Get Ahead in the Cloud by Brightpaper

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Get Ahead in the Cloud • 7 USE OF CLOUD SERVICE PROVIDER MARKETPLACES The ISVs GLG surveyed also report using their cloud service providers as channels for selling their products and services. Fifty-three percent of respondents indicated that their organizations employ a marketplace hosted by their cloud service provider. ISVs that used their cloud service provider's marketplace as a sales channel saw their level of promotion and sales through that channel increase by an average of 43% since their adoption of cloud infrastructure, primarily due to achieving a lower cost of sales through that channel. A senior vice president at an ISV providing cybersecurity products explained, "You have a situation where a customer does their investigation. They find the offering on the marketplace; they go through the marketplace to get the necessary information…and then they actually procure and buy through the marketplace. It's almost zero- touch. For the ISV, there's a very low cost of sale and there's very low involvement of staff." Respondents from ISVs that employed the AWS marketplace as a substantial part of their overall sales and marketing (deriving more than 10% of their revenue from the marketplace) reported higher metrics than those who did not use the marketplace as extensively. Marketplace Share of Revenue Marketplace Share of Revenue Average Decrease in Cost Per User Average Decrease in Customer Acquisition Cost Less Than 10% -17% -14% -12% More Than 10% -25% -22% -19% -21% -17% -15% CONCLUSION GLG's research demonstrated that ISVs increasingly rely on cloud infrastructure to develop and deploy their revenue-generating products and services. ISVs benefit from cost savings and improvements in operations after adopting cloud infrastructure, enabling them to deliver new features to their customers faster and to provide a higher level of service and reliability. What's more, improvements in competitiveness and service quality translate into higher customer retention and satisfaction, creating the foundation for accelerated growth and improved revenue. ISVs also benefit from the marketplace and ecosystem of their primary cloud service provider, enabling them to reach new customers more easily and reduce their customer acquisition costs. Total Responses

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