What Finance Teams Don't Know About the 25% Marketplace Limit

What Finance Teams Don't Know About the 25% Marketplace Limit

What happens when your customer (or your own company) hits a 25% marketplace spending cap on their cloud commitments?

What happens when your customer (or your own company) hits a 25% marketplace spending cap on their cloud commitments?

If you think it's game over—think again.

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Both Amazon Web Services (AWS) and Google Cloud cap marketplace purchases at 25% of customers' total cloud commitments (even if you're buying software build on their stack).

Some finance teams see hitting this threshold as a dead end—why keep buying through the marketplace if it doesn't reduce your commitment anymore?

Instead, turn additional marketplace spending into your secret negotiation leverage.

One of our Cloud GTM Leader course members suggested the counterintuitive answer on how sellers can frame this for their customers who buy on marketplaces above the limit:

You can position spending above the 25% cap as leverage for better renewal terms.

Companies exceeding the cap and demonstrating significant marketplace engagement signal strategic cloud commitment that hyperscalers value highly during contract negotiations.

This "excess" marketplace spend becomes data points showing you're building your entire software stack through their preferred channels and on their platform.

But the benefits extend beyond negotiation leverage on your next cloud contract.

Continued marketplace usage delivers budget consolidation, simplified procurement, streamlined vendor management, and pre-integrated solutions that reduce deployment friction.

These operational advantages compound regardless of commitment status.

The strategic reframe is powerful: instead of seeing caps as limitations, present your total marketplace spend as evidence of cloud-first strategy during renewals.

Hyperscalers recognize high marketplace volume as partnership depth, even if that spend doesn't count toward the 25% cap.

3 ways to leverage post-cap spending:

1️⃣ Track total marketplace spend, not just the capped portion for renewal discussions

2️⃣ Position excess marketplace activity as proof of strategic cloud alignment

3️⃣ Use spending patterns above caps to negotiate better discount tiers at renewal

What's your experience with hitting these spending caps? Have you tried turning them into negotiation advantages?

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Scale to $100M+
via Cloud Marketplaces

Join 5,000 GTM leaders

Weekly Newsletter

Join 5,000 GTM leaders

Weekly Newsletter

Scale to $100M+ via Cloud Marketplaces

© 2026 Partner Insight

Join 5,000 GTM leaders

Weekly Newsletter

Scale to $100M+ via Cloud Marketplaces

© 2026 Partner Insight

Join 5,000 GTM leaders

Weekly Newsletter

Scale to $100M+ via Cloud Marketplaces

© 2026 Partner Insight