The ultimate guide to cloud marketplaces

Cloud marketplaces are no longer an emerging channel. In fact, they are becoming the default way enterprises buy software. As cloud spend surges globally, platforms like Amazon’s AWS Marketplace, Microsoft’s Azure Marketplace, and Google Cloud Marketplace are transforming how B2B software is discovered, purchased, and deployed.

But why is there so much excitement about cloud marketplaces as a GTM channel? This guide breaks down everything you need to know about cloud marketplaces — how they work, why they’re growing so fast, and how to build a successful cloud GTM strategy.

TL;DR

Cloud marketplaces are digital storefronts operated by hyperscalers like AWS, Microsoft Azure, and Google Cloud. They allow businesses to buy and sell third-party software directly through their cloud accounts.

These marketplaces are growing rapidly because they:

• Enable buyers to use existing cloud spending commitments
• Reduce procurement and vendor onboarding time
• Consolidate billing into one cloud invoice
• Provide security-reviewed, pre-vetted software
• Help sellers close larger deals, faster

For buyers, cloud marketplaces simplify purchasing. For sellers, they unlock a powerful cloud GTM channel with co-selling opportunities, improved win rates, and accelerated revenue growth.

Cloud marketplaces are becoming a core part of modern B2B software distribution.

What are cloud marketplaces?

Cloud marketplaces are online platforms that facilitate the discovery, procurement, and management of software products. These platforms enable transactions between ISVs and businesses, offering a centralized hub where organizations can browse, compare, and purchase various software solutions. 

Gartner predicts that by 2026, all major cloud platforms and enterprise application providers will offer business component marketplaces.  These marketplaces will give customers a more secure and convenient way to assemble their own enterprise solutions.

With these developments, it’s no longer a surprise that cloud marketplaces are evolving at an unprecedented pace.

“The marketplace route to market is on fire and cannot be ignored by any channel leader,”

Jay McBain

Chief Analyst  |  Canalys

Also Read:A Complete Guide To AWS Marketplace

4 benefits of cloud marketplaces for buyers

1. Cloud commits for third-party software purchases

Cloud marketplaces provide buyers a way to draw their cloud commits, earmarked earlier for cloud infrastructure spend for third-party software purchases. 

As per the data shared by Roman Kirsanov, Founder & CEO of PartnerInsights, the commits on the AWS marketplace have increased by $10 Bn this quarter, adding up to $132 Bn. 

This is a powerful shift as it optimizes their cash usage on channels that can impact their bottom line and drive Return On Investment (ROI).

2. Discovery of applications and services

Cloud marketplaces provide businesses with a plethora of cloud-based services and software from different providers.

1. Amazon Web Services (AWS) offers over nine categories and 40+ sub-categories, ranging from Infrastructure, Data, and Professional services to modern IoT and Machine Learning.
2. On Microsoft Azure, there are 21 marketplace app categories with a broad spectrum covering all things Data, Security, Artificial Intelligence, Integration, and many more that one can access and leverage.
3. Google Cloud Platform (GCP) offers over 24 diverse marketplace categories, such as Networking, Storage, Monitoring, and Generative AI, to name a few.

These umpteen choices allow organizations to explore and evaluate the marketplace apps that can solve real business challenges.

3. Easy procurement and billing

Cloud Marketplaces take complete end-to-end responsibility for managing procurement and billing. This saves buyers the headache of individual contract and billing management.

Buying through a marketplace means:

• No new vendor onboarding, shaving weeks or even months off the procurement timeline
• No separate contracts to manage for each vendor, with standardized End User License Agreements (EULA) across countries.
• The existing cloud MSA already covers the purchase

4. Reduced risk and faster approvals

Marketplace listings go through:

• Security reviews
• Technical validation
• Compliance checks (vary by cloud)

Pre-vetted vendors reduce the perceived risk, making the buying decision easier for security and legal teams to vet and approve.

Also Read: A Complete Guide To Google Cloud Marketplace

5 benefits of cloud marketplaces for sellers

There is no denying that businesses are rapidly shifting to marketplaces for their software procurement. Cloud marketplace will be one of the most prominent channels for software sales in the future. Some of the notable advantages of adopting a cloud GTM strategy are:

1. Global reach and market penetration

Cloud marketplaces have a broader, global base of potential customers across all segments. Listing your products and services there helps you reach a wider international audience. 

For a business in a newer geography or market segment, being associated with brands such as Google, Microsoft, and Amazon can help increase brand awareness and build a positive reputation.

2. A new GTM channel

With access to buyers and their budgets, cloud marketplaces allow you to instantly open a new GTM channel with little infrastructure or tooling investment. 

• The drawdown on pre-committed spends enables you to increase deal sizes and win more deals.
• With streamlined billing, procurement, and contracts, you can close deals much faster

3. Scalability

Cloud marketplaces help you scale faster by:

• Opting for any pricing model - pay-as-you-go, subscription-based, one-time purchase, or even custom pricing.
• Launching a new product altogether for a new market or buyer segment.
• Augmenting your customer experience with the support provided by the cloud service providers.

4. Simpler billing, contract management, and payments

Cloud marketplaces simplify contract management with standardized EULA, custom agreements, and public and private listings. They take care of automated billing, invoicing, and collections, and disburse your revenue into your account on the scheduled date. What differentiates cloud marketplaces from the other GTM channels is their ability to:

• Append custom terms and conditions for a selected set of buyers, thus facilitating the profitable practice in the B2B SaaS ecosystem.
• Deliver custom discounts for some buyers, providing flexibility to scale and grow faster.

Hence, cloud marketplaces free up a lot of time for your internal teams - RevOps, Finance - and keep everything centralized for everyone.

Did You Know: Data from the same commissioned Forrester study also found that selling on AWS Marketplace cuts time spent on invoicing tasks by 50% and generates $2 million in efficiency savings due to standard contract templates. 

5. Co-selling and other growth opportunities

When you list on AWS, Azure, or GCP marketplaces, you become eligible to participate in the hyperscaler’s co-sell ecosystem. 

Through co-sell programs (e.g., AWS ACE, Microsoft Co-sell Ready, GCP Partner Advantage), sellers can:

• Register opportunities
• Share account context
• Signal where hyperscaler support is needed

This helps open up further growth opportunities, working in tandem with the cloud marketplace teams.

In addition, marketplace-led deals can also qualify for partner funding, hyperscaler incentives, and other combined GTM approaches.

Also Read: Sell on Azure Marketplace: The Complete Guide

What to consider while listing on cloud marketplaces

1. Fees

Cloud marketplaces charge a commission on each transaction, depending on your tier and relationship with the cloud provider. Make sure that you understand the fees before listing.

2. Hosting your infrastructure

To list on a cloud marketplace, your entire product or a portion of your infrastructure must be hosted on that cloud service, depending on the marketplace. There are some other requirements that you must follow for each marketplace.

3. Standardizing your pricing model

The hyperscalers allow you to model your product pricing for a global user base. Hence, sellers must diligently set their pricing strategies to match pricing on public properties outside of cloud marketplaces to build trust and execute fair pricing for all clients.

4. The long-term game

Cloud marketplaces drive the best results in the long term. List-and-forget does not work out. The channel needs you to invest time and work closely with the cloud marketplace team, route your existing deals to the cloud marketplace, deepen your relationships, and eventually expand into Co-selling programs.

How to choose the right cloud marketplace for your product

1. User base and target audience

Assess the size and composition of your customer base. Conduct deep research to ascertain that the marketplace attracts your target audience, ensuring potential customers are genuinely looking for the category of apps you cater to.

2. Existing relationship

If you have a partnership with a Cloud Service Provider (CSP), it could help you expedite your marketplace GTM.

3. Your customers’ pre-committed spend

While your customers can and most likely will be present on multiple cloud marketplaces, take some time to understand their pre-committed spends on different marketplaces. One of the biggest reasons behind the success of cloud marketplaces is the commit drawdown. Choose to list where your customers are present and have huge commits.

Bonus Resource: The Complete Guide to Sales Growth on Cloud Marketplaces

Start your cloud marketplace journey with Clazar

In today’s competitive market, companies need efficient ways to drive revenue. Cloud marketplace is a great channel that helps businesses see sustainable growth. 

Platforms like Clazar help companies get started with cloud marketplaces painlessly. The platform enables you to manage your listings, offers, contracts, and much more across all cloud marketplaces in one place. The user-friendly interface allows you to seamlessly go live and manage your cloud marketplace listings without needing a dedicated sales or engineering team.

Book a demo of the Clazar platform today to learn more about the modern way to sell SaaS software.

Top FAQ's

1. What are cloud marketplaces?

Cloud marketplaces are online platforms offered by major cloud providers—AWS, Microsoft Azure, and Google Cloud—where businesses can discover, buy, deploy, and manage third-party software. They simplify procurement, billing, and contracting by offering a centralized buying experience.

2. What are cloud commits and why do they matter?

Cloud commits are pre-negotiated spending commitments enterprises make with cloud providers. Many organizations prefer buying third-party software through marketplaces because those purchases count toward their committed cloud spend, increasing internal ROI and budget efficiency.

3. What are the benefits of cloud marketplaces for buyers?

Buyers benefit from:

• Commit drawdowns to maximize their cloud budget
• Faster vendor discovery, with thousands of software options
• Simplified procurement and billing via standardized contracts and consolidated invoices

4. What advantages do cloud marketplaces offer sellers (ISVs)?

Sellers gain:

• Global reach and access to enterprise buyers
• A new high-velocity GTM channel
• Faster deal cycles due to simplified procurement
• Flexible pricing models and scalable distribution
• Automated billing, contracting, and collections

5. How do cloud marketplaces help sellers close deals faster?

Marketplaces streamline legal, procurement, and finance steps by using pre-approved contracts, standardized EULAs, and one-click purchasing. They also allow buyers to use existing cloud commits, increasing deal size and accelerating approvals.

6. Do cloud marketplaces charge fees?

Yes. Cloud providers charge a transaction fee or revenue share on marketplace sales. The percentage varies based on program tier, deal type (public vs. private offer), and partner status.