Unraveling the Complexity of Hyperscaler Marketplace Software Procurement

This article talks about how to buy software through hyperscaler marketplaces like AWS, Microsoft, and Google. Experts from Insight and AWS share tips and tricks for making software purchasing easier and point out common problems to look out for. It also explains how Insight can help with your software buying using these marketplaces.

What is a Hyperscaler Marketplace?

A hyperscaler marketplace is like an online store for IT products and services. Think of it as a digital catalog where businesses can buy software licenses and other cloud-related items. Just like you might use Amazon Prime for everyday shopping, companies use these marketplaces to get what they need for their IT operations. AWS, Microsoft, and Google have all set up these platforms to make it easier for clients to get software and services.

Why Use a Hyperscaler Marketplace?

There are several good reasons why companies might choose to buy software through a hyperscaler marketplace:

• Cloud Commit Fulfillment: Many companies have contracts with hyperscalers that require them to use a certain amount of cloud services over time. Buying software through the marketplace can help fulfill these commitments, preventing them from losing money if they don't meet their usage targets.

• Consolidated Billing: Instead of getting bills from many different software vendors, all your marketplace purchases are consolidated into one bill from the hyperscaler. This can save a lot of time and simplify accounting.

• Easy Trials: Some products are available for free trial periods, letting you test them out before committing to a purchase. This is great for trying new tools without a big upfront cost.

• Natural Workflow for Cloud-Native Companies: For businesses that already do most of their work in a specific cloud environment, buying software through that same marketplace feels natural and easy.

When to Use the Marketplace vs. Traditional Methods

Deciding whether to buy through a marketplace or a traditional vendor can be tricky. Here are some things to think about:

• Talk to Experts: It's a good idea to talk to your account team to understand all your options. They can help you weigh the pros and cons of each method.

• Commitment Status: If you're close to the end of a cloud service agreement and need to use up your committed spend, the marketplace can be a great way to do that.

• Private Offers: Hyperscalers allow for private offers, which means you can get custom deals through the marketplace. This lets you get the benefits of marketplace purchasing while still getting tailored pricing.

• Support Needs: When you buy directly through the marketplace, you might have to handle support issues with the software publisher yourself. Working with a partner like Insight means you get their full support team involved, from pre-sales to post-sales.

Key Considerations for Marketplace Purchases

When thinking about using a marketplace, keep these points in mind:

• Product Availability: Not all software publishers or specific product versions are on every marketplace. You need to check if the software you need is available on your chosen platform.

• Contract Terms: Cloud-based technology often has 12-month terms, but some contracts can be for one, two, or three years. Understand the payment model and how it works.

• Offer Amendments: Some hyperscalers make it hard to change an offer once it's made. It's important to be sure about your purchase before finalizing it.

• Commitment Types: Different hyperscalers have different rules about how marketplace transactions affect your cloud commitments. Understanding these rules can help you plan your strategy.

Key Takeaways

• Multi-Cloud Expertise: Insight works with all major hyperscalers and software vendors, helping you find the best path for your software purchases.

• Strategic Planning: They can help you develop a strategy for your software purchases, making sure you get the most value and fulfill any cloud commitments.

• Renewal Management: Insight tracks your software renewals and reaches out well in advance to discuss any changes or new offers you might need.

• FinOps Support: Insight is strong in FinOps, helping clients plan for future cloud spending and optimize their financial operations.

• Advisory Role: They act as an advisor, explaining the nuances of marketplace purchasing, including pricing differences and return policies, so you can make informed decisions.