💎 5 Key Insights from Tackle’s State of Cloud GTM 2023.
We recently had in Cloud GTM Leader course insightful Sanjay Mehta, Chief Cloud Officer of Tackle.io, who explained key trends in cloud marketplaces from their recent research.
Here's why Cloud GTM should be a priority for partnerships/alliance teams and, maybe even more importantly, 📍 CXOs too:
1️⃣ The Surge in Marketplace Revenue
By 2026, marketplace revenue is projected to hit a staggering $100 billion, making up ~10% of B2B software spend. This ~100% YoY growth significantly outpaces the rest of the tech economy, marking cloud marketplaces as a critical channel for future growth.
2️⃣ Beyond Basic Transactional Relationships
There's a maturity shift in how ISVs view cloud partnerships today. It's no longer just about being present in the marketplace or basic co-selling. The focus now is on integrating these aspects into a cohesive strategy. If done right, it leads to faster sales cycles, larger deals, and higher close rates.
3️⃣ Proven Success
Major players like CrowdStrike and Wiz have shown the potential of cloud marketplaces. CrowdStrike's billion-dollar revenue through AWS marketplace and Wiz's rapid path to $100 million revenue underscore the value and scalability offered by marketplaces.
4️⃣ C-Suite Involvement is Key
What used to be an alliance-led motion now requires a C-suite support and holistic strategies. Over two-thirds of ISVs view advancing cloud partnerships as a crucial business driver.
"We're seeing CROs and CFOs really come to the party... It's a discussion in boardrooms."
5️⃣ A Diverse Participant Pool
Contrary to popular belief, it's not just startups engaging in cloud marketplaces. 50% of respondents in a Tackle’s survey were companies with over $100 million in ARR, indicating that larger, more established companies are actively participating.
📊 Cloud GTM evolves across company stages:
Early Stage Strategies
For companies under $10M, cloud marketplaces offer a streamlined entry into new markets and simplified procurement processes. It's about building from the ground up and finding the right fit in the cloud ecosystem.
Growth Stage Dynamics
Companies in the $11M-$100M range focus on acceleration and scaling their cloud programs. This stage is about identifying winning patterns and replicating successful strategies.
“I want to do deals faster. I want to simplify processes. I want to prepare to scale.”
Scaling at $100M+
For the big players, the strategy is all about “focusing on cloud incentives and cloud access there. How do I tap into those cloud budgets? How do I leverage the programs of the cloud providers?”
Watch the clip from our session for more.
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