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Home Tech trends

‘Our prediction is holding’ – Tackle.io CEO doubles down on $100bn cloud marketplace bet

John Jahnke claims the vendor has now processed over $10bn in cloud marketplace transactions

Oxygen staff by Oxygen staff
27 August 2024
in Tech trends, News, Vendor
‘Our prediction is holding’ – Tackle.io CEO doubles down on $100bn cloud marketplace bet

Image by talha khalil from Pixabay

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Tackle.io’s CEO has doubled down on predictions that cloud marketplace spend will hit $100bn by 2026.

Hyperscaler marketplaces are emerging as a fast-growing new route to market for enterprise software, with Canalys forecasting the spend they capture will rise from $16bn to $85bn between 2023 and 2028.

Their growth could be even more dramatic than this, however, according to John Jahnke, who heads up cloud GTM platform Tackle.io.

Counting CrowdStrike, Sync and Wiz among its clients, it “exists to help ISVs solve the challenges of integrating [their] GTM systems with the clouds”.

$100bn in sight

In a LinkedIn post, Jahnke confirmed that Tackle has now processed over $10bn in cloud marketplace transactions, up from $5bn in November.

“Last year, we predicted that revenue flowing through the Cloud Marketplaces would hit $100bn in 2026, and from everything we are seeing this prediction is holding,” he wrote.

CrowdStrike (see here) Snowflake, Palo Alto Networks and Splunk have all reportedly now sold over $1bn of software through the AWS Marketplace alone.

Offer count on these cloud marketplaces is growing faster on a percentage basis than the dollars, Jahnke wrote (see below), with average transaction size over the last four years decreasing by 80%.

“This is a strong sign that this channel is for more than mega buyers and large deals,”  Jahnke wrote.

Jahnke added: “I want to give a shoutout to our ISV customers, their partners, and the cloud platforms who are all doing heavy lifting to drive both buyer and seller activity around the Cloud GTM movement. We exist to help support ISVs through our platform and team to make this new selling motion easy and I look forward to celebrating the $1B in a month milestone. Will it be this year????  It might be a bit of a stretch, but Q4 is always when magic happens in Cloud so stay tuned!”

While most vendor sales via these marketplaces are today “direct” to end customers, channel partners “are playing an increasingly important role”, Canalys said.

It expects more than 50% of marketplace sales to flow through the channel by 2027.

Tags: featuredTackle.io
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