Glossary

What Is Cloud Marketplace Procurement? Definition

Cloud marketplace definition: buying SaaS through AWS, Azure, or GCP marketplaces. 50 percent of marketplace spend typically counts toward EDP and MACC.

Key points

Definition

Cloud Marketplace Procurement: The procurement model in which a buyer purchases third party SaaS, data, AI, or infrastructure offers through the cloud provider's marketplace storefront (AWS, Azure, or Google Cloud), settles on the cloud bill, and applies the spend against an existing cloud commitment. Sits alongside direct ISV purchase and CSP as a third commercial purchase path.

The three marketplaces behave differently. AWS Marketplace counts 50 percent of standard ISV transactions toward EDP, with named strategic ISVs at 100 percent, and supports flexible private offers with custom payment schedules, EULA edits, and multi year commits. Azure Marketplace counts 100 percent of qualifying transactable offers toward MACC, including many third party ISVs participating in the multiparty private offer program. Google Cloud Marketplace counts toward committed use discounts only for native services, not third party ISV transactions.

The procurement value is operational, not just pricing. Marketplace consolidates the invoice, removes a separate MSA negotiation when the cloud provider's master terms apply, accelerates the legal review cycle from 60 to 90 days to roughly 14 to 30 days for a private offer, and burns down the cloud commitment.

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When marketplace wins versus direct

From our 2024 and 2025 sample of marketplace private offers: marketplace beat direct ISV pricing in 64 percent of cases when the buyer already had an EDP or MACC commitment in flight, primarily because the burn down value plus the private offer discount stacked. Marketplace lost to direct in 22 percent of cases, mostly where the ISV's direct sales team offered a deeper unit price discount to keep the transaction off the cloud rail. The remaining 14 percent were neutral. Methodology: NDA invoice and order form data, deal size brackets $50K to $4.2M annual, segment cuts US and EMEA.

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Frequently asked questions

What is cloud marketplace procurement?

Cloud marketplace procurement is the practice of purchasing third party SaaS, data, and infrastructure software through AWS Marketplace, Azure Marketplace, or Google Cloud Marketplace rather than direct from the ISV. A portion of the spend usually counts toward the buyer's cloud commitment.

Does marketplace spend count toward AWS EDP and Azure MACC?

What discount can marketplace private offers deliver?

Across 140 marketplace private offers benchmarked in 2024 and 2025, negotiated private offers landed 10 to 30 percent below ISV public list. The median private offer discount was 18 percent when an existing direct contract already existed, and 22 percent on net new ISV adoption with multi year commit.

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Send the EDP, MACC, or CUD proposal and the marketplace offers you plan to run through it. We return rate and burn down intelligence in 48 hours.

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Related reading

All Glossary

Pricing data and source text from the VendorBenchmark library. Co-sell reading is this site’s.