Now and Next for Hyperscaler Marketplaces

The explosive growth of hyperscaler marketplaces as a route to market for software and SaaS companies, led by AWS Marketplace, Microsoft Azure Marketplace and Google Cloud Marketplace, is reshaping enterprise procurement behavior, vendor go-to-market strategies and channel models.

Channel partners are playing an increasingly important role in this model, supported by the expansion of channel-led programs from the hyperscalers. At least 50% of all hyperscaler marketplace transactions are expected to flow through channel partners by 2027.

The Canalys (now part of Omdia) Now and next for hyperscaler marketplaces report, delivers expert insights from leading analysts, offering new research on the biggest trends and predictions for hyperscaler cloud marketplaces as a critical route to market for software and SaaS.

• Hyperscaler marketplaces are rapidly becoming a critical route to market for software and SaaS vendors across numerous technology categories.
• This is changing enterprise procurement behavior, as customers start to build marketplace purchasing strategically into their cloud spending commitments with the hyperscalers.
• Channel partners will become increasingly important to hyperscaler marketplace momentum, as vendors prioritize partner-led strategies, and customers turn to partners to help them manage marketplace procurement.
• More than 50% of hyperscaler marketplace sales will be via channel partners by 2027, as AWS, Microsoft and Google Cloud expand their respective channel partner private offer models.
• Distribution faces a growing threat from hyperscaler marketplaces, but distributors will attempt to define new roles by integrating their own digital platforms with those of the hyperscalers.
• The managed service provider (MSP) model is evolving as more partners build operational maturity, M&A activity continues at a strong pace and MSPs increase the share of managed security in their portfolios.
• The vendor platform drive has been shaken by the recent global Microsoft/CrowdStrike outage but is unlikely to be damaged in the long term due to enterprise spending consolidation patterns and entrenched positions.