CXpose.tech summarizes a Canalys report that analyzes where hyperscaler marketplaces are going, and how they change among other things, procurement behaviors and strategies.
A recent Canalys Special Report titled “Now and next for hyperscaler marketplaces” provides a comprehensive analysis of the rapidly evolving hyperscaler marketplace ecosystem. The report, published in August 2024, offers valuable insights into how these platforms are fundamentally changing enterprise procurement behavior, vendor go-to-market strategies, and channel models in the software and SaaS industry.
The explosive growth of hyperscaler marketplaces, led by AWS Marketplace, Microsoft Azure Marketplace, and Google Cloud Marketplace, is reshaping the software industry landscape. In 2023, worldwide sales of third-party vendor products through these marketplaces more than doubled to $16 billion.
Canalys forecasts this figure to skyrocket to $45 billion by 2025 and reach an astounding $85 billion by 2028.
Takeaways
The Canalys report concludes that hyperscaler marketplaces are becoming a major force in the software industry, comparable to the impact of app stores in the consumer world a decade ago. The “cloud commit economy” is driving vendors to flock to these marketplaces, further strengthening the hyperscalers’ value proposition.
Enterprises are increasingly shifting large software deals to marketplaces, attracted by simplified purchasing, consolidated billing, and faster procurement.
However, the report also raises questions about the long-term sustainability of this model, particularly if it remains heavily dependent on cloud commitments as the primary driver. The success of these marketplaces will hinge on effective collaboration between hyperscalers, vendors, and channel partners, as well as continued innovation in digital integration and platform development.
An example of digital integration is AWS allowing channel partners to make marketplace offers to customers within a customized, private instance of the AWS Marketplace – on their own websites. Rather than the end customer being given a link to the private offer in the AWS Marketplace, this remains within the partner’s (or for the channel, the distributor’s) digital estate. This would be incredibly valuable for keeping the customer on a partner’s website for the entire buying journey.
As the marketplace landscape continues to evolve, it will undoubtedly have profound impacts on the IT industry. Stakeholders across the ecosystem – from vendors and channel partners to distributors and end customers – will need to adapt their strategies to thrive in this new paradigm of software procurement and distribution.
This article is based on Canalys’ report which can be found here).