IDC’s recent AWS Marketplace study breaks down the numbers:

• ISV AEs open most opportunities: 44.8% sourced by ISVs

• Joint discovery (co-sell) with AWS: 16.7%

• AWS-only sourced: 10.1%

• The rest: APN partners 15.0%, self-serve/PLG 13.3%

At first glance, it looks like ISVs “do all the work” on marketplaces, while hyperscalers get the credit.

Here’s my read of the report—and why that interpretation misses what’s actually driving the 2X growth numbers.

The misconception killing marketplace strategies:

Many alliance leaders list in marketplaces expecting hyperscalers to source opportunities. When they get only a handful of deals, it feels like a failed promise. But origination and co-sell are fundamentally different jobs, and confusing them leaves the biggest growth lever unused.

Reality: co-sell + Marketplace are force multipliers after origination.

Most ISV-sourced opps become co-sell later to accelerate the cycle, retire commits, and speed procurement/legal via Private Offers.

Why Co-Sell and Marketplace drive faster growth (report data)

Sellers who co-sell report 2X software sales growth vs. those who don’t.

75% of surveyed sellers co-sell with AWS and see that lift. If you’re not co-selling, you’re leaving the biggest lever unused.

Marketplace businesses accelerate 41% faster

AWS Marketplace revenue grows ~41% faster than the rest of software for surveyed sellers.

Private Offers are the enterprise default (>50% of MP transactions)

More than half of AWS MP transactions are Private Offers; over a third of sellers’ reps have executed at least one

Marketplace KPIs are superior

Sellers cite shorter cycles (45%), faster cash collection (43%), more reliable payouts (48%), and stronger renewals (33%) vs. traditional motions.

Result? 23% of revenue through MP

Companies listed 55% of their portfolios. With nearly a quarter of revenue via MP, it’s now a core driver.

So what? Sourcing and co-sell are different jobs

Sourcing = open the door. Your AEs still generate most pipeline—by design.

Co-sell = finish the job. Pull AWS in to add account intel, credibility, learn about customer commits, get exec cover, and transact with a PO. That’s where the 2X shows up.

Yes, only ~10% of deals are sourced by hyperscalers and ~17% are jointly sourced.

Yet co-sell and Marketplace remain the growth engine because they change the outcome of the other 70% you sourced yourself.

Generate the pipeline; use AWS and MP to accelerate, de-risk, and close. That’s how companies already drive 23% of their revenue and growing.

Source: Research

Want the Marketplace Operator Playbook?

On Feb 24 (9–10am PT, online) we’ll break down how to turn cloud commits into Marketplace revenue - seller activation, CRO/CFO alignment, and templates you can implement this quarter.