Google Cloud Marketplace changes highlight increased customer focus for 2023

Google has outlined plans to develop closer relationships with its cloud ecosystem in 2023, marking a shift toward greater collaboration with technology providers and independent software vendors (ISVs).

In this week’s blog, Kevin Ishpurani, corporate vice president of global ecosystem and channels at Google Cloud, said the tech giant wants to position the Google Cloud Marketplace as the “go-to destination” for cloud partners and customers to deploy enterprise applications.

The move builds on a year of rapid feature deployment to the Marketplace, which has seen the introduction of new functionality to provide greater flexibility in deployment, lower pricing, and private marketplace launches.

“Throughout 2023, we will continue to evolve the Google Cloud Marketplace as the destination of choice for our partners and customers,” Ichhpurani wrote.

“This will include adding more capabilities for resale partners to transact through Marketplace, faster onboarding of solutions, more accurate cost management, and new government capabilities to support customers in industries with specific purchasing requirements such as the US public sector.”

Ishpurani added that the new capabilities are expected to be rolled out over the next year.

Improved selection and transparency

Across 2023, Ichhpurani said Google Cloud plans to continue to “double down on customer choice” to provide a broader range of choices for Marketplace users.

The main focus here will be on “incubating partner innovation” and the ability for customers to explore workaround options – even when services overlap with Google Cloud services.

“This open approach will bring more innovation to customers and increase the Total Addressable Market (TAM) for our partners,” he said. “We will work closely with our partners to help customers update in every major product area.”

Ichhpurani said this will involve a concerted effort to develop a more “open” data cloud system.

The tech giant plans to support all major data formats and foster close relationships with key partners such as Databricks, Elastic, MongoDB, Palantir, and more than 800 organizations currently developing products on Google’s data cloud.

This strategy builds on a long-term focus to ensure that Google Cloud customers have greater flexibility and choice in terms of vendors and market partners. Last year, it launched the Data Cloud Alliance, which aims to break down barriers of data and siled choices.

Likewise, the company has pledged its continued commitment to the development of open source AI.

Service partner support

Ishpurani also confirmed his commitment to providing partner rewards and supporting the wider ecosystem.

Incentives and investments for Google Cloud partners grew more than 50% last year, and the tech giant aims to follow this lead by doubling spending and rewarding partners who “accelerate consumption and drive new customer acquisition.”

“Given the particularly large opportunity for our services ecosystem, we are making significant investments in providing new resources, programs and tools to help partners build their services capabilities and deliver success for customers.”

Intense competition in the market

Google Cloud’s sharp focus for 2023 comes amid a period of intense competition in the broader cloud computing space.

Recent research from Forrester reveals that Hyperscalers like Google, AWS, and Microsoft face an increasingly suffocating global marketplace.

Google’s 2021 price cut, which saw market fees drop from the previous rate of 20% for sellers, was seen at the time as a major step in enabling the tech giant to compete with AWS and Microsoft.

And while Google Cloud still maintains a lower market share than competitors, the past year has seen positive growth for this segment of the business.

Google Cloud experienced significant growth in the third quarter of last year, with revenue up 38%.

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