Leading ISVs on Why Cloud GTM Will Grow to $100B by 2026

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We've extended our prediction, our last prediction centered around cloud go to

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market being

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50 billion by 2025.

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And we're extending that and expanding on it to say 100 billion by 2026.

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So we originally said that it'd be 15 billion this calendar year.

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That was a few years ago when we made that prediction.

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And all signals are saying we're exceeding that today.

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So the customer finds a lot of value in using their their commit dollars and

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transacting

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in an easier way for them.

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Cloud partners obviously are more sticky and have more revenue flowing through

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their platforms.

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ISVs like like a full story can benefit from closing, you know, more deals and

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upselling

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deals and then sales reps on on both sides.

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The cloud partner of the ISV benefit from the company and closing more revenue.

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Co-sell we've been tracking for for years and what we're seeing is that on on

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average

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a co-sell with AWS increases our wind ratio almost double.

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It decreases our sales cycle by I want to say it was 16 to 20%.

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Our deal sizes go up almost 300% and our contract terms actually are seven

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months longer than

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a standard standard contract.

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So co-sell brings in all of these intrinsic values by working with AWS along

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with helping

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drive more marketplace transactions, helping increase our mind share with AWS.

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So there's a ton of value that comes from our co-sell partnership with AWS.

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And then you mentioned about getting zero to a hundred million ARR.

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A third of that revenue came from the marketplace and we weren't even talking

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about the hundred

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million.

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I feel like until a few months before we actually got there because we had line

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of sight the

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marketplace was totally an enabler for that to happen.

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We pivoted towards marketplace just because we were running into a lot of

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customers across

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AWS and Microsoft Azure that were looking for a different procurement vehicle

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and channel

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and that was to make their purchases of ISV or third party software that was

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indirect.

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And so we ended up moving that route just because we heard a overwhelming need

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and requirement

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from the market that customers are starting to go that route due to I would say

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an overwhelming

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number of those customers had their cloud budgets allocated towards those

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specific areas.

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We've seen the shift in what our customers are asking for.

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We saw how marketplace was becoming more of a dominant procurement method and

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we identified

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the ability to work along with AWS to take our cloud go to market strategy

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further and

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then began working with tackle to help solidify that.

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This honestly has been a newer thing for us at rubric.

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But over the past year and a half, I'd say we've seen incredible growth.

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I think we're doing 10x more transactions through the marketplace than we did a

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year ago.

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And it's just continuing to increase.

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And the reason for that is customers are asking more for it.

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Customers are asking to transact through the marketplace a lot more.

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I think one, there's like the budgetary element.

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But second, it's the procurement cycles a lot faster, a lot simpler.

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What we're seeing is not only customers asking about it more, but our sellers

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also bringing

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it up a lot more.

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And so our sales seems to talk a lot more about the marketplace because they

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love the

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fact that a like the budgetary conversations become an easier conversation for

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them to navigate.

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And then the second thing is the deal cycles.

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Reducing our deal cycle and our sales cycle is a huge one, especially in this

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macro environment

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right now where we're seeing deal cycles really lengthen because of that.

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There are a lot more players involved in kind of getting deals approved.

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And what we notice is when deals happen through the marketplace, those deal

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cycles are reducing

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by a significant amount of time.

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Cloud GoToMarket just represents a new way to win.

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Maybe an easier way to win, a smoother way to win for everybody involved.

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I think in this climate too, everyone is trying to do more with what they have.

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And so when you have the opportunity to reach across the dance floor and grab

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the hand of

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someone at a cloud provider to say, "Hey, let's go make sure a deal closes."

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It's exciting, it's helpful.

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And you have no idea what's going to come from that.

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I think we measure what our behavior could turn into, but the personal

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relationships that

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are built with you, CoSEL, with the cloud provider can really change your year.

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And so I think the headline is Cloud GoToMarket allows you to do more with what

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you have and

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win more, win more awesome, and win a little bit easier.

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When you look at the customer base, everybody is looking at how they're going

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to mature

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their cloud model and/or how they're going to maintain a hybrid environment.

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The cloud's not going anywhere, it's only becoming more robust, especially when

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you're

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looking at that AI feature sets that everybody also wants to move in with.

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So that's where it's a holistic approach for all ISVs in being able to maximize

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their

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partnership and their ecosystems within their customer to really contribute to

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that value

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selling rather than just solution selling.

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