Tackle.io CEO John Jahnke is an expert in helping independent software vendors (ISVs) drive revenue through cloud marketplaces from the likes of AWS, Microsoft and Google Cloud, and believes 2023 is the year solution providers need to dive deeper into the $15 billion cloud marketplace opportunity.

“We have seen over the last two years, a big acceleration in channel partner-plus ISV-plus-the cloud marketplace provider—and I think that’s only going to accelerate,” Tackle.io CEO Jahnke tells CRN. “For example, AWS created a program called CPPO (Channel Partner Private Offers). Roughly a little north of 20 percent of our customers take advantage of the CPPO program today.”

“Similar to how every channel partner is trying to figure out, ‘What is my strategy in this new era of cloud?’ Cloud marketplaces and cloud go-to-markets are almost the next chapter in that story,” Jahnke said.

[Related: AWS Marketplace’s ‘Incredible’ New Vendor Insights Tool]

$15 Billion Cloud Marketplace In 2023

Tackle.io works with more than 550 software companies to help them capture the increasing amount of IT spending that’s headed to the world’s leading cloud marketplaces including AWS, Microsoft Azure and Google Cloud.

Market data from the Boise, Idaho-based company projects $15 billion of software sales will flow through the hyperscale cloud marketplaces in 2023 alone. IT research analyst firm Canalys estimates that cloud marketplaces will grow to over $45 billion by 2025.

ISVs and channel partners leverage cloud marketplaces as a new route to market where customers can draw down on their cloud committed spending contracts, including buying third-party software, as well as streamline the procurement process. The Tackle Platform helps customers start selling their solutions on marketplaces, better co-sell with cloud providers and help align their business strategy with the cloud providers to accelerate sales.

Jahnke said the largest cloud providers have all lowered their marketplaces fees in recent years, allowing more profits for ISVs and channel partners. “Microsoft and Google last year changed their fee structure to be more competitive and more aggressive, where they lowered the fees from a Marketplace standpoint in order to go on the offensive to capture share,” he said.

Jahnke has been CEO of Tackle.io since 2018 following a vast IT career working for the likes of Cognizant, Pivotal and EMC. In an interview with CRN, Jahnke takes a deep dive into the current state of the cloud marketplaces as well as the future.