Introduction

Cloud marketplaces present fresh challenges and opportunities for buyers, while cost pressures remain from on-premises software support. Sourcing, procurement and vendor management leaders must adapt their approaches to control costs while enabling digital business growth.

In this Gartner whitepaper, you will discover the opportunities presented by cloud marketplace procurement. Learn about the benefits of cloud marketplaces, strategic planning, and analysis of their offering, and how to leverage a marketplace while managing the cost pressures of on-premises software support.

Key Findings:

  • Gartner estimates that over 25% of global 1000 companies are using online marketplaces in some capacity to purchase all types of technology, and that well over 75% have tried them. While cloud marketplaces create opportunities for fast digital growth, they also allow easy bypass of sourcing, procurement and vendor management (SPVM).
  • SaaS vendors foster application ecosystems to increase the availability of niche, add-on functionality, resulting in increased lock-in for existing customers buying from these partners.
  • SaaS vendors sell services using a primary pricing metric, but a lack of transparency around secondary metrics and their associated fees can lead to significant overspend for buyers.
  • Each year, support costs for legacy software increase, while the benefits gained from that support decrease, leading to more organizations seeking lower-cost third-party support options.

Gartner, Predicts 2020: Negotiate Software and Cloud Contracts to Manage Marketplace Growth and Reduce Legacy Costs, Jo Liversidge, Frances Karamouzis, Rob Wilkes, David Groombridge, James Smith, Christiaan Murphy, Dolores Ianni, 18 December 2019. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. The Gartner logo is a trademark and service mark of Gartner, Inc., and/or its affiliates, and is used herein with permission. All rights reserved.

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