Partnerships and channels have been the backbone of growth for software companies for decades. But the explosion of 🛒Cloud Marketplaces has changed everything.
How exactly?
Legacy partnerships, typically based on indirect sales channels, reseller and distribution agreements, have long driven scale in the software industry. While these partnerships often created significant returns, they also came with major risks and limitations, such as long time to revenue and growth.
📈 Efficiency and Scale of Cloud GTM
Enter Cloud GTM. With the rise of hyperscalers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, software companies now have access to unprecedented scalability and reach. Their cloud marketplaces are rapidly becoming the largest ecosystems where partners can co-sell, co-market, and co-innovate.
Cloud GTM speed and efficiency is compelling. Unlike traditional partnerships that can take months to finalize and roll out across geos, getting listed on a cloud marketplace is a relatively quick process.
This allows companies to tap into a global customer base quickly, achieve faster time-to-market, and accelerate their growth.
💰 Leveraging $348Bn in Committed Spend
A critical advantage of Cloud GTM is the access to pre-committed cloud budgets. Enterprises and increasingly SMBs are committing significant budgets to cloud services. They do that more confidently because they can buy additional products via cloud marketplaces. By leveraging marketplaces, ISVs can tap into these budgets, driving larger deal sizes.
For buyers, marketplaces create a simplified and consistent customer experience, whether it’s net new purchases or renewals.
🤝 Global Reach & Tapping into Thousands of Sellers
Cloud GTM also comes with enhanced discoverability both through marketplaces and access to cloud salesforce. In legacy partnerships, visibility often depended on the partner’s marketing efforts and fragmented customer base. In contrast, cloud marketplaces offer built-in visibility to millions of potential customers seeking solutions.
Additionally, hyperscalers have tens of thousands of field sellers that companies co-sell with. This inherent visibility and access could be a game-changer for software companies looking to expand.
📊 Despite these advantages, Cloud GTM does not come without challenges.
It requires a shift in mindset, willingness to adapt to new sales and marketing processes, and investment in new technologies. However, the potential rewards far outweigh the risks.
As cloud adoption continues to grow, the importance of Cloud GTM will only increase. The traditional partnerships, while still relevant, is no longer sufficient in an increasingly digital world.
Companies that embrace Cloud GTM unlock new growth and stay ahead of the competition.
Where do you stand on this?
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