Did you know that IT buyers are now spending over 💳 10% of their budgets via software marketplaces?
BCG research revealed a significant shift in enterprise software purchasing.
The last Boston Consulting Group (BCG) IT Pulse survey highlights some eye-opening data:
🔺 The majority of IT buyers (55%) are spending at least 5% of their IT budget via software marketplaces, with a weighted average spend of significant 10.2%.
🔺 2/3 of these buyers expect to increase their marketplace spending, indicating a clear upward trend.
🔺 Only 5% anticipate a decrease in marketplace spending
These findings are based on a survey of 360 decision-makers at the Director level or higher. 65% representing large enterprises with over $1B in revenue and 35% from mid-sized companies. The geographic split was 60% North America and 40% Europe.
This data is from 2023, so the current numbers are likely even higher.
📈 But what's driving this surge?
It's a powerful mix of efficiency, budget accessibility, and convenience.
Marketplaces streamline procurement, often allowing businesses to tap into pre-committed cloud spend. In today's climate of scrutinized IT budgets, this advantage is game-changing.
📊 However, not all marketplaces are created equal.
Cloud hyperscaler marketplaces are emerging as clear winners, outpacing traditional SaaS platforms.
As BCG notes, "Cloud providers continue to operate the most popular marketplaces," while "marketplaces operated by individual vendors such as Salesforce and Atlassian are in decline."
Why?
It's simple. Cloud marketplaces have evolved into the largest ecosystems, offering a one-stop shop for diverse solutions while leveraging existing cloud commitments. This is a powerful combination that's hard to beat.
Looking ahead, the numbers are staggering. BCG forecasted that hyperscalers could collect up to $2B in marketplace transaction fees by end-2025.
But that's just the tip of the iceberg - they're anticipating "a further 3–5X in revenues from increased cloud consumption driven by marketplace activity."
🎯 Why is this data compelling?
This matters because it signals increasing hyperscaler marketplace adoption by the most valuable software buyers. And where buyers go, sellers will quickly follow.
For alliance and partnerships leaders, this presents both a challenge and an opportunity.
How are you positioning your products in these ecosystems that own an increasing share of enterprise customers' wallets?
And what's your take on the growing customer adoption of cloud marketplaces?
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