“Channel leaders are turning their attention to cloud marketplaces 📈 as the future of partnerships,” reports a top VC/investor managing $83.5Bn.
Here's what you need to know to succeed in Cloud GTM
A recent ICONIQ Capital study on SaaS GTM 2024 reveals that a staggering 47% of software companies are using marketplaces of Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.
But navigating these hyperscaler ecosystems can be challenging.
Here are 6 crucial lessons for succeeding in cloud marketplaces, based on insights from companies like Drata and Glean:
👨💼 Start from the customer
Don't just default to your cloud provider - consider which marketplace best reaches your ideal customers
Infrastructure & security companies often prioritize AWS for its strong CIO/CISO relationships
Application software companies targeting CFOs or revenue buyers often favor Azure given Microsoft's strong ties in those areas
Analyze your ICP and map it to the hyperscaler with the best connections to it
🛒 Master one marketplace first
Resist the temptation to pursue multiple marketplaces at once
Focus on building a strong, predictable revenue stream with one marketplace before expanding
Develop a scalable partner enablement program to set the stage for future expansion
Once a successful playbook is ready, "companies tend to move towards a multi-marketplace approach by selling through 2-3 marketplaces at the same time.“
🤝 Tap into your network
Startups can leverage VC connections to get on the radar of hyperscalers if they lack established relationships
Learn from operators and companies who have successfully navigated these marketplaces. Don't hesitate to ask for help
🎯 Cultivate insider relationships
Treat marketplace partnerships like enterprise sales - identify and build relationships with key decision-makers
Hire team members with experience and existing relationships in your target hyperscalers
Multi-thread within the organization, connecting with partner reps and other key stakeholders
Invest time in becoming an "insider" to gain visibility and advocacy within the marketplace ecosystem
🛠️ Invest in operational readiness
Dedicate 1-2 people early to operations, billing, and marketplace backend- don't wait until you're overwhelmed
Marketplace billing is nuanced and may require separate systems /processes
Implement a CRM lead sharing and revenue attribution for partner-sourced and partner-involved deals
💡 Enable partners like your own sales team
Train cloud partners on your ICP, product features, use cases, and messaging - just like you would train a new sales hire
Repurpose existing sales enablement, customer success, and onboarding resources
For complex products, leverage solutions architects and sales engineers for hands-on technical enablement
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📈 Accelerate your Growth in Cloud Marketplaces
Transform your marketplace strategy with first-hand insights from Cloud GTM leaders in our 5-week cohort course. Learn in a community of great alliance leaders. Join 100+ alums from companies like GitLab, Darktrace, IDC and others.
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