Digital and Cloud adoption has played a prominent role in the rising significance of Cloud marketplaces. What was once an alternative sales channel has now become a lucrative revenue stream, propelling the deals of the future. Leading this charge are the Hyperscalers – AWS, Azure, and Google Cloud. But they are not alone. Independent Software Vendors (ISVs), resellers/distributors, and industry-specific players have joined the race, launching their own marketplaces with innovative business models.
With the Cloud marketplaces space on an exponential growth trajectory, growing at a staggering 85%+ CAGR, it is projected to reach USD 150 Bn in 2027. From enhancing customer and partner experience to leveraging technologies such as Generative Al and Blockchain to innovating on newer marketplace iterations, players across the value chain have a razor-sharp focus on getting a piece of the Cloud marketplaces pie. In fact, it is estimated that by 2025, 60% of the Forbes’ Cloud 100 providers will actively participate as marketplace sellers, highlighting the widespread adoption and significance of this emerging business model.
Within these marketplaces, Infrastructure, Security, and Professional Services dominate the landscape, accounting for over 50% of the total listings’ share. Additionally, Machine Learning has experienced explosive growth, with listings in this category exhibiting a CAGR of over 120% in the last three years. This underscores the increasing demand for AI-powered solutions and the pivotal role they play in driving marketplace growth.
While Hyperscalers’ marketplaces offer a plethora of features, staying ahead of the curve demands futuristic features and agility. ISVs, in particular, have the potential to disrupt the Cloud marketplaces market by prioritizing security, offering managed packages, and micro-vertical solutions, and providing access to unique products. On the other hand, resellers and distributors will play a pivotal role in reaching local buyers and making inroads into highly regulated vertical markets such as Financial Services, Government, and Healthcare. Industry-specific players, like those in Telecom, stand out for their 5G and IOT-led products, bundling service offerings and forging joint go-to-market strategies and collaborations.
This Zinnov POV, “The Rise of Cloud Marketplaces,” takes an immersive look at the dynamic Cloud marketplaces landscape. Through an exploration of its evolution and a comprehensive view of Hyperscalers’ marketplaces and their unique advantages, we provide valuable insights into the broader marketplace ecosystem. We uncover the distinct positioning of other key players across various segments, revealing their future strategies and bets.