Cloud Marketplace Stats You Need to Know for 2024
Cloud marketplaces are all the rage – and quickly emerging as the channel of choice for B2B buyers and sellers alike. With thousands of solutions available on Azure, AWS, Google Cloud Marketplace, and Salesforce AppExchange, ISVs are missing out on key selling opportunities if they aren’t listing and transacting. Don’t believe us? Check out these cloud marketplace statistics from top thought leaders.
Benefits of selling on top cloud marketplaces
Digesting the August 2024 Canalys Report on Hyperscaler Cloud Marketplaces
Earlier this month, Canalys released a new report predicting that cloud marketplace sales will hit $85 billion by 2028. Here’s what Canalys Chief Analysts Jay McBain and Alastair Edwards have to say. (Check out our webinar with Jay McBain on Tracking Success in Cloud Marketplaces).
Rise in cloud marketplace adoption
Cloud marketplace sales at hyperscaler marketplaces was $16 billion in 2023 and has continued to rise quickly and break analysts’ expectations.
65% (or almost ⅔) of partners are seeing cloud marketplace adoption.
By 2027, Canalys predicts that more than 50% of marketplace sales will flow through the channel
Cloud marketplace success stories
CrowdStrike, Snowflake, Palo Alto Systems, and Splunk were the first ISVs to generate $1 billion in revenue through AWS Marketplace, the industry leader.
Cloud commits
Fueling the boom in the cloud marketplace is the fact that B2B buyers have over $360 billion USD to spend on AWS, Azure, and Google Cloud. These multi-year commitments mean that many companies have unused cloud credits they can spend on third-party software through their CSP’s cloud marketplace.
Cloud committed spend as of Q1 2024
- AWS: $157.7 billion
- Google: $72.5 billion
- Microsoft: $129.2 billion
Keeping up with Roman Kirsanov at Partner Insight
Another goldmine of stats for cloud marketplaces is Roman Kirsanov’s Partner Insight newsletter.
Committed spend growth
According to a recent newsletter, “hyperscalers increased their customer revenue commitments to a staggering $370 billion” in Q2 2024. AWS held steady from Q1 to Q2, but Microsoft increased from $129.2 billion in Q1 to $134.5 billion in Q2. Google Cloud, who is going for the bronze in the cloud marketplace olympics, saw an increase from $72.5 billion in Q1 to $78.9 billion in Q2.
Azure is catching up with AWS, and Google Cloud is cementing its status as a cloud marketplace leader for startups in the AI and ML space. In terms of cloud marketplace revenue, AWS was $40 billion ahead in Q2 and just $22 billion this quarter.
The AI boom
Azure attributes 8% of its cloud marketplace 29% QoQ growth to AI.
“In this quarter’s earnings calls, AI was mentioned a staggering 168 times across Amazon, Microsoft, and Alphabet – more than 4X the mentions of capital expenditures,” Kirsanov explains.
Sales cycles
Companies with >30% channel revenue cut sales cycles by up to 25%. Why? Because people are more willing to close deals faster when partners are involved.
Selling directly? Expect to see sales cycles extend by 10% and become less likely to close.
Scaling up
If you want to scale your business to $250M+ in ARR, you’ll likely need your channel/partnerships revenue share to grow to 25%.
For infrastructure, fintech, and horizontal SaaS startups with >$100M in ARR, we see the following percentages of revenue coming from partners:
- Infrastructure – 33%
- Fintech – 28%
- Horizontal SaaS – 2%
Selling with Salesforce Partners – The Inside Scoop
According to Monique Hui, an ISV Principal PAM at Salesforce who joined Invisory for a webinar in May, this is simply not the case.
According to Salesforce’s own research, the benefits of selling with partners on the AppExchange include:
- Accelerating sales cycles by up to 20%
- Reducing prospects’ security and due diligence time by up to 80%
- Achieving the same marketing outcomes with 30% fewer resources
- Cutting infrastructure management costs by up to 75%
Invisory for Cloud Marketplace Success
Whether you’re an established ISV with a track record of success in cloud marketplaces like Azure, AWS, Google Cloud Marketplace or the Salesforce AppExchange, a brand new startup, or somewhere in between, Invisory can help you drive success on multiple marketplaces.
With our solution, you receive access to:
- API integrations that get you listed and transacting faster
- Expert-built playbooks for navigating the Azure Marketplace ecosystem
- Go-to-market templates and expert guidance
- Co-selling playbooks
- Dedicated customer success manager
- Support for developing a multi-cloud marketplace strategy
Ready to dive in? Reach out today.
