The growth of cloud marketplaces has been nothing short of remarkable, with the rapid adoption of digital and cloud technologies propelling their success. These marketplaces have evolved from alternative sales channels to major sources of revenue, attracting dominant players known as hyperscalers like Amazon Web Services (AWS), Azure, and Google Cloud. However, the market has expanded beyond hyperscalers, with independent software vendors (ISVs), resellers/distributors, and industry-specific players recognizing the immense potential and entering the fray with their own marketplaces, introducing innovative business models. This exponential expansion is reflected in staggering statistics, with projections indicating that the market is poised to grow over 85% and exceed the USD 150 billion mark by 2027, as revealed by Zinnov in its survey titled “The Rise of Cloud Marketplaces”. Evolution of cloud marketplaces Cloud marketplaces have evolved from being alternative sales channels to becoming significant revenue drivers, shaping the future of business deals. Over the past three years, these marketplaces have grown sixfold, prompting vendors to recognize their importance and establish their own platforms. As a result, the scope of cloud marketplaces has expanded to encompass diverse offerings, including Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), Artificial Intelligence and Machine Learning (AI/ML) products, verticalized solutions, and more. Hyperscalers lead the charge As mentioned before, the dominant players in this dynamic landscape are hyperscalers, such as AWS, Azure, and Google Cloud, which have played a pivotal role in shaping the evolution of cloud marketplaces. In the past two years, hyperscalers have constantly innovated and transformed their marketplaces into key strategic pillars. Current trends include expanding the ecosystem to include Consulting Partners, focusing on SaaS products, containerization, private offers, free trials, and emphasis on vendor and customer insights. While their platforms already have a wide range of features, they must continue to explore futuristic functionalities and remain attuned to the competitive landscape, enabling them to experiment and pivot in an agile manner. Trends expected to be seen in cloud marketplaces The future of cloud marketplaces is set to witness several transformative trends. These include: Streamlined procurement processes to enhance the customer experience. Utilization of AI tools for efficient onboarding of promising startups into partner programs and marketplaces. Implementation of automated processes to improve partner experience. Creation of a comprehensive ‘Super Marketplace’ on Supercloud, consolidating all hyperscalers into a single portal. Rise of specialized sub-marketplaces focused on AI, Security, and Sustainability. Factors driving product listing on cloud marketplaces Simplified, automated, and faster procurement lifecycles contribute to increased product listings. Blockchain technology facilitates hassle-free partner product validation, boosting confidence in the marketplace. Real-time customer support provided by Generative AI and chatbots enhances the overall experience for customers. Robust end-to-end security measures instill trust and encourage businesses to list their products. Enterprise discount programs (EDP) incentivize long-term and high-commitment partnerships. Enhanced transparency in cloud marketplaces fosters trust and encourages product listings. Streamlined onboarding processes make it easier for vendors to list their products on the marketplace. The availability of custom marketplace offers provides flexibility for vendors and attracts a diverse range of products. AI tools are used to identify and onboard high-potential startups, expanding the variety of offerings in the marketplace. Cross-selling and up-selling opportunities within the marketplace encourage vendors to list their products. Collaboration and co-innovation of packaged bundles or solutions create value for both vendors and customers, driving product listings on cloud marketplaces. Role of ISVs, resellers, and industry-specific players Within the cloud marketplace landscape, independent software vendors, resellers, and industry-specific players play crucial roles in the evolution of cloud marketplaces. ISVs prioritize security, offer managed packages and micro-vertical solutions, and provide access to unique products, positioning themselves as disruptive forces. Resellers and distributors, on the other hand, play a vital role in reaching local buyers and making inroads into highly regulated vertical markets such as financial services, government, and healthcare. Industry-specific players, especially in the telecom sector, excel in offering 5G and IoT-led products, bundled service offerings, and joint go-to-market strategies. The growth of cloud marketplaces has been remarkable, transforming them into major revenue streams and driving the future of business transactions. With the emerging trends and factors fueling the surge in product listings, the cloud marketplace industry is poised for further growth and disruption, presenting exciting opportunities for businesses and customers alike. Source: Zinnov Read next: India’s internet economy set to touch $1T by 2030, reveals Google, Temasek and Bain & Company
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