Product Strategy for Winning on Cloud Marketplaces

How to refine your 🎁 product strategy for cloud marketplace to maximize Cloud GTM momentum and revenue via this critical channel?

Here's a practical 5-step framework to use.

This is part of our ongoing "7 Steps to Win in Cloud GTM" series co-created with Microsoft's Darren Sharpe. Check previous foundational steps - link in comments.

🎯 5 Marketplace Product Strategy Steps for Software Companies:

1️⃣ Segment Customer for Marketplace Success

Start by identifying potential customer segments most likely to purchase through cloud marketplaces.

For example, target enterprise clients eager to use their cloud commitments, or companies seeking standardized, secure, and consolidated software purchasing options.

2️⃣ Prioritize Your Best Products

To turn the marketplace into one of your key routes to markets, you need to build momentum. Avoid listing many unproven products that might not capture customer or cloud seller interest.

Instead, list your flagship products to attract customers and start co-sell with hyperscalers. Supporting your listings with a robust Cloud GTM strategy is crucial. More later.

📍 Pro Tip: Evaluate, If Multiple Top Products in Your Stack

Consider which products help cloud customers to simplify their journey to cloud modernization. Focus on them first and highlight this to hyperscaler sellers for better engagement.

3️⃣ Craft Enterprise-Grade Listings

Marketplaces today cater mostly to enterprises, handling large software deals, making it essential for your offerings to be enterprise-ready.

Most companies start and scale with Private Offers, if they sell on enterprises. ~85% of companies in our course use PO.

📍 Why Private Offers?

For ISVs: Easy to start, full control, and custom pricing flexibility.

For Buyers: Combines ability to negotiate and use cloud commitments with the convenience of standard marketplace contracts.

4️⃣ Enable SaaS Free Trial

Align your marketplace offerings with evolving buyer behaviors that favor self-service discovery.

Free trials also align with the typical sales process of most companies. Using them or similar experiences like proofs of concept through the marketplace can effectively capture demand.

Self-Serve "Land and Expand" Offer

Alternatively, use self-serve with an accessible price point to sell low-touch and expand later.

If your product isn’t suited for this “click to deploy” route (many aren’t), consider a “Consulting offer” to engage with prospects around their unique requirements and deployment.

5️⃣ Review & Sync Your Product Roadmaps

Align your marketplace strategies with your product and acquisition roadmaps.

Ensure clear communication across teams and use buyer personas to craft new and refine existing offers and pricing strategies effectively.

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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.

Join Cloud GTM Leader course