How to Leverage Cloud Marketplaces for Your Business

Learn about the pros and cons of selling your software solutions on cloud platforms

What are cloud marketplaces?

Cloud marketplaces are online platforms where customers can discover, purchase, and deploy software solutions that run on cloud infrastructure. Some examples of cloud marketplaces are AWS Marketplace, Microsoft Marketplace and Google Cloud Marketplace. These platforms allow independent software vendors (ISVs) to reach a large and diverse customer base, while also providing customers with a convenient and secure way to access software solutions that meet their needs.

What are the benefits of getting transactable in cloud marketplaces?

Selling your software solutions on cloud marketplaces can offer several advantages for your business, such as:

• Increased visibility and exposure: Cloud marketplaces can help you showcase your solutions to millions of potential customers who are already using cloud services. You can also leverage the brand recognition and trust of the cloud providers to boost your credibility and reputation.
• Reduced sales and marketing costs: Cloud marketplaces can reduce the need for expensive and time-consuming sales and marketing activities, such as lead generation, contract negotiation, invoicing, and billing. You can also benefit from the cloud providers' marketing campaigns and promotions to drive more traffic and conversions.
• Simplified deployment and management: Cloud marketplaces can streamline the deployment and management of your solutions, as customers can easily find, purchase, and launch your solutions from the cloud platform. You can also integrate your solutions with the cloud providers' tools and services, such as identity and access management, security, analytics, and support.
• Enhanced customer satisfaction and retention: Cloud marketplaces can improve the customer experience and loyalty, as customers can enjoy the convenience, flexibility, and scalability of cloud services. You can also offer customers more options and features, such as free trials, pay-as-you-go pricing, and automatic updates.

What are the opportunity costs of getting transactable in cloud marketplaces?

While cloud marketplaces can offer many benefits, they also come with some trade-offs and challenges that you should consider, such as:

• Increased competition and commoditization: Cloud marketplaces can expose you to more competitors and price pressures, as customers can easily compare and switch between different solutions. You may also face the risk of losing your competitive edge and differentiation, as cloud providers may offer similar or better solutions than yours.
• Reduced control and customization: Cloud marketplaces can limit your control and customization over your solutions, as you must comply with the cloud providers' policies and standards. You may also have to sacrifice some features and functionalities that are not compatible or supported by the cloud platform.
• Dependence and uncertainty: Cloud marketplaces can make you dependent on the cloud providers' decisions and actions, such as changes in pricing, terms, features, or availability. You may also have to deal with uncertainty and volatility in the cloud market, such as fluctuations in demand, regulations, or competition.

Opportunity cost of not transacting through cloud marketplaces

By not transacting through cloud marketplaces, you may miss out on some potential benefits, such as:

• Access to a large and growing global customer base that is looking for cloud solutions and services.
• Increased visibility and credibility for your solutions, as they are listed alongside well-known cloud providers and vendors.
• Reduced sales and marketing costs, as you leverage the cloud providers' platforms and networks to reach and engage customers.
• Faster procurement, simplified billing and payment processes, as you use the cloud providers' systems and policies to handle transactions and subscriptions.
• Access to pre-committed cloud spend, reducing the time it takes to get budget approvals from your customers to purchase your products.
• Enhanced customer experience and retention, as you offer seamless integration, deployment, and management of your solutions on the cloud.

You should consider the opportunity cost of not transacting through cloud marketplaces, and evaluate how it affects your competitive advantage and revenue potential. You should also monitor the trends and developments in the cloud market and adapt your channel strategy accordingly.

How do you decide whether to get transactable in cloud marketplaces or not?

The decision to get transactable in cloud marketplaces depends on several factors, such as your business goals, target market, value proposition, and resources. You should weigh the benefits and opportunity costs of cloud marketplaces, and compare them with other distribution channels, such as direct sales, resellers, or partners. You should also evaluate the suitability and readiness of your solutions for cloud marketplaces, and consider the strategic, technical, legal, and operational requirements and implications. Ultimately, you should choose the channel that best aligns with your business strategy and customer needs.

TL;DR

This post discusses the benefits and costs of transacting through cloud marketplaces, and how to decide whether to use this channel or not for business growth. You should consider business goals, target market, value proposition, resources and customer needs before committing to a cloud marketplace strategy, and compare cloud marketplaces with other distribution options. We also outlined some of the key requirements and implications of cloud marketplaces for software providers.