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What’s driving the rise of cloud marketplaces?

Every major tech company, distributor, and large SaaS provider is getting into the cloud marketplace game. And it’s only getting bigger. Analysts are positive that cloud computing will continue to grow in all areas, including software, hardware, IT outsourcing, and supporting the latest innovations.Forrester predicts the public cloud marketplace will reach $191 billion by 2020. This makes sense as cloud is a boon for companies that don’t live in the tech world, but need technology to run their businesses.

Traditionally, companies have to make huge investments in infrastructure and software in the name of technology. With the help of cloud marketplaces, they can access all the tools they need without having to pour capital into something that no longer has the same long-term benefits. Using the cloud and Managed Service Providers frees you, taking care of your IT needs offsite while you focus on selling your products.

Where cloud marketplaces fill the need

Startups and SMBs (small and medium-sized businesses) are the new driving forces of the economy, creating millions of new job opportunities. In an era where technology changes rapidly, these companies are struggling to compete and remain profitable. Purchasing every new technology out thereis not a viable option, and frequent costly tech upgrades are usually out of the question. This is where traditional IT markets step out of the equation and cloud-based markets step in.

When it comes to technology, everything boils downs to one word: Solution. Companies need better, faster, scalable solutions to address today’s dynamic business needs. Cloud-based computing services are addressing these needs. They cater to businesses that are turning to their services in order to generate higher revenues by overcoming tech challenges. With more companies joining the ranks of cloud service providers, the pool of options is expanding dramatically.

Open-source collaboration nets a better product

Cloud marketplaces are increasingly becoming open source in nature. Manyservice providers are combining talents to build better apps. Think of thecloud marketplace as a giant shopping center rather than a standalone store.Collaborations between tech companies are opening up great opportunities for businesses that want to leverage the services of one particular service provider while also trying out the offerings from other similar providers.That’s a huge payoff.

One of the biggest advantages of this model is that it lets you shop around for different applications instead of settling for a complete software package, which often includes unnecessary apps and services. This really takes cost-effectiveness to a whole new level.

Where is the cloud marketplace heading?

In one of our recent episodes of CloudTalk, my co-host Brian Fanzo and I spoke to Albert Qian, the Global Marketing and Communications Manager at Ingram Micro. We discussed the growth of cloud marketplaces and where they’re heading. Qian put forth an interesting statement, saying that “theecosystem is the future” of cloud marketplaces. Finally, it depends on how well these tech companies can build their network of partners through relationships that will spur innovations. This will determine the future evolution of the cloud marketplace.

This post was written as part of the Dell Insight Partners program, which provides news and analysis about the evolving world of tech. Dell sponsored this article, but the opinions are my own and don’t necessarily represent Dell’s positions or strategies.

Image: Creative Commons 

Daniel Newman

After 12 years of running technology companies including a CEO appointment at the age of 28, I traded the corner office for a chance to drive the discussion on how the digital economy is going to forever change how business is done. I'm an MBA, adjunct business professor and 5x author of best-selling business books including "The Millennial CEO" and "The New Rules of Customer Engagement." Pianist, soccer fan, husband and father, not in that order. Oh and for work...I'm the CEO of Broadsuite Media Group and President of V3 Broadsuite, a family of marketing and media agencies that help companies be found, seen and heard in a cluttered digital world. I also give keynote speeches around the world on the topics such as digital transformation, technology and marketing.