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#3️⃣ of 7 key partner insights of 2022. Partnering with cloud #marketplaces is now must-do in SaaS

#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 ( 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."


🏆 Check all 7 insights of 2022 here.

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