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In a conversation with Protocol, Tackle. Formerly, she was a management consultant for EY. She's based in Los Angeles and can be reached at acounts protocol. October 27, From lengthy contract negotiations to complicated licensing models, enterprise software is notoriously difficult to buy. But by aggregating third-party software, consolidating cloud spend, and standardizing contract terms, cloud marketplaces from Salesforce , Microsoft , Amazon , and others are promising to change that.

But marketplaces are also tricky to navigate, with stringent review processes for listing software, requirements around pricing and packaging, transaction fees, and more. That, plus the nuances between the different cloud marketplaces, can make it challenging to build an effective go-to-market strategy. In a conversation with Protocol, Jahnke spoke about the evolution of cloud marketplaces, how software purchasing is changing, and more.

This interview has been lightly edited for clarity and length. How have you seen cloud marketplaces evolve? We got started as a company in , and had our first customers in late AWS started their marketplace in Microsoft had a marketplace but really evolved it for Azure, I'd say with more acceleration in , So they have been around for a while, but really what we've seen is, the pandemic accelerated everything online. The pandemic no longer allowed sellers to meet with their buyers, and they had to figure out ways to engage with their buyers to let their buyers buy where they wanted to buy.

And with all things moving to cloud, the cloud marketplaces accelerated in prominence as being part of the solution. One, the cloud budget tends to be one of the fastest-growing budget line items in a lot of companies. It's probably not quite exactly at the pace of Moore's law, but Forrester said there's , software companies today; there will be 1 million by So a lot of expansion, and that puts a lot of pressure on buyers of software because now there's so many more titles, there's more empowered buyers, there's a lot of user-based software.

Procurement teams who once used to govern and protect the software process really closely no longer can do that; they have to find ways to enable buyers to consume more software. Marketplaces also become a pretty interesting avenue to enable them to get access to what they need when they need it, but still have some form of governance around it, where everything's landing on the same bill and the same contract.

How important is discovery? I imagine that [discovery] is going to become more and more prominent as more and more software is listed. Discovery today, I would say, is still not via marketplaces. You go to Google, you search for a problem, you look at the results, you read some content, that content helps you navigate to a place, likely that place ends up being a software company's website where you can read more about the product, you can look at customer case studies and see: Does this identify with me?

You can then go to their pricing page and figure out how to engage. Marketplace sometimes shows up in that journey, but oftentimes it doesn't. Photo: Tackle. I almost think back to the early days of Amazon. You went to Amazon to buy a book, you didn't think about buying a TV. Fast forward to , you buy just about anything there. I think that's the style of transformation that we'll see with shoppers shopping on marketplaces. But today, discovery happens outside. Because tokens are exchangeable and regularly change hands, the voting cohort is dynamic.

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You can then go to their pricing page and figure out how to engage. Marketplace sometimes shows up in that journey, but oftentimes it doesn't. Photo: Tackle. I almost think back to the early days of Amazon. You went to Amazon to buy a book, you didn't think about buying a TV. Fast forward to , you buy just about anything there. I think that's the style of transformation that we'll see with shoppers shopping on marketplaces. But today, discovery happens outside. There's this concept called a private offer with marketplace, where you can use the budget infrastructure and contract vehicle of the marketplace to do a custom deal, and these are the most prominent deals.

The majority of deals happening through the marketplace today follow this private-offer motion where someone discovers a product and decides that they want to buy it, but then determines that marketplace is the most efficient way to do it, and they construct a deal that ends up being a private offer and uses the marketplace infrastructure. Why in those cases do companies feel like going to the marketplace would be better than going direct?

I think budget is a big thing, budget consolidation and vendor consolidation. A lot of it comes back to that Moore's law for software theme: They don't want to maintain contracts with 1, different suppliers; they'd much rather have an enterprise agreement with Microsoft or an enterprise agreement with Amazon or Google and then a lot of sub-agreements underneath that, but it's still governed under the same budget.

We think being easy to buy for a software company is actually a killer feature. In a lot of industries, security as an example, there's so many security companies — and I'm not a security expert, but I struggle to interpret who does what. In what ways do you think this might shift the balance of power in the industry? If you have Amazon, Microsoft, and Google, and everyone's buying software through them, does that give them additional power, additional levers?

If you look at a lot of the at-scale SaaS winners today, they are multicloud equivalents of a native cloud service. But what the combination ends up being is people use core infrastructure services from the cloud in combination with third-party software to make up their solutions. Where I do think the cloud providers have a potential advantage in the future is just by capturing the [cloud] budget.

The marketplace actually starts to bring those two budgets together, and that's where I think there's an opportunity. I don't think it gives the clouds a chance to be all things to all people because there's a lot of momentum around multicloud.

What are the benefits to independent software companies in listing on one of these, or maybe multiple marketplaces? Beyond access to budget, the use of their contracts is very beneficial. Then the third benefit is the ability to co-sell with the cloud providers. What co-sell means is, we have a joint target customer, and they use Microsoft, for example, and I want to register a deal with Microsoft and be able to work together on that opportunity because if my software lands on Azure, it drives consumption for Microsoft, it delivers value to the buyer, so everyone wins.

The cloud providers have very large teams of people supporting companies, they have very large budgets associated with them and tapping into that, not just from a software company-driven standpoint but in collaboration, is a huge benefit. But that does take some skill to get to. The clouds have, say, or so services natively that their sellers are responsible to sell, and if there's , software companies, they can't sell , things or whatever that math works out to you, so you have to have a unique value proposition.

Why would the cloud buyer want to consume my software in this way? Why is it beneficial for them on their digital transformation journey with cloud? If you have good answers to those questions, co-selling becomes really powerful. What are some of the areas you see companies struggle with when they're trying to [list] on the marketplace, and then how does Tackle help? Bundil is an automated micro-investing platform where users can invest in a cryptocurrency of their choice using their spare change from purchases by rounding off their transactions to the nearest dollar..

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