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Emergence of alternative channels, VARs and cloud marketplaces, the biggest trend 🏆 in SaaS

As a software buyer, I no longer need to buy direct; I have options. According to G2: “Probably the biggest trend 🏆 that we've seen in #SaaS - exploring alternative #channels

There is an increase of 6% to buy SaaS from marketplaces

and 4% increase to buy from VARs

while a 9%🔻decrease in buyers who want to directly buy from vendors

☁️ On one side, you've got the global #cloud#marketplaces like Amazon Web Services (AWS) Marketplace and Azure Marketplace,

which are starting to provide an early stage B2C-type experience for buyers with their all-in-one shop.

🧰 On the other side, we've seen value-added resellers (VARs) emerge.

These aren't the VARs of old, who would just implement software.

Instead, these are typically service providers bringing SaaS into their portfolio of products and services to better serve their customers.

👀 As a software buyer, is it a better option for me to buy from a third-party cloud marketplace?

It depends on what you're buying and your organization. As you can see from the data, buyers are increasingly experimenting with cloud marketplaces like AWS Marketplace and Azure Marketplace.

There are various reasons for this.

✔️ In some cases, it's just easier to have a one-stop shop

where someone can manage multiple software subscriptions. You don't have to go to various vendor websites to manage that; it's all with one party.

✔️ You see this a lot with security as well.

AWS, Azure, and other marketplaces focus on security; they have the security standards and compliance in place, which makes people feel better about security as opposed to dealing with multiple vendors.

✔️ This is a trend we've seen, and we expect to see that continued increase into 2022 and 2023. It's definitely something for vendors to take note of regarding these alternative channels.

Thanks for sharing Chris Perrine!


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