Partners set to cash in as cloud marketplaces go mainstream

Marketplace transactions will reach $163bn by 2030, with partners playing a growing part in helping customers spend hyperscaler commitments

Channel partners are poised to cash in on the rapid growth of cloud marketplaces as they help customers unlock billions of dollars in committed hyperscaler spending, according to analysts.

Customers are increasingly using committed spend with AWS, Microsoft Azure and Google Cloud to procure cybersecurity, business applications and other tech through cloud marketplaces – something analyst firm Omdia expects to create a $163bn market by 2030.

“We see a big trend in the market … customers are now deploying and making use of their committed spend with hyperscalers to purchase more of their third-party products,” said Omdia chief analyst Alastair Edwards.

But rather than reducing the role of the channel, the shift is increasing demand for partner expertise.

Edwards said partners play an increasingly important role in helping customers manage those large hyperscaler spending commitments. This includes ensuring they maximise the value of their prepaid cloud investments, and navigating private offers and complex purchasing models.

“Partners are becoming more and more critical to this,” he said. “Customers are struggling to define how they can use this. They don’t necessarily all know how they can take advantage of this, and they are asking for partners to be involved.”

Challenges for channel distribution

According to Edwards, hyperscalers are responding by investing in channel partner private offers and distribution-led marketplace programmes, including Google Cloud’s Distributed Cloud Partner Offering (DCPO), to ensure partners remain embedded in customer transactions.

“It’s a challenge for partners to adopt this in many cases, but this is a practice we think every partner should be investing in because if you don’t, you’re missing this business,” he said.

The growing importance of marketplaces does, however, create fresh challenges for traditional distribution.

Where customers purchase software through hyperscaler marketplaces using a single partner-managed private offer, distributors can be dropped from the transaction altogether, said Edwards.

Despite this, he believes distribution will continue to play a central role as marketplace models mature.

“We think distribution is going to be key to this as well, but the models to support distribution are still being developed.”

AI driving new procurement dynamics

Overall, Omdia expects the proportion of marketplace transactions involving partners to increase, rather than decline.

“Our forecasts are showing an increase in the proportion of that business that’s being transacted through partners,” said Edwards.

Customers increasingly want customised private offers negotiated through existing partners, particularly for large software and cybersecurity deployments, while vendors are aware that bypassing partners risks damaging long-term channel relationships.

Looking ahead, Edwards said the emergence of AI agents sold through marketplaces could further reshape partner business models.

CRN has also reported on how the shift to AI and consumption-based pricing is exposing weaknesses in legacy billing systems - hitting partner profitability.

However, he expects partners to remain central to the process as customers continue to seek advice on procurement, pricing and consumption.

“I think there is a question about the extent to which partners will participate in that motion, but... these are driving new dynamics in the business models for partners, so that they potentially will still be part of that.”