How to Leverage Committed Spend on Cloud Marketplaces
As software companies shift from chasing growth to optimizing it, one thing stands out: buyers still spend big in the cloud. And while many budgets are tightening, cloud committed spend continues to open doors for Independent Software Vendors (ISVs).
Global spending on public cloud services is set to hit $723 billion in 2025, showing that even in times of economic uncertainty, organizations are still investing heavily in cloud marketplaces.
For ISVs, that creates an opening. As companies look for ways to maximize their cloud commitments, cloud marketplaces have become a go-to procurement channel. Now, buyers have a way to stretch budgets while helping ISVs accelerate deal cycles.
In this blog, we’ll cover everything you need to know about committed spend, cloud buyer enterprise agreements, and how ISVs can use them to their advantage—especially with support from Tackle.
What is committed cloud spend?
In the simplest terms, committed spend refers to an organization’s agreement with a cloud provider to consume a set level of services within a specific time frame. These are typically “use it or lose it” agreements, meaning that unspent budget goes unused if consumption targets aren’t met.
The key benefits of committed spend for enterprise customers include:
1. Long-term partnerships with the cloud provider
2. Discounts and incentives that help scale operations
3. A simplified billing and procurement process (new software shows up on their existing cloud bill)
4. Deeper integration into the provider’s ecosystem
Each of the major hyperscalers—AWS, Google Cloud, and Microsoft Azure—offers its own programs.
While the specifics differ, here’s a high-level look at each program:
AWS committed spend (Enterprise Discount Program)
AWS committed spend through the Enterprise Discount Program (EDP) is designed for large enterprises with consistent cloud use. Customers typically need to commit at least $1M annually. ISVs who want to take advantage of these programs often need to pair with the Cloud Provider in a co-sell motion, as described in our guide to co-selling with AWS.
Google CUD (Committed Use Discounts)
Google CUD lets buyers commit to one- or three-year terms at lower rates. These discounts can be spend-based or resource-based, which makes them flexible for predictable workloads. For ISVs, selling through Google Cloud Marketplace makes it easier to connect with buyers already using CUDs, which is a process we break down in the Google Cloud Marketplace seller guide.
MACC committed spend (Microsoft Azure Consumption Commitment)
The “MACC” program allows enterprise customers to spend down their Azure cloud commitments by purchasing third-party solutions through the Microsoft Commercial Marketplace. This is one of the strongest incentives for buyers to transact via Azure, and ISVs can capture this opportunity by following best practices highlighted in our Microsoft Commercial Marketplace seller guide.
How does committed spend impact software purchases for ISVs?
For ISVs, committed spend opens access to a pool of pre-approved budget. Buyers may already have millions allocated to their provider and are motivated to consume it.
That means:
- Deals can close faster because budget hurdles are reduced
- Software purchases can align with “burn down” commitments
- Transactions are often seen as lower-risk, since they tie directly to existing spend
This shift has been widely noticed in how buyers approach procurement. Many teams now evaluate which tools can be sourced through a marketplace to make full use of their cloud committed spend.
As one senior manager at CircleCI explained:
“Marketplaces are becoming the go-to mechanism for procurement because customers commit to cloud spend, and the more they spend, the larger discount they get,” Senior Manager, Resellers, Cloud Alliances, and Marketplace Partnerships at CircleCI.
This dynamic means ISVs who position their offerings around cloud committed spend can accelerate deal velocity and open new business opportunities. The key is to lean on data to identify which marketplaces your prospects are most likely to transact on, and which customers already have budgets available to purchase third-party software.
Just as importantly, asking clear discovery questions early ensures you’re talking to the right people at the right time. That not only helps you avoid wasted cycles, but also builds trust with buyers who are under pressure to maximize their commitments efficiently.
Why are cloud marketplaces key for accessing committed spend?
Marketplaces are the easiest way for buyers to apply their committed spend to third-party solutions. For ISVs, this means:
1. Less procurement friction (buyers already trust their cloud provider)
2. Faster time-to-value (transactions appear on existing cloud bills)
3. Stronger relationships with both the buyer and the cloud provider
Cloud infrastructure spending itself continues to climb, growing nearly 20% year over year in Q4 2024. That momentum reinforces why marketplaces have become the most straightforward route for buyers to apply cloud committed spend quickly.
How do committed spend strategies affect budget cycles?
Budget cycles are always top of mind for buyers. Applying committed spend during renewals or expansions helps ISVs:
- Overcome objections during end-of-year budget pressure
- Push upgrades across the finish line by applying spend that’s “already budgeted”
- Improve retention by embedding transactions into cloud bills
Because committed spend functions as a pool of usable budget, it’s tailor-made for renewals and upgrades. Organizations that may hesitate on a software expansion, or balk at renewing during a downturn, are often more willing to move forward if the purchase can be applied to their cloud commitments.
This not only helps deals close faster but also adds an extra layer of stickiness: when a renewal is seamlessly integrated into a buyer’s existing cloud bill, churn becomes less likely.
Even more so, global spending on compute and storage infrastructure for cloud deployments more than doubled year-over-year in Q3 2024. That acceleration highlights why aligning sales cycles with committed spend strategies and cloud budget cycles can be such a powerful approach for ISVs.
Build your committed spend strategy with Tackle
Tapping into committed spend is one of the most effective ways for ISVs to land new deals, close renewals, and accelerate growth in the cloud era. It’s a solid step toward building a Cloud GTM strategy that drives growth, regardless of current economic conditions.
To take full advantage, ISVs need to:
1. Identify which buyers have committed spend available
2. Align their sales strategy with marketplace programs like AWS committed spend, Google CUD, and MACC committed spend
3. Use data to target the right buyers at the right time
With the right approach and the right partner, committed spend can open new revenue streams and strengthen long-term customer relationships.
Tackle helps ISVs operationalize these strategies by combining marketplace expertise with purpose-built tools that simplify procurement, identify the right buyers, and maximize the impact of cloud commitments.
Ready to build a committed spend strategy that lands your next big deal? Contact us to get started.
