CLOUD MARKETPLACES
Off to market Cloud marketplaces have grown in popularity along with the explosion in the use of cloud applications and are now a key route to market – but there is still plenty of scope for development.
Cloud computing has grown massively in the UK in recent years, with the 2022 cloud market size in the UK is estimated at £41 billion, according to figures from AAG. The market is expected to grow by another £18 billion by 2024. Alongside this, cloud marketplaces have also grown in popularity in the UK in recent years. “End users are embracing the subscription-based model for their solutions, seeking enhanced efficiency, reduced risk, and a sharper focus on business growth,” says Phylip Morgan, chief revenue officer at Pax8 EMEA. “The subscription-based approach has witnessed a remarkable surge in popularity, with a recent study conducted by Zuora revealing a staggering 437% growth in subscription business revenue over nearly a decade. This rise can be attributed to customers’ affinity for convenience and the desire for novel experiences, where the burden of decision-making is alleviated with each purchase. “There is also a trend towards marketplaces generally in technology, due to their rising popularity in the B2C space. Companies now expect this same, seamless experience when they do business commerce akin to the consumer world. Successful cloud marketplaces will be determined by the level of user experience they deliver.” There are numerous reasons why end users are using cloud marketplaces, Phylip adds. This includes the ease of discovery of new products and solutions and to compare solutions and find the best fit for a particular business need. “There is also dedicated account management, allowing MSPs to stay informed on important information with a key point of contact who is readily available to speak about new products, services and wider growth opportunities,” he adds. “There is also simplified procurement, with a single point of contact for billing and
support, flexibility to add or remove services as business needs change and cost savings through competitive pricing.” Tailored solutions Nick Bannister, vice president sales for Arrow’s enterprise computing solutions business in the UK and Ireland, adds that marketplaces are widely recognised across the industry as a key route to market. “Many of the leading hyperscalers have established platforms as the percentage of business done through them continues to grow substantially,” he says. Nick adds that customers’ buying habits have changed. “There is demand for the same click to buy purchasing experience as our personal shopping habits where possible,” he says. “From a channel partner perspective, a marketplace allows tailored solutions to be built to service end-users’ specific requirements. This SaaS model allows automation of workflows, provisioning, billing, support and such like. This can also be replicated with different customers allowing for economies of scale. “In addition, purchasing via a marketplace allows the end customer to gain access to the API economy, where they can consume technology in a simple and straightforward fashion.” Easy access Cloud marketplaces are also relatively easy for resellers and customers to get involved in. “Arrow can assist channel partners in understanding the power of the marketplace,” Nick says. “Training support and guidance is an important facet of cloud consumption via a marketplace. It is an essential part of Arrow’s offer. We have created two distinct programs that cover onboarding and ongoing engagement with channel partners. “Part of the value Arrow can add to
Phylip Morgan CRO, Pax8 EMEA
pax8.com
Nick Bannister vice president sales
arrow.com
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