Especially if you sell on cloud marketplaces.

A recent UK CMA authority report offers a fresh analysis on how cloud customers are using their commitments with hyperscalers. It gives a glimpse into customer behavior and the ripple effects of commits on the ecosystem.

5 insights that caught my eye:

Commits cover significant share of revenue

Customers with cloud committed spend discounts (CSD) constitute significant share of each of Amazon Web Services (AWS) and Microsoft’s total UK cloud revenues:

“The evidence we have seen to date suggests that customers with a CSD represent a large share of each of AWS and Microsoft’s total UK cloud revenues.

It also suggests that while CSDs are not common across all users of cloud services, they are much more common for customers with higher spend.”

Large customers spending over $500K are more likely to have cloud commits.

Marketplace momentum

An ISV noted, "CSDs incentivise customers to buy third-party services in the larger providers' marketplaces."

When customers have significant contractual spend obligations, it's not just about discounts – it's about optimizing their committed spend, using cloud services and marketplaces.

Long-term nature of cloud contracts

"AWS CSD contracts vary significantly in length. They range from 0-2 to 6-8 years" and "Microsoft CSD contracts also vary significantly in length. They range from 0-2 to 8-10 years".

This highlights opportunities for long-term partnerships and solutions.

Search for Win-Win

Commits add some pressure on customers to consume cloud services and meet spend obligations:

"Some research participants describe how their companies use certain cloud services … for the sole purpose of meeting committed spend targets."

This suggests opportunities for alliance leaders to offer their 3rd-party services to help cloud customers meet commitments more efficiently.

Strategic insights

"A handful of customers also said that their growth plans were shared with cloud providers when considering or negotiating CSDs."

This means that clouds have unique insight into customer accounts and growth plans, opening doors for deeper, strategic co-sell.

These insights highlight a shift in enterprises’ approach to cloud adoption and buying third-party solutions through cloud marketplaces.

It's not just about technical fit – it's an opportunity for alliance leaders to align with customers' spend patterns and helping them maximize their cloud investments.

Are you fully leveraging the potential of cloud marketplaces in your GTM?