SOMP 2022 is now available!
INTRODUCTION
We've seen phenomenal motion in the evolution of Cloud Marketplaces over the last three years. For the third year in a row, Tackle surveyed both B2B software sellers and buyers about their participation in the Marketplaces, the value they get from the Marketplaces, the roadblocks they face, and the reasons they believe Cloud Marketplaces have the potential to become the revenue channel of the future.
44% of sellers expect to transact more than 10% of their revenue through a Cloud Marketplace in the next year.
LEARNING
01
CLOUD BUDGETS ARE DURABLE—EVEN IN ECONOMIC UNCERTAINTY
We have seen the economy change so drastically over the last few years, and even more dramatically this year, but cloud budgets continue to be a growing investment.
65% of respondents said they put more into their cloud budgets in the last 12 months and 68% plan to increase that amount in the next 12 months.
Why Buyers Buy on Marketplace
38% of sellers said they have neutral or no confidence in their ability to know if prospective buyers want to purchase on Cloud Marketplaces.
LEARNING
02
DATA IS THE MISSING LINK FOR MARKETPLACE + CO-SELL SUCCESS
Marketplace and co-sell offer complementary value props that support seamless selling and scalable deal flow, and data is the key to unlocking their combined magic.
84%
say driving co-sell with the Cloud Providers is important or very important to their business priorities in the next 12 months.
LEARNING
03
SALES LEADERS AND FIELD SELLERS HAVE TO ADAPT TO THIS NEW WAY OF SELLING
Cloud GTM requires new skills of sales teams and leaders. Sales training and comp adjustments are necessary steps to helping sales teams adapt to new ways of working with both buyers and with partners. Ongoing training and education is mission-critical to success.
Just over a third of our survey respondents said that more than 31% of their sales organization has received proper training and are effectively leveraging Marketplace.
Organizations with Comp Neutral Model
Do enterprises see channel partners as complementary, neutral, or competitive to Cloud Marketplace?
LEARNING
04
ENTERPRISE SOFTWARE COMPANIES HAVE UNIQUE CHALLENGES TO UNLOCKING SCALE
Universally, we hear from our largest customers that they see a time where they will sell larger portions of their portfolios via the Cloud Marketplaces, but they need additional support to make this happen, including support for channel, pricing and packaging for large product portfolios, and tooling to bring the system together.
83%
of Marketplace deals will have some level of channel partner involvement in the next year for enterprise sellers.
PREDICTIONS
Hover to Open
01.
We could see as high as $15B in Marketplace throughput by the end of 2023 and $50B by the end of 2025.
Hover to Open
02.
Sales, Marketing, and Alliances have to work together as an organization to lean into partner-led growth.
Hover to Open
03.
We will see significant growth in line of business purchasing through Marketplace in the coming year.
Hover to Open
04.
Discovery will become a bigger focus and both the Cloud Providers and Tackle will innovate to bring Marketplace closer to where buyers discover.
CONCLUSION
All in all, our biggest takeaway this year is that ISVs have gotten pretty comfortable with the first phase of the Marketplace story: getting listed and learning how to transact. What we're seeing now is a new phase all about companies learning to scale and integrate Marketplace into a Cloud GTM system.
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