We were thrilled to co-host a recent webinar with Vanta and Craft Ventures, diving deep into the world of cloud marketplaces. Our CEO and Co-founder, Jon Yoo, alongside Jessica Gray from Vanta, Tom Pinckney from Sourcegraph, Jason Lee from Snowflake and moderated by Sarah Blanchard from Craft Ventures, discussed strategies for leveraging cloud marketplaces to drive business growth. Here are some key takeaways from the conversation.
What is a Cloud Marketplace?
Jon kicked off the discussion by explaining the basics: “Cloud marketplaces are essentially the B2B equivalent of app stores for smartphones. Just as developers build on iOS and distribute their apps through the App Store, businesses can now build on the cloud and sell their software solutions through cloud marketplaces like AWS, Azure, and GCP.”
Cloud marketplaces offer streamlined procurement processes, shortened sales cycles, and access to pre-committed cloud budgets. Companies can leverage these platforms to reach new customers, expedite procurement, and ultimately drive growth. Learn more about what Suger does.
Why Should Businesses Care?
Jessica from Vanta shared why cloud marketplaces are becoming increasingly important: “We noticed a growing interest from our customers asking if we were available on AWS Marketplace. As we leaned into this opportunity, we found that being listed not only facilitated easier procurement but also enhanced our credibility and partnership with AWS.”
The discussion highlighted that cloud marketplaces are not just a procurement tool but also a strategic channel for co-selling and co-marketing, which can lead to significant revenue growth and deeper customer relationships.
Key Benefits of Cloud Marketplaces
- Streamlined Procurement: Cloud marketplaces simplify the buying process, reducing the steps and time required for customers to procure software solutions. This can be especially beneficial for startups and smaller companies looking to scale quickly.
- Access to Cloud Budgets: Many companies have pre-committed cloud budgets with providers like AWS. By listing on a cloud marketplace, businesses can tap into these budgets, making it easier for customers to purchase their solutions.
- Enhanced Credibility: Being listed on a reputable marketplace like AWS adds a layer of legitimacy and trust to a company’s offerings. It signals to potential customers that the company meets certain standards and has undergone a rigorous listing process.
- Co-Selling Opportunities: Partnering with cloud providers opens up co-selling opportunities. Companies can collaborate with cloud provider sales teams to reach new customers and expand their market presence.
Lessons Learned and Best Practices
During the webinar, Jon and Jessica shared their experiences and lessons learned from navigating cloud marketplaces:
- Start with a Project Manager: Jessica emphasized the importance of having a single point of contact to manage the marketplace listing process. This person can coordinate between different departments and ensure a smooth and efficient listing process.
- Internal Enablement: Educating internal teams about the benefits and processes of cloud marketplaces is crucial. This helps in driving adoption and maximizing the potential of being listed.
- Focus on Quick Wins: Jon advised companies to focus on getting a few quick wins on the marketplace to build momentum. This helps in proving the value of the marketplace channel and can drive further investment and resources.
- Understand the Commitment: Both speakers highlighted the need for a clear understanding of the commitment required to succeed on cloud marketplaces. It’s not just about listing your product; it’s about ongoing management, optimization, and leveraging the marketplace for co-selling and marketing opportunities.
Jon mentioned that succeeding in cloud marketplaces requires cross-departmental collaboration: “It takes a village, and sometimes the process becomes disorganized with departments pointing fingers. Cloud marketplaces are revenue-generating channels, so founders, CROs, or heads of sales often get involved to speed up procurement. As companies scale and engage in co-selling, it typically falls to heads of partnerships or business development because they drive incremental revenue or new strategic partnerships.” Check it out here.
Jason Lee from Snowflake agreed, he said: “I’ve been with Snowflake for about two and a half years, working on the strategy and biz ops team. As Jon said, it takes a village because it involves the entire organization. Marketplaces are seen differently by various teams, and you need an executive sponsor to push things forward. It involves IT, engineering, finance, collections, partnerships, sales, and revenue operations. Listing across multiple marketplaces increases complexity, but marketplaces continually roll out new features, keeping the job exciting.”
Tom Pinckney, the Head of Partnership at Sourcegraph, shared shared the advantages of working with Suger to quickly enter cloud marketplaces:
"When I joined Sourcegraph two years ago, the first suggestion was to list in all three cloud marketplaces. At that time, I felt the workload was too heavy and didn’t want to do it myself. Indeed, there are many hoops to jump through, and while AWS provides good support, the entire booking package process is quite complex and requires close cooperation with the finance department. Ultimately, we decided to outsource this work. Before discovering Suger, we worked with another vendor who was okay. Later, we found Suger and through Jon and his team, we quickly completed the listing.The good news is that after we activated Suger, we successfully completed three to four deals within a month."
As the digital landscape continues to evolve, cloud marketplaces will play an increasingly vital role in how businesses distribute and sell their software solutions. For companies looking to stay ahead of the curve, embracing cloud marketplaces is not just an option—it’s a necessity. By leveraging these platforms, companies can streamline procurement, access new budgets, enhance their credibility, and unlock new growth opportunities through strategic partnerships and co-selling initiatives. Let's Connect!
Watch the entire webinar video to discover how Suger helps hundreds of companies achieve success.