Blog Navigating the Hyperscaler Marketplace: Smart Software Purchasing Strategies
By Bob Agno / 18 Mar 2024 / Topics: Cloud Cloud cost optimization
Business moves fast, and the hyperscaler marketplace stands out as a way to reshape how enterprises procure and purchase software. But for many enterprises — and clients we speak with — this is still relatively new terrain.
The dilemma: Marketplace or traditional models?
If you’re thinking through the decision between using the hyperscaler marketplace and traditional procurement models, several considerations come into play. It's so important to evaluate the pros and cons of each approach and align the choice with specific business needs, but here are some key considerations that we’re seeing create a lot more clarity.
1. Marketplace as an extension of traditional practices
Think of the marketplace not as a total departure from traditional business practices — but rather as an extension. At Insight, we leverage our own multicloud expertise to seamlessly integrate marketplace transactions into the overall strategy of connecting the business with products and services that drive business growth.
2. Transaction options and support levels
As an organization, you have varied options within the marketplace. You can opt for a simple transaction by directly logging into the hyperscaler's portal, selecting products and making purchases.
While this approach offers simplicity, the support level may be minimal. On the other hand, working through a single partner can ensure comprehensive support, involving pre-sales and post-sales teams, account teams and operations teams.
3. Understanding commitments and maximizing discounts
Commitments to hyperscalers, such as AWS's EDP, add another layer of complexity. It’s critical to understand how marketplace transactions align with your cloud consumption commitments. This includes proactively leveraging the marketplace to maximize discounts, either during the initial contract signing or later to fulfill commitments.
Seeking guidance? Here’s what to look for in a partner.
We now live in a world where thinking beyond transaction is key. Business leaders are looking for guidance that encompasses strategic support and value addition at every stage — no matter the business process. For software purchases, the goal should be to lay out all your various options, considering factors such as time sensitivity, financial commitments and the need for customization, to name a few.
Expertise in Nuances and relationships
A partner needs to have the expertise to guide clients through the complexities of different marketplaces — ensuring informed decisions. Depth of relationships with ISVs and OEM software publishers is a good indicator for a partnership that will be built on trust and expertise.
Renewal strategies and future commitments
The most effective providers will be able to manage software renewals, providing clients with timely notifications and strategic insights. Aligning renewal timelines and combining them with future commitments means you’re able to navigate hyperscaler relationships more effectively over the long term.
What’s Insight’s approach?
As clients venture into the hyperscaler marketplace, the partnership with Insight becomes a crucial asset. While the marketplace offers the convenience of an "easy button" for software purchasing, the complexity demands thoughtful consideration.
Insight's ability to provide strategic advice, negotiate favorable terms and navigate the intricacies of hyperscaler relationships ensures clients get the most value from their software purchases — and that gives our teams a lot of satisfaction.
It's not just about clicking a button; it's about deploying technology with confidence, supported by the entire Insight team — before, during and after the transaction.
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Bob Agno
Senior Manager, Tech Enterprise Software
Bob has extensive selling experience in the software industry and leads North America cloud economics and software management at Insight. Prior to Insight, Bob spent 16 years at Microsoft where he held a number of high-profile customer-facing and management roles. Whether it's managing a global team or global account or running the software and cloud solution group for Microsoft’s East Region business, Bob keeps client satisfaction a top priority.
