique opportunity for businesses to thrive in a world that values adaptability, innovation, and efficiency. But, it is up to leaders to seize this opportunity and navigate their organizations towards a prosperous, future-proofed business model.
Article by Benjamin Laker Contributor
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