So what is a cloud marketplace, anyway? History, benefits, examples
If you’re reading this article, you’re probably asking yourself, what is a cloud marketplace?
As someone that has worked in marketing at various ISVs myself, I only learned about cloud marketplaces after watching those companies getting listed on several cloud marketplaces. It’s not uncommon for folks working at an ISV to have no idea their organization is listed on cloud marketplaces at all or what that means to them.
Whether you’re working at an ISV that’s about to get listed for the first time, or just looking to learn more about cloud marketplaces, this blog post can help you get started.
What is a cloud marketplace?
A cloud marketplace serves as an online hub that empowers B2B buyers and sellers to come together to discover, evaluate, procure, deploy, and manage a wide array of IT, SaaS, and other solutions from various ISVs (independent software vendors), all within a unified environment.
Beginning in 2005 with the Salesforce AppExchange, cloud marketplaces like AWS, Azure, and Google Cloud have become the go-to B2B shopping destinations for businesses across tech, financial services, healthcare, life sciences, government, and education, with hyperscaler cloud marketplace sales expected to hit $85 billion by 2028.
Cloud marketplace history
When Salesforce launched the first cloud marketplace, the AppExchange, back in 2005, the CRM giant was catching on to an emerging trend in B2C selling: customers wanted to purchase goods and software in one easy location. The theory was tested with resellers and distribution companies like CDW, TDSynnex, Arrow and more. In the early 2000’s customers wanted more power to research, review and buy online without going through distribution channels.
After AWS and Azure launched their marketplaces in 2012 and 2014 respectively, the two hyperscalers added a twist: companies could become transactable and start using their cloud marketplace to exchange money. In this way, AWS and Azure began taking on the larger responsibility of managing international taxes, billing, invoicing, and legal contracts for their buyers and sellers. With the help of technology from Amazon’s successful B2C marketplace, AWS Marketplace was able to become the industry leader, overseeing 30% of all cloud marketplace transactions.
The new hyperscaler marketplaces adopted API technology, pioneered by AWS, to allow ISVs to manage billing, metering, and private offers on AWS, Azure, and Google Cloud Marketplace. This means that ISVs looking to get listed and transactable need to build API integrations or partner with a strategic cloud GTM partner like Invisory.
Today, customers on cloud marketplaces like AWS, Azure, Google Cloud, Snowflake can leverage cloud commits or committed spend budgets (money customers pay upfront to their CSP in exchange for discounts) to purchase third-party cloud marketplace solutions. This trend accelerated in 2021, when the hyperscalers began reducing their marketplace fee from around 20% to 3% or less, which helped to drive transaction volumes through the marketplaces. There’s even chatter that non-transactable cloud marketplaces like the AppExchange will head in the direction of AWS, Azure, and Google Cloud.
What is a cloud marketplace listing?
A cloud marketplace listing serves as the main cloud marketplace marketing tool for your organization. Think of it as your storefront on the marketplace in question.
To get listed, you’ll need to undergo a variety of security, technical, and legal reviews, as well as fill out the appropriate forms in your organization’s Partner portals and build any necessary API integrations. Then to optimize your listing, you’ll need to incorporate SEO keywords, images, well written copy, customer stories, and other assets to help you get the attention of customers and cloud sales reps alike.
While on Google Cloud and AWS getting listed means your solution is ready to transact, only some Azure listings are considered transactable. With Azure, non-transactable offers can be uploaded with simply a “Contact Us” CTA. This is more like the model on the Salesforce AppExchange, where listings are not technically transactable.
Benefits of selling on cloud marketplaces
- Access to customers’ committed spend budgets
- Faster sales cycles
- Streamlined procurement
- Easier renewal
- Co-selling opportunities with cloud sales reps
- Fewer missed payments (customers rarely don’t pay their CSP’s bill)
Examples of cloud marketplaces
- Atlassian Marketplace
- AWS Marketplace
- Azure Marketplace
- Google Cloud Marketplace
- HubSpot App Marketplace
- IBM Marketplace
- Oracle Marketplace
- Salesforce AppExchange
- ServiceNow Store
- Snowflake Marketplace
How to get started with cloud marketplaces
If you’re interested in listing on cloud marketplaces and selling with partners, start where your customers are. If you’re a CRM focused solution that addresses white space in Salesforce, the AppExchange might be the right fit. If your customers are all built on AWS, then listing on the AWS Marketplace is the way to go.
But listing is only the beginning. Once listed, you’ll need to develop a unique GTM strategy for each cloud marketplace. Hence, Invisory.
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.
