Uddhav Gupta, President of CloudBlue.
The software industry is undergoing a seismic shift. The rise of hyperscalers such as AWS, Microsoft Azure and Google Cloud has redefined the competitive landscape for independent software vendors (ISVs). This offers an unprecedented opportunity for ISV leaders to gain access to global customers, streamline deployments and gain built-in trust. But while the promise of scale is enticing, success in these marketplaces isn’t guaranteed. In my work helping companies prepare to enter hyperscaler marketplaces, I’ve found that in order to thrive in this environment, ISV leaders need to focus on execution over presence.
Hyperscaler cloud marketplaces are a fast-growing sales channel for software as a service (SaaS), software and cybersecurity solutions. Yet many ISVs fail to unlock their full potential. Why?
I believe it is because putting a product on a hyperscaler’s marketplace is just one step in an overall strategy. ISVs need to go beyond the basics and carefully design their products, build strong partnerships, and plan their marketing and sales strategies to make the most of the powerful advantages hyperscalers offer. Rather than treating it as a spring, look at the process as a marathon that demands precision, patience and persistence. To help you get started, let’s explore several strategies and best practices ISVs can take to expand sales channels and maximize their success.
Building Strong Networks
Neglecting ecosystem relationships is a common mistake for ISVs. In my experience, focusing solely on marketplace visibility without engaging key ecosystem players, such as hyperscaler account teams, strategic partners and developer communities, can limit an ISV’s growth potential. In order to achieve long-term success, it’s important to explore and capitalize on your available ecosystem connections.
Another common misstep is delaying investment in scalability before you prepare for growth. Hyperscalers often prioritize solutions capable of managing high volumes, such as thousands of orders, so if your ISV is unprepared, this can lead to missed opportunities.
Designing For The Hyperscaler Marketplace
In a hyperscaler marketplace crowded with thousands of solutions, one of the biggest challenges for ISVs is standing out. Simply claiming to be the best or the biggest is typically ineffective in an ecosystem filled with noise.
I’ve found that success in this arena often hinges on understanding the dual push-and-pull dynamics of the marketplace. While ISVs push to gain visibility and business, hyperscalers are simultaneously pulling customers in by showcasing their marketplace as a thriving ecosystem, not just an infrastructure provider. By aligning your ISV with this magnetic pull, you can integrate seamlessly into the hyperscaler’s strategy and leverage its momentum to gain traction.
Here are a few ways you can design your products for seamless integration and ease of adoption:
• Differentiate. Hyperscalers provide and sell services across all tiers of the cloud architecture. As a result, they can compete directly with ISVs by offering services at the same level. Distinguish your ISV by focusing on features and capabilities that are unique and not part of a hyperscaler’s core offerings.
• Adopt a cloud-native approach. Ensure your product is optimized for hyperscaler services, including native compatibility with the platform’s application programming interfaces (APIs) and deployment frameworks.
• Start small and scale gradually. Consider providing a freemium model or limited-time trial version to lower adoption barriers and accelerate customer onboarding.
• Automate. Hyperscalers assess an organization’s readiness by evaluating whether their infrastructure can handle large-scale orders. Automation in your deployment, licensing and support structures can help you facilitate scalability by enabling your business to meet spikes in demand.
• Prioritize usability. Customers want quick setup and usability. In my experience, simplifying deployment and offering robust documentation can significantly improve conversion rates.
Leveraging The Go-To-Market Power Of Hyperscalers
Another strategy for successfully navigating a hyperscaler market is harnessing the hyperscaler’s go-to-market (GTM) capabilities through strategic engagement. This type of engagement, along with cultivating partner relationships, can unlock co-selling, co-marketing and high-value customer introductions. To prioritize engagement, I recommend focusing on these key areas:
• Co-Selling And Co-Marketing: Hyperscalers typically offer robust GTM tools and campaigns. Investing in these initiatives can help your ISV gain traction. For instance, I’ve found that creating joint success stories with hyperscalers can drive credibility and visibility.
• Targeting Niche Markets: ISVs can design tailored packages or discounts for specific customer segments and collaborate with hyperscalers to capture new business opportunities.
• Community Participation: Events, webinars and community activities are invaluable platforms for building brand recognition. While it’s normal for ISVs to hesitate over allocating budget to such activities, they can yield high dividends in terms of awareness and partnerships.
• Using Hyperscaler Analytics To Drive Strategy: Use the insights offered by your hyperscaler partner to tailor your campaigns and refine your product offerings, such as focusing on specific customer segments and geographies. Building and promoting customer success stories collaboratively with the hyperscaler can also be helpful.
An ISV Playbook For Sustainable Growth
The software industry is evolving at breakneck speed, and hyperscalers are helping to shape its future. Working with both ISVs and hyperscaler marketplaces has shown me that ISVs should focus on playing the long game. You need more than just a listing—you need a strategy. By prioritizing scalability, fostering ecosystem relationships and leveraging the full suite of tools and data analytics offered by hyperscalers, ISVs can unlock growth opportunities and set the pace rather than simply keeping up.
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