The 2022 State of Cloud Marketplaces Report found durable cloud budgets help both sellers and buyers in economic uncertainty
BOISE, Idaho — Oct. 26, 2022 — Tackle.io, a software company dedicated to helping software providers generate revenue through the clouds, has released its annual 2022 State of Cloud Marketplaces Report showcasing the latest trends and benchmarks related to cloud buying and selling habits.
Tackle surveyed senior leaders representing B2B software sellers and buyers across multiple industries, roles, and stages to understand how the cloud is changing buyer behaviors and expectations, how sellers’ Cloud Marketplace strategies have evolved, and what the future looks like in this evolving landscape.
For buyers, the durability of cloud budgets is having a pretty big impact on how and where they choose to buy software, despite economic uncertainty. Cloud spending is expected to have grown by $90 billion by the end of 2022, which means buyers’ motivation to purchase through the Cloud Marketplaces is growing. Plus, 68% of buyers said their cloud budgets would increase next year. As buyers continue to invest in the clouds, opportunities for sellers to attach their offerings to the clouds in new ways becomes increasingly compelling.
One of this year’s key learnings is that sellers are scaling the contribution of revenue through the clouds significantly, with 44% of ISVs expecting to transact more than 10% of their revenue through a Cloud Marketplace in the next year, indicating the definition of success with Marketplaces is growing beyond facilitating a handful of deals to driving a meaningful portion of total revenue.
More than ever, sellers see Cloud Marketplaces as part of a long-term business strategy—a Cloud go-to-market motion—and 83% plan to increase their focus and investment in Marketplaces as a GTM channel in the coming year.
“Growing cloud budgets open up massive opportunities for B2B software sellers to access a buyer’s committed cloud spend and leverage cloud co-sell and Marketplaces to do so with less overhead. In the next year, we’re going to see ISVs who embrace a Cloud go-to-market strategy be able to scale faster and more efficiently than ever,” said John Jahnke, CEO of Tackle. “A top point of friction continues to be a lack of internal resources or bandwidth for sellers to either get started or to scale their Cloud GTM motion. Redirect that investment into partners who can empower and support you in making the Cloud GTM leap.”
Additional highlights from Tackle’s 2022 State of Cloud Marketplace:
- We expect to see as high as $15B in Marketplace throughput by the end of 2023 and $50B by the end of 2025.
- 76% of ISVs reported planning to expand their Cloud Marketplace presence over the next year.
- 40% of ISVs said they initially listed on Marketplace due to customer demand, a 48% increase over last year.
To learn more about Cloud Marketplace trends and predictions or to view the full report, visit https://tackleoldwedev.wpenginepowered.com/resources/reports/state-of-cloud-marketplaces.
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About Tackle
Tackle is the leading solution built to help software companies generate revenue through clouds. Tackle works with more than 450 software companies including Auth0, CrowdStrike, HashiCorp, Lacework, New Relic, Snyk, VMware, and many more at every stage—from companies scaling their go-to-market to the largest software companies in the world. We are venture backed by three of the world’s top SaaS investors—a16z, Bessemer Venture Partners, and Coatue—to execute on our mission to positively transform the way that software is sold.
Tackle is available for purchase on the AWS Marketplace, Microsoft commercial marketplace, Google Cloud Marketplace, and Red Hat Marketplace.
