10% of IT Budgets Now Flow Through Marketplaces: Are You Capitalizing?
Position for success with 360° Enablement Strategy & join top Microsoft and industry leaders on July 23 to unlock your share
Hi, it’s Roman from Partner Insight. Welcome back to my newsletter, where I break down winning Cloud GTM strategies and the latest trends in tech partnerships.
Today, we’re diving into a game-changing insight: enterprises are now spending over 10% of their IT budgets through digital marketplaces. This evolution is pivotal, but without effective Sales Enablement Strategies, tapping into this potential remains a challenge. That’s why I’m sharing the 10 Rules of Effective Sales Enablement from one of the industry’s top experts.
Before we dive in, don't miss our exclusive free online event on July 23, "Accelerate Growth with Microsoft Marketplace & AI". With FY2025 just starting for Microsoft, this is an unmissable opportunity to learn recent trends and gain insights that could transform your cloud GTM strategy.
Scroll below to learn more or register on the event page here:
Now, let’s explore how marketplaces capture IT budgets and how to enable your sales and other functions to get the most out of your cloud GTM efforts.
Marketplaces Capture >10% of Enterprise 💳 IT Budget Spend
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%.
67% 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?
🎯 Join our free online event with Microsoft on July 23 to learn how to scale your cloud GTM in FY25 with co-sell and the partner ecosystem, powered by the marketplace.
You can also find BCG research here.
Now, let’s discuss how to make Cloud GTM work for your company.
360 Degree Sales Enablement Strategy in Cloud GTM
Why does everyone focus only on executive buy-in to achieve success in cloud marketplaces, when 💡 true scalability demands so much more?
We were delighted to have Kate Kwiatkowski to give in our Cloud GTM Leader course a masterclass in cross-functional enablement. She leads Global Cloud Alliances at JFrog, and her impressive track record includes leading the RedHat Marketplace at IBM, Ecosystem in Tackle, and marketing at Amazon Web Services (AWS).
Kate emphasized that scaling Cloud GTM requires an Enablement strategy that extends beyond the C-suite and Sales (the key pillars) to include:
Marketing
Finance
Product
Solution engineering
RevOps and SalesOps
Legal
Strategy
Channel
Business Applications team
But first, what is Enablement?
3 Elements of Successful Cloud GTM Enablement Strategy
1. Start with WHY
"For me, enablement is empowerment. It’s about consistently taking action to, for example, create fantastic customer references, or to highlight key seller wins, and help other sellers and teams internally understand how Marketplace helps close a deal more quickly.
It’s about using data to understand the true bottom and top-line impact of Marketplace while working with finance.
Or it's helping our product team understand the potential opportunities more deeply within the Cloud's tech stack that they can utilize to help us fulfill our roadmap vision.
So enablement for me always comes back to the WHY."
Once you've established 'why,' the 'how' becomes crucial - you need to create a continuous enablement process that goes across teams.
2. Communicate Continuously and Proactively
Continuous education and support for sales and other teams are crucial, as it keeps them updated on evolving marketplace strategies, features, and priorities. You want other teams within your company to understand your company cloud alliance strategy and advocate for you as well."
"One thing I've learned in my career has been how important it is to continuously enable your sellers and to look at it as always moving, always changing." - Kate notes.
This means not just doing one webinar “and then letting it sit, but continuously scheduling a cadence of enablement calls, joining QBRs…just being very visible” - she explains.
3. Engage Both Internal Teams and External Cloud Teams
Kate's strategy also underscores the importance of engagement with the hyperscaler teams.
"This is something at JFrog we've been really focused on is making sure that we have a constant cadence with our AWS team around what we're looking to do with integrations and co-builds," she explains, highlighting how JFrog incorporates proactive dialogue with cloud teams into its co-build strategy.
This dual focus—internal and external—ensures that all stakeholders are aligned and effectively support the marketplace strategy.
This newsletter is supported by Clazar, who also helped bring you our event, "Accelerate Growth with Microsoft Marketplace & AI" on July 23.
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Kate's 10 Rules of Effective Sales Enablement
Why is CONTINUOUS sales enablement critical to scaling Cloud GTM? Simon Church helped to further distill Kate’s insights:
Cloud marketplaces (MP) could be central to your company's success. They can help sellers close deals faster and meet or exceed quotas. However, cloud GTM is NOT a primary focus for sellers, who concentrate on their accounts and customers.
Therefore it’s Alliance leaders goal to ensure sellers grasp the benefits and importance of MPs. But how?
Here are Kate's 10 Rules of Effective Sales Enablement:
1️⃣ Regular and Continuous Efforts
Understand seller focus areas and keep cloud strategies top-of-mind without overwhelming their inboxes & calendars. Help them integrate cloud GTM early in sales cycle.
2️⃣ Go Beyond One-off Sessions
Include scheduled enablement calls, join QBRs, and maintain consistent communication. Ongoing sessions and follow-ups are vital to prevent “out of sight, out of mind” issue.
3️⃣ Deliver Enablement in Various Formats
Use short on-demand videos, longer recordings, and in-person events to cater to different learning preferences.
4️⃣ Create Easy-to-Reference Guides
Create cheat sheets and central source of truth for sellers on key topics, e.g. “how to co-sell” or “GTM via MPs”.
5️⃣ Establish Central Communication Channels
Use platforms like Slack to send Cloud GTM updates and facilitate collaboration and marketplace experience sharing among sales teams.
6️⃣ Provide Guidance for Co-Selling
Offer support on how to win in co-sell calls, including what questions to ask, how to show up, and what NOT to do.
7️⃣ Leverage Customer Stories and References
Use success stories to build credibility with sellers and get them excited. Compelling customer examples can help sellers internalize how MPs can expedite deal closures.
8️⃣ Identify and Leverage Successful Sellers as Advocates
Boost credibility by inviting sellers successful in Cloud GTM to share their stories in regular meetings. Developing internal advocates creates powerful peer influence. You can then across different motions or industry focuses can also be effective, ensuring relevance.
9️⃣ Conduct Research for Sellers
Gather insights to empower sellers before engaging in conversations with key stakeholders at the cloud provider.
1️⃣0️⃣ Seek and Act on Feedback
Encourage open communication and actively incorporate feedback from sellers and sales leadership to support them where they need it the most.
Implementing ongoing sales enablement is essential for scaling Cloud GTM effectively. By integrating regular training, providing accessible resources, and fostering collaboration, you can get sales teams excited and aligned with cloud marketplaces. This can help them meet quotas, make customers more successful and significantly contribute to company growth.
Want to dive deeper into how to unlock your Cloud GTM?
💎[Exclusive Event] Accelerate Growth with Microsoft Marketplace & AI
Join us on July 23 for our free exclusive online event featuring keynotes from Ryan Storgaard and Jay McBain, the top thought leaders in cloud marketplaces!
Learn how to scale your cloud GTM in FY25 with co-sell and the partner ecosystem, powered by the marketplace.
Two Incredible Keynotes:
💡 Keynote from Ryan Storgaard, who leads the Microsoft marketplace growth product team
Ryan is critical to the acceleration of the marketplace business:
🔼 100% YoY sales growth with billions sold in FY24
🔼 7x YoY increase in visits to transactable AI offers on marketplace
🔼 140+% YoY growth in transactable AI offers published
With more than two decades of experience, Ryan Storgaard has worked extensively with software development companies to empower their success across Microsoft Azure. He’s also the recipient of the prestigious 🏆 Microsoft Chairman's Award and a member of Microsoft’s Circle of Excellence.
📈 Keynote from Jay McBain, Chief Analyst - Channels, Partnerships & Ecosystems at Canalys
Jay was the first analyst to recognize the shift to cloud marketplaces years ago.
He forecasts 2024 to be another tipping point:
🗽 Three recent predictions from Jay:
Cloud will double in the next 4 years. “Public cloud will surpass $300 billion in revenue in the next 12 months…fueled by AI, it will grow to $590 billion by 2028.”
Buyer demographics is shifting: “By the end of the year [2024], the majority buyer of that $5 trillion [tech market] will be a millennial, born after 1982...they're digital first, or in many cases now digital only.”
This will drive explosive growth in cloud marketplaces: "It's going to be life-changing and impactful, and as a company, you've got to be on the front edge of that - for your new buyer for the next 10 or 20 years... And there's no other alternative," Jay notes.
And there’s even more to anticipate at our special event with Microsoft.
💡 Two engaging panel discussions
Alongside our incredible keynote speakers, learn from two engaging panel discussions with 5 outstanding Cloud GTM leaders in each:
Panel on Building Successful Co-Sell with Microsoft Marketplace
Panel on Partnering with Ecosystem to Accelerate Cloud GTM Growth with Microsoft multiparty private offers (MPO)
📅 Join us on July 23, from 9-11 AM PT
In just two hours, 12 top experts will share their insights that could transform your cloud GTM strategy.
This event is FREE - share it with your network.
See you there!
Thank you to our partner Labra for helping bring this event to you for free.
Labra is a leading Cloud GTM Platform for ISVs, Channel Partners, and Cloud hyperscalers. Its unified platform integrates with Cloud Marketplace and Co-sell platforms while enabling alliance and sales teams to function from their existing CRMs.
Labra seamlessly integrates and synchronizes data across CRM and CSP portals, providing a single pane of glass view of all your Cloud Sales and GTM Operations. Its technical experts engage with your team right from your build phase, listing on hyperscaler marketplaces easier, setting you up for marketplace success, getting you Co-sell ready, and ensuring you achieve your desired outcomes.