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Cloud marketplaces vs traditional distribution. Analyst makes bold prediction

Rise of marketplaces from AWS, Azure and Google sparking ‘fundamental change in software distribution’, Futurum says

Oxygen staff by Oxygen staff
3 February 2025
in Market data, News, Tech trends
Channel holds key to long-term health of cloud marketplaces, analyst claims

Image by PublicDomainPictures from Pixabay

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Cloud marketplaces will become as crucial a go-to-market strategy for ISVs as traditional distribution is for hardware vendors.

At least that’s according to one of eight predictions made by Futurum Group in its 2025 Key Issues & Predictions Report.

Analysts have been cooing over hyperscaler marketplaces for several years, with Canalys last August predicting that enterprise software sales through this emerging channel will swell from $16bn in 2023 to $85bn by 2028.

Amid predictions that partners will capture half the spending that takes place via hyperscaler marketplaces by 2027, top partners such as Computacenter, Softcat and Bytes Technology Group are all ramping up their strategies here.

“Fundamental change in software distribution”

Now Futurum has weighed in on the topic, claiming that the rise of hyperscaler marketplaces signifies a “fundamental change in software distribution”.

It predicted that cloud marketplaces including AWS Marketplace “will become as big a GTM for ISVs as traditional distribution is for commercial hardware”.

This shift will be fuelled by three factors, Futurum said.

Firstly, marketplaces have become as cost competitive as traditional distribution channels, with fees falling from north of 20% to 3% as standard (and in some cases as low as 1.5%), the analyst said.

This leaves more room in the margin stack for ecosystem partners to take part, it explained.

Cloud commits – ie, committed long-term spending agreements – rose nearly 30% to $394m across the the three major hyperscalers in Q3 2024, Futurum said. Certain portions of this can be used on third-party products on the cloud marketplace, it pointed out.

Finally, AWS, Microsoft and Google have all launched ‘Private Offer’ programmes to help channel partners participate in their marketplaces, Futurum said. Despite recent moves by Microsoft and Google, AWS (which has indicated that north of 30% of marketplace transactions already feature a partner as the selling agent) still has the most mature programme here, it said.

Alex Smith, Futurum
Alex Smith, Futurum

“Every vendor is trying to figure out their marketplace strategy, which ones to prioritise, how to operationalise it, and how to bring traditional partners on that journey,” stated Alex Smith, Vice President & Practice Lead Channels & GTM at Futurum.

“The most successful vendors in the marketplace will be the ones that understand how to include service delivery partners as part of their marketplace strategy.”

Futurum’s other seven predictions for 2025 include that AI-capable PCs will come to represent at least 40% of new PC shipments by the end of 2025. Its crystal ball also indicates that at least 30% of routine business software interactions will be mediated through AI agents rather than direct user interface by the end of the year.

Tags: CanalysfeaturedFuturum GroupTrending
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