Analyst(s): Alex Smith
Publication Date: May 9, 2025
More independent software vendors (ISVs) are announcing strong growth achievements on cloud hyperscaler marketplaces. In this research report, Alex Smith explores the key elements to a successful ISV strategy in this growing route-to-market. It assesses the operational attributes and the aspirations that drive overall success for best-in-class marketplace operators. Here are the key takeaways from the full report.
Key Points:
- More ISVs are pursuing hyperscaler marketplaces as an important route-to-market, with some capitalizing far more than others in this field.
- There are six key things that an ISV needs to get right when devising a marketplace strategy, including both operational aspects and cultural mindsets.
- Future marketplace innovations are likely to focus on enabling product-led growth strategies; it won’t be long before AI Agents become part of marketplace features.
Overview:
Cloud marketplaces are rapidly becoming crucial for technology companies, especially in software. Companies such as Crowdstrike and Palo Alto Networks have seen significant sales growth through platforms such as AWS and Google Cloud Marketplace, reflecting a broader trend of increased marketplace activity.
Customers are increasingly using these platforms to source their technologies. The latest Futurum Research Channel Partner Survey unveiled two core findings. First, partners regularly see customers purchasing from hyperscaler marketplaces. In fact, 46.7% of respondents believed their customers purchased from marketplaces ‘somewhat frequently’, while 39.7% believed customers purchased ‘very frequently’. No one indicated that their customers did not purchase from marketplaces at all. Second, a vast majority of partners are also transacting via the hyperscaler marketplaces themselves. An overwhelming 96.9% of respondents indicated that at least some of their revenue came via these avenues.
Figure 1: Six Core Aspects of a Cloud Marketplace Strategy
But like any marketplace, cloud marketplaces can be crowded with offerings, so standing out and driving success on these platforms involves the following six core elements:
Strategic Portfolio and Catalog: Companies must carefully select which solutions to offer, considering factors such as target audience, deployment models, and integration with the hyperscaler’s infrastructure. Up-to-date marketplace listings are essential for customer engagement.
Aligned Terms and Agreements: Marketplaces streamline procurement with standardized agreements, reducing sales cycle times. ISVs must align their legal teams with these terms and determine necessary amendments.
Dedicated Deal Desk and Sales Enablement: A marketplace deal desk is vital for managing platform-specific workflows. Simultaneously, sales teams require training and compensation structures that support marketplace transactions. Both of these teams need to work in harmony to maximize sales velocity.
Channel Partner Integration: Channel partners play a key role in marketplace transactions, and hyperscalers have programs to facilitate their involvement. Understanding different partner models and providing support are crucial.
Hyperscaler Co-selling: Collaborating with hyperscaler sales teams provides access to their customer base and insights into spending commitments. Building strong relationships and aligning sales efforts enhance success.
Product-Led Growth Strategies: Marketplaces are adopting product-led growth tactics, and increasingly, we will see innovations around improved discoverability, AI recommendations, and trial offerings. ISVs should leverage these strategies to attract customers and simplify the buying process.
The latest Futurum Research report explores in greater detail why it is essential for ISVs to align their cloud marketplace strategy around these six pillars and what that entails. These insights are derived from numerous interviews with ISVs and channel partners heavily engaged in cloud marketplaces. The full report is available via subscription to the Channels & GTM service from Futurum Research—click here for inquiry and access.
Futurum clients can read more in the Channels & GTM Intelligence Platform, and non-clients can learn more here: Channels & GTM Practice.
About the Futurum Channel & Go-to-Market Practice
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Author Information
Alex is Vice President & Practice Lead, Channels & Go-to-Market at the Futurum Group. He is responsible for establishing and maintaining the Channels Research program as part of the overall Futurum GTM and Channels Practice. This includes overseeing the channel data rollout in the Futurum Intelligence Platform, primary research activities such as research boards and surveys, delivering thought-leading research reports, and advising clients on their indirect go-to-market strategies. Alex also supports the overall operations of the Futurum Research Business Unit, including P&L segmentation, sales and marketing alignment, and budget planning.
Prior to joining Futurum, Alex was VP of Channels & Enterprise Research at Canalys where he led a multi-million dollar research organization with more than 20 analysts. He played an integral role in helping the Canalys research organization migrate into Omdia after having been acquired in 2023. He is an accomplished research leader, as well as an expert in indirect go-to-market strategies. He has delivered numerous keynotes at partner-facing conferences.
Alex is based in Portland, Oregon, but has lived in numerous places, including California, Canada, Saudi Arabia, Thailand, and the UK. He has a Bachelor in Commerce and Finance Major from Dalhousie University, Halifax Canada.
