#3️⃣ of 7 key partner insights from 2022.
Partnering with cloud #marketplaces has emerged as one of the 🏆 top #GTM strategies in SaaS. Marketplaces are disrupting traditional channels, but only to an extent.
Cloud Marketplaces like Amazon Web Services (AWS), Atlassian, Microsoft, Salesforce, ServiceNow are now a natural place for B2B buyers and sellers to source SaaS and transact.
A few slides from re:Invent
🎯 Efficient for sellers
Increased visibility - cloud marketplaces are visited by a large number of users.
Easier customer onboarding - streamlined sign up process.
Reduced marketing costs - provide support and tools to promote your SaaS.
😎 Easier for buyers
One-stop shopping
Simplified billing and payments
Better integration and security
📈 Marketplace channel is expanding
Sellers in cloud marketplaces (Tackle.io research) are planning to expand both vertically and horizontally in 2023:
44% expect to transact 10%+ of their revenue via cloud marketplaces.
76% are planning to expand to 1+ additional Cloud Providers in 2023.
This channel is still relatively small - it’s transacting below 5% of ~$700B in B2B SaaS spend,
But spending via marketplaces is growing 100% YoY.
80% of Cloud 100 companies are expected to be selling via cloud marketplaces by 2024
💥 Will cloud marketplaces reshape #partnerships entirely?
They will undoubtedly change the picture, but not entirely.
In Tackle’s research, 83% of enterprises expect marketplace deals to have some channel partner involvement in 2023.
55% view channel partners as complementary to Marketplace
30% see #channelpartners as neutral
💡 We discussed this trend with Jay McBain, Chief Analyst - Channels, #Partnerships & Ecosystems - Canalys, in our recent episode:
"What ends up happening is marketplaces aren't killing anyone. Distributors continue to grow, even though AWS we predicted will become a top 10 distributor within the next couple of years. We have direct, which continues to be a big chunk.
We think by the end of the decade, marketplaces might be 1/3 of the economy, that's a couple of trillion dollars. That's big, but resell and through distribution, everything else is still going to be a couple of trillion dollars. It's just not going to grow as fast as marketplaces are...
📍 Marketplace has to be viewed as an expansion of your routes to market. And also complementary, because it also serves beyond the point of sale - some marketing help, some retention help."
Sources:
🏆 Check all 7 insights of 2022 here.