What's driving their growth and market buy-in? JFrog's cloud revenue and strategic marketplace focus.

JFrog cloud revenue hit $57M in Q2, up 45% YoY, now representing 45% of total revenue vs 38% a year ago.

But what caught my attention is how cloud marketplaces became their mega-deal engine.

CEO Shlomi Ben Haim revealed during the Q2 call:

"The collaboration with the cloud providers is very important because it helps us to accelerate deals, especially mega deals that are coming in, that mainly through the marketplace and with a lot of collaboration from AWS, GCP and Microsoft Azure."

It's not just co-selling, but also co-building:

"This is not just co-sell and partnership. This is also kind of co-services even when we are going with the customer, scaling with the customer" - he highlighted.

JFrog doubled down on cloud collaboration with AWS SCA

Amazon Web Services (AWS) Strategic Collaboration Agreement signed in February also emphasized marketplace:

"JFrog's agreement with AWS will directly benefit customers, delivering accelerated cloud migration and increased resources to help customers leverage AWS Marketplace for seamless procurement."

Customer Fortra confirmed the value: "procuring JFrog through AWS Marketplace has streamlined the acquisition process."

JFrog purchase obligations up >60%

JFrog's non-cancelable purchase obligations (which include cloud commits) jumped $30M+ in Q2 – from $48M to $80M, closely following this SCA announcement. Coincidence?

Meanwhile, CEO stressed their disciplined cloud strategy in Q2:

"we are optimizing the contracts with this hyperscaler... being very responsible to how we grow in the cloud.

So not just pushing the pedal all the way down, but also to do it in a responsible, smart way."

Possible explanation: new commits secured better economics.

Platform consolidation working at scale

55% of JFrog's revenues now come from Enterprise Plus subscriptions - customers are buying its platform, not just point solutions.

RPO surged 75% YoY to $477M, signaling customers' commitments.

Looks like multi-product are also resonating in large, multi-year marketplace deals.

AI tailwind is real but longer-term

JFrog's platform is now part of NVIDIA's Enterprise AI Factory validated design, where it's the central artifact repository and secure model registry for agentic AI/MLOps stacks. Exciting move.

3 lessons for alliance leaders

1. Marketplaces are the tip of the spear for "mega deals" - not just a procurement shortcut but as co-sell + co-services motion

2. SCAs create multi-faceted value - driving cloud migration, marketplace growth, and better economics

3. Platform strategies are clearly resonating with customers

What's your take?