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The Financial Imperative for ISVs to Engage in Marketplace Operations
In the rapidly evolving B2B software industry, Independent Software Vendors (ISVs) are faced with a golden opportunity that could be termed financially irresponsible to ignore. The potential to capture a share of the next $200 billion in marketplace transaction fees, alongside direct net revenue opportunities, is too significant to overlook.
Understanding Marketplace Dynamics
An insight from Boston Consulting Group's BCGonTech Editor IT Spending Pulse #6 highlights an intriguing shift in the marketplace landscape. The report points out a decline in marketplaces operated by individual vendors such as Salesforce and Atlassian. At the same time, hyperscalers are forecasted to generate up to $2 billion in marketplace transaction fees by the end of 2025. This revenue is expected to be further amplified by a 3-5X increase in cloud consumption driven by marketplace activities.
Challenges for ISVs
The current marketplace environment is highly competitive, especially with hyperscalers dominating the scene. While individual vendors like Salesforce and Atlassian have pioneered their transactional marketplaces focusing on integrations and third-party software transactions, they now face the challenges of aging systems, shifting strategies, and escalating costs.
A Strategic Alternative: Partnership Over Development
Instead of ISVs tackling the massive challenge of building their own marketplaces from scratch, a more strategic and resource-efficient approach could be to partner with organizations like MeasureMatch to deploy solutions like AtlasGM 🤝. This partnership route not only simplifies entry into marketplace operations but also enhances competitive edge by leveraging established, scalable technologies.
Enjoy scalable and accurate matching, new monetization, happy partners and delighted customers!
The Benefits of Dual Participation
Will it be easier for many large and small ISVs to throw in the towel and give the hyperscaler marketplaces all of the transaction fee opportunity, the data collection, the customer relationship control? Sure it will. Those ISVs that play the hyperscaler marketplace game AND operate their own transactional marketplaces (which will ultimately be strategically integrated with all of the generalist hyperscalers, specialist AI cloud platforms and whatever's coming next e.g. AtlasGM), will be in much healthier and competitively advantageous positions.
Playing the Long Game
The journey to efficient growth in the tech industry is a marathon, not a sprint. Embracing partnerships and strategic collaborations is essential. This approach not only aids in immediate growth but also positions ISVs advantageously for future opportunities and challenges.
Acknowledgment
Many thanks go to Roman Kirsanov, CEO at Partner Insight, for including the latest IT Spending Pulse in his newsletter. Here's the link for those interested in delving deeper: BCG's IT Spending Pulse.
Designed specifically for B2B software companies, AtlasGM addresses the critical need for these organizations to maximize the value for their customers and from their partnerships.
Understanding liquidity and price discovery is vital for participants in the MeasureMatch Marketplace and in marketplaces created by ISVs adopting the AtlasGM platform.
