Tackle.io, a software company helping software providers generate revenue through the cloud, has released its annual 2022 State of Cloud Marketplaces Report showcasing the latest trends and benchmarks related to cloud buying and selling habits.
Tackle surveyed senior leaders representing B2B software sellers and buyers across multiple industries, roles, and stages to understand how the cloud is changing buyer behaviors and expectations, how sellers’ cloud marketplace strategies have evolved, and what the future looks like in this evolving landscape.
For buyers, the durability of cloud budgets is having a pretty big impact on how and where they choose to buy software, despite economic uncertainty. Cloud spending is expected to have grown by $90 billion by the end of 2022, which means buyers’ motivation to purchase through cloud marketplaces is growing. Plus, 68 percent of buyers said their cloud budgets would increase next year.
As buyers invest in the clouds, opportunities for sellers to attach their offerings to the clouds in new ways become increasingly compelling.
One of the year’s key learnings is that sellers are scaling the contribution of revenue through the cloud significantly, with 44 percent of ISVs expecting to transact more than 10 percent of their revenue through a cloud marketplace in the next year, indicating the definition of success with marketplaces is growing beyond facilitating a handful of deals to driving a meaningful portion of total revenue.
Sellers see cloud marketplaces as part of a long-term business strategy — a cloud go-to-market motion—and 83 percent plan to increase their focus and investment in marketplaces as a GTM channel in the coming year.
“Growing cloud budgets open up massive opportunities for B2B software sellers to access a buyer’s committed cloud spend and leverage cloud co-sell and marketplaces to do so with less overhead. In the next year, we’re going to see ISVs who embrace a Cloud go-to-market strategy be able to scale faster and more efficiently than ever,” said John Jahnke, CEO of Tackle. “A top point of friction continues to be a lack of internal resources or bandwidth for sellers to either get started or to scale their Cloud GTM motion. Redirect that investment into partners who can empower and support you in making the Cloud GTM leap.”
To learn more about Cloud Marketplace trends and predictions or to view the full report, visit https://tackle.io/resources/reports/state-of-cloud-marketplaces.
