Cloud marketplaces are online platforms that allow customers to browse, buy, and deploy cloud-and SaaS-based software and services from various vendors. The explosion in committed cloud spend, which is use-it-or-lose-it funds committed to public cloud providers by end customers, adds another dimension to cloud marketplaces.
As organizations accelerate their cloud migration, committed cloud spend inevitably occupies a significant portion of overall company spend. To encourage this trend, public cloud providers have expanded the use of these funds to include purchasing IT solutions.
This confluence of IT and cloud budgets creates an opportunity for organizations to be creative and maximize spend while enjoying the convenience of cloud marketplaces.
On-Premises Solutions are now Available because of SaaS
In recent years, cloud marketplaces have begun offering SaaS solutions. SaaS solutions blur the line between cloud and IT budgets with their flexible, on-premises deployment options. Customers can now use marketplaces to purchase their global SD-WAN or SASE network.
One of the main advantages of buying on-premises solutions through cloud marketplaces is that customers can leverage the expertise and support of the vendors, who can help them with installation, configuration, maintenance, and updates. Moreover, customers can also benefit from the flexibility and scalability of the cloud, as they can easily adjust their usage and capacity according to their needs. Customers can also access various on-premises solutions from different categories, such as security, analytics, database, storage, networking, and more.
On-premises solutions purchased through cloud marketplaces are especially suitable for customers with specific compliance, security, or performance requirements that SaaS solutions cannot meet. For example, some customers may need to store their data on their own servers for regulatory reasons, or they may need to run applications that require high levels of customization or integration with other systems. When customers buy on-premises solutions through cloud marketplaces, they still enjoy the convenience and efficiency of the cloud while meeting their unique business needs.
Private Offers vs Traditional IT Budget
Cloud marketplace Private Offers are a way for cloud service providers to offer customized and discounted solutions to their customers without going through the traditional IT budget approval process. Private Offers allow customers to access exclusive deals and benefits, such as flexible payment terms, tailored support, and enhanced security. Private Offers also enable faster and easier deployment of cloud services, as customers can bypass the lengthy and complex procurement cycles that often delay or prevent IT projects.
Traditional IT budgeting, on the other hand, is a more rigid and formal process that requires approval from multiple stakeholders and departments. Traditional IT budgeting often involves long-term contracts, fixed prices, and standard features that may not suit the specific needs of each customer. Traditional IT budgeting can also limit the innovation and agility of IT teams, as they must adhere to predefined plans and policies that may not reflect the changing market conditions and customer demands.
Partner Managed Enterprise Discount Program
Partner-managed Enterprise Discount Programs (EDP) provide all the benefits of an AWS-direct EDP with the added benefit of enabling third-party management, optimization, and tracking of monthly spend. When customers provide strategic third-party visibility into monthly spend, they give themselves additional opportunities to leverage spend and ensure complete utilization. Specifically, partner-managed EDPs allow traditional IT spending to be incorporated into the EDP budget.
With the added visibility, partners managing EDPs can leverage this committed spend on the customer’s ongoing purchase, expansion, and renewal of Wi-Fi, routers, firewalls, and other networking components available on the AWS Marketplace. Marketplace solutions must meet AWS consumption requirements, so SaaS-based platforms such as Juniper MistTM and SD-WAN are ideal options.
These SaaS platforms not only satisfy EDP purchase requirements but also provide maximum flexibility on deployment. On-premises deployments leveraging these SaaS solutions are encouraged by AWS, and when packaged as private offers, SaaS-required hardware, such as access points, can be bundled into the solution. Those partners qualified to manage EDPs with expertise in these SaaS solutions provide excellent value for EDP customers.
Advantages of Budget Consolidation on Cloud Marketplaces
Unified Billing & Management
One of the main benefits of cloud marketplaces is that they offer a unified billing and management system for multiple cloud products and services. Customers can pay for what they use, track their spending, and optimize their cloud costs across different providers. They can also access discounts, promotions, and incentives from marketplace operators and vendors. Again, marketplaces allow the cross-pollination of cloud and on-premises deployments by consolidating purchases.
Using the convenience and flexibility of a single cloud-based purchasing portal allows customers to tie in their legacy purchasing system to maintain a consistent approval process, track spending, and remove overlap between traditional IT systems and cloud marketplaces.
CapEx vs. OpEx
Cloud marketplaces can help organizations optimize their IT spending by allowing customers to leverage the collective bargaining power of cloud marketplace providers and customers to negotiate better prices, terms, and conditions with IT vendors.
Another benefit of Private Offers is that they are OpEx rather than CapEx expenses. OpEx (operating expenses) are the daily costs of running a business. CapEx (capital expenses) are the costs of acquiring or upgrading fixed assets, such as equipment or buildings.
OpEx is generally more flexible and tax-deductible than CapEx, which requires upfront investment and depreciation over time. By purchasing software and services through Private Offers, customers can avoid the high upfront costs and long-term commitments of CapEx and instead pay for what they use monthly or annually. This model can help customers optimize their cash flow, reduce risk, and adapt to changing business needs.
Today, with the continued innovation of cloud marketplaces, leveraging the cloud means more than migrating workloads and decommissioning data centers. Convenient access, aggressive promotions by cloud providers, SaaS solutions, and the inclusion of value-added resellers mean that customers can take a holistic view of their cloud and IT spend. Cloud marketplaces are the gateway to “savvy” procurement and finance teams looking for efficiency and cost-effectiveness.
By understanding not only the technology options but also the financial and tax implications of purchasing on cloud marketplaces, customers blur the line between cloud and IT budgets, maximizing flexibility and options for their companies.
