Jay McBain's keynote in our recent event underscored a pivotal shift in cloud marketplaces, transitioning from an add-on to a core GTM strategy.
"At some point, 📊 one-third of your customers will prefer to buy there," he noted, highlighting a major market transition.
Jay McBain, Chief Analyst at Canalys and a leading voice in tech partnerships, delivered insights that blend strategy and tactics, making his keynote the one not to be missed.
📈 Marketplaces: A Net Addition, Not a Threat
"It's a net addition because it drives you to the more valuable, high margin, more revenue-generating parts of your business," Jay emphasized, underlining the unique opportunities presented by cloud marketplaces.
He focused on the evolving nature of partnering economics, where the role of partners extends beyond mere passing money to focusing on value addition, a shift now reinforced by marketplaces.
🎯 Forecasting Explosive Growth
The anticipated 86% compounded growth in cloud marketplaces, potentially surpassing $45 billion in transactions by 2025, highlights their growing prominence. This isn't a fringe trend but a central component of future GTM strategies.
💜 Adapting to Changing Buyer Behavior
Jay stressed that modern buyers, particularly millennials, show a growing preference for marketplaces. They favor procuring multi-layered technology solutions from a single source over multiple individual transactions. His analysis, journey mapping and research indicates a definitive trend towards marketplace-centric growth.
As cloud marketplaces grow, they will drive multi-layered solutions, from hardware to software to services. This new customer behavior offers an expanded canvas for partnership managers to innovate and create value.
💰 Transforming Partnering Economics
A standout point from Jay's keynote is the resetting of partnering economics. With marketplace fees now as low as 3%, akin to a credit card transaction, the focus shifts to reevaluating the partner's value throughout the customer journey.
“Guess what happened last week? AWS dropped theirs to 3% or less based on volume … now the three hyperscalers are all with public facing percentages on marketplace fees. What this does for the first time in 43 years is resets the economics of partnering.”
Watch the video for more insights.
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