4 techniques cloud marketplaces come up with a aggressive edge
Businesses can quickly adapt innovative technology to remain resilient and optimize internal resources by leveraging public cloud marketplaces. Digital procurement through public cloud marketplaces is a low-touch way to discover, try, and purchase software needed for immediate access. Organizations can buy through standard contracts and pre-allocated budgets, streamlining procurement and simplifying vendor management, bringing company-wide benefits.
Public cloud growth continues
Cloud initiates that were once stalled suddenly became the key to surviving COVID-19. A Gartner report on the trends driving the public cloud sector predicts that the public cloud industry will grow massively over the next few years, eventually accounting for more than 45% of all enterprise IT spending by 2026.
Cloud marketplaces: The new digital way to procure
Enterprises increasingly turn to public cloud marketplaces as an efficient and more convenient alternative to typical sales processes changing buying behaviors, and now they are here to stay. The adoption of cloud marketplace buying has shifted from an early adopter pattern to mainstream.
In 2021, 61% of buyers said they had purchased software through one of the cloud marketplaces—a 39% increase over 2020, with nearly all these purchases taking place in Google Cloud, Amazon Web Services (AWS) and Azure marketplaces. Research suggests that 80% of sales interactions will happen through digital channels by 2025.1
Enterprise buyers get value faster purchasing through a cloud marketplace and in 2021 pointed to these benefits that help their bottom line:
- 43% take advantage of committed spend with Cloud Providers
- 42% accelerate time to value
- 36% simplify procurement
- 32% standardized contracts
- 32% fast access to tools
Why is cloud marketplace procurement the best decision for your business?
1. Combine software and cloud spend to fast-track cloud initiatives
Access to technology and innovative solutions drives companies to migrate their workloads to the cloud, whether it’s a move and improve (lift & shift) from on-premises to public cloud or an opportunity to modernize their IT environment. The Flexera 2021 State of the Cloud Report reveals 59% of respondents use cloud heavily and have reached the advanced cloud maturity level.
As more companies look to move their workloads to the cloud, many buyers will start their software procurement via marketplaces to combine software and cloud spend to maximize contract value. Transacting through the marketplace expedites the entire process from discovery to trial, purchase, and deployment.
2. Get big value: Drawdown committed cloud spend
Cloud enterprise agreements provide hefty volume-based discounts to organizations. Purchasing business-critical software through public cloud marketplaces reduces a customer’s cloud commit. If you aren’t taking advantage of marketplace procurement, you are missing out. A survey found that 77% of buyer respondents have some enterprise cloud agreement (EA) in place, and of those, 90% say they plan to purchase via Marketplace in the future.
3. Private offers provide bespoke terms and pricing
With private offers, organizations get a tailored solution that aligns with their business instead of a “one-size-fits-all” solution. It allows businesses to work with their software provider, negotiate pricing, terms, and conditions, and then transact through the public cloud marketplace.
4.Less overhead for finance and operations
In the past few years, organizations have incorporated many different SaaS vendors into their business. According to Forbes, SaaS revenue is projected to be $369 billion by 2024, increasing $200 billion in five years. SaaS purchases do not fare well for many procurement departments. More vendors mean more overhead to manage the purchasing process. Buying software via a marketplace is helpful as it reduces their workload compared to purchasing products from each vendor, one at a time.