Cloud computing is revolutionizing the software world as we know it. According to Bessemer Partners, the cloud has beaten a $1 trillion market cap with a 45 percent year-over-year growth rate. In today’s increasingly cloud-based computing world, many software companies are looking for ways to get the most out of the cloud marketplace.
Flexera finds that 50 percent of all enterprise data and workloads are expected to enter the public cloud over the next year. Cloud adoption has become mainstream, and there is great potential for further growth.
Selling software in a cloud marketplace can be a huge advantage compared to selling physical copies to be placed on the client’s servers or individual machines. There is far greater flexibility in the business model than traditional software distribution systems display.
Customers are looking for ways to optimize their software selections, and cloud marketplace sellers can help them do their jobs more efficiently and at a lower cost than obtaining physical copies. The SaaS marketplace platform enables software developers to market their products in a central location and to easily keep up with new developments in their field.
There are also many advantages to using cloud marketplaces from an end user’s point of view. This article will explain how both buyers and sellers can get the most out of the cloud marketplace.
Advantages for Users
Users find that they enjoy shopping for software on a SaaS marketplace platform. They are able to access more options and to examine the programs in detail before they buy anything. They can also pick and choose the program functionality they want, rather than being tied into a bundle with the software they may never use.
Customers prefer to deal with a largely self-service model, though they do want to consult a salesperson at some point. AI chatbots can start the conversation, completed by a live sales representative.
SaaS platforms are less expensive than traditional software packages. Many of these platforms offer graduated pricing tiers, meaning that the companies that use the software the most receive a discount.
Advantages for Software Companies
Cloud marketplaces are growing rapidly because they confer many advantages for software companies as well as for end-users. One of the biggest benefits for software companies is the ease of getting their product into customers’ hands. They can skip the task of creating physical copies of their work. They can also provide easy updates to their customers when they make changes to their software
B2B and B2C Commerce
B2B commerce trails behind B2C commerce when it comes to speed and ease. Software buyers want to see it catch up. E-commerce models like the cloud have created a more even playing field between B2B and B2C sales, making customers happy in both cases.
Digital Sales Meet Buyers’ Expectations
Cloud spending and digital buying have led to the growth of marketplaces to surpass expectations. A significant portion of B2B sales is now being made through e-commerce, direct web sales, and marketplaces.
Cloud Marketplaces Make the Process Easier
Traditional software sales can be challenging. Budgets and contracts sometimes run into conflicts. Software buyers are tired of the endless restrictions on their activities.
Using the cloud simplifies procurement. The marketplace makes it easier for new vendors to step in and sell their software. Marketplace use makes onboarding simple.
Often, unique contracts are not needed for purchases from a marketplace. These bills are rolled into the general cloud provider statement. This means that the process of getting a purchase approved is much easier for the customer.
Pay-as-You-Go Business Solutions
The growth of the cloud and the SaaS marketplace platform reinforces pay-as-you-go business models. Software providers need to innovate to be able to make these agreements. The marketplace can make it easier to offer consumption-based licensing without needing to completely remake the product. Many marketplaces have introduced a combined strategy with baseline contracts plus a monthly consumption charge.
Today, many new companies are creating “marketplace-native” software that is easier to get up and running in this context. It is projected that these companies could make deals faster.
Both Buyers and Sellers Benefit
The rise of the SaaS marketplace signals a major shift in the software arena. The new methods of doing business are highly advantageous for both buyers and sellers. Buyers are able to use commitments from their cloud provider to consolidate their cloud solutions under a single bill. Sellers can access new buyers and speed up each transaction.
While the world of the cloud marketplace is complex, it is continually changing. Sellers are working to make the experience more user-friendly and to bring costs down and increase positive competition. Companies are encouraged to do business in the cloud whether they are buying or selling software.
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