Brian Stavis, who is focused on Resell Strategic Initiatives at Google Cloud Marketplace, highlighted recent research showing that 50% of the marketplace revenue is expected to flow through channel partners by 2027.

Brian joined our Cloud GTM Leader course session to explain recent Google Cloud innovations on its marketplaces for Channel Partners.

He revealed why this might be the most underappreciated opportunity in Cloud GTM.

The Evolution of Marketplace Models

The initial marketplace model was straightforward: ISVs transacting directly with customers.

Recently, Google Cloud has made a crucial shift: "We've gotten into this stage of how do we drive and allow channel partners to lead the transaction?" explains Stavis.

What’s the significance?

Channel partners aren't just another route to market - they're creating "mini flywheels within the big flywheel" in cloud marketplaces.

Partners bring:

• Regional expansion opportunities

• Distribution networks

• Existing customer relationships

• Specialized industry expertise

How Google's Recent Move is Different from others

The new GCP marketplace channel private offers enables:

• Partner-level granular discounting

• Channel partners as billing owners

• End-to-end partner invoicing and collections

• Top-line revenue recognition for partners

Importantly, partners can now be "the partner of record," differentiating Google's approach.

Real Impact on Deal Sizes

In just ~6 months since launch, the data is compelling.

In one healthcare case, channel partner involvement transformed "a high seven, eight-figure deal to a nine-figure deal."

Why? Partners enabled bundling of software, services, and first-party cloud services.

Engage Partners First, then move them to Marketplace

A crucial insight from Stavis that caught my attention:

"A lot of ISVs make a misstep thinking, 'I'm going to get listed on marketplace and all the channel partners are going to come.'"

Instead, successful companies build on existing channel partnerships first, using marketplace as "the cherry on top."

Here's what makes you think:

Is the real marketplace growth strategy not about the marketplace itself, but about how well you can leverage your channel ecosystem through it?