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Cloud Marketplace Guide for ISVs: AWS, Azure and Google Cloud

Marina Campos
Marina CamposJuly 21, 202612 min. read
Cloud Marketplace Guide for ISVs: AWS, Azure and Google Cloud

ISVs (Independent Software Vendors, software companies that sell their products to other businesses) listed on the three major cloud marketplaces moved over $45 billion in transactions in 2025, according to Forrester projections. The number is not the surprise. The surprise is how many ISVs still treat cloud marketplace as a secondary channel.

They missed the shift. AWS, Azure, and Google Cloud converted their marketplaces from catalog storefronts into full transaction platforms. The enterprise buyer does not want to send POs, negotiate bilateral contracts, or wait for vendor onboarding. They want to click, use, and debit from the cloud commitment they already have.

For the ISV, marketplace stopped being an optional distribution channel. It is where the sales cycle shortens, bad debt disappears, and the client's budget is already pre-approved. This guide covers the three marketplaces with what matters to the ISV: listing mechanics, revenue share structures, go-to-market levers, and the decision of where to start.

What are cloud marketplaces and why ISVs need them

Cloud marketplaces are software discovery, purchase, and deployment platforms operated by the hyperscalers. They work like an enterprise app store: the buyer finds, tests, and contracts software without leaving the cloud console they already use. The spend counts toward their committed cloud consumption agreement, removing the budget-approval friction that gums up traditional procurement.

For ISVs, three structural advantages make the channel unavoidable. The first is the compressed sales cycle: the purchase decision shifts from procurement to the technical team, which already has cloud budget allocated. The second is zero credit risk: the hyperscaler is the merchant of record, billing the client and paying the ISV regardless of the client's payment status. The third is the network effect: each new customer on the marketplace generates usage data that feeds recommendation algorithms, driving marginal acquisition cost toward zero.

There is a fourth benefit, specific to ISVs outside the US: the marketplace is the export route without a foreign tax entity. We expand on this in the final section.

AWS Marketplace: the most mature platform

AWS Marketplace has operated since 2012 and carries the most extensive catalog of the three: over 15,000 software, data, and professional services listings. For ISVs, maturity cuts both ways. The upside: an installed base of buyers fluent in AWS procurement, with native integration into tools like AWS Organizations, Service Catalog, and Private Marketplace. The downside: dense competition in saturated categories like security, monitoring, and DevOps.

How to list on AWS Marketplace

The ISV registers through the AWS Marketplace Management Portal and chooses between two SaaS product models: SaaS Subscriptions (recurring billing by usage tier or per-user, integrated with the AWS Marketplace Metering Service) or SaaS Contracts (upfront contract with predefined usage dimensions, auto-renewal, and tier upgrades). Fulfillment can be via API, container, or AMI (Amazon Machine Image) for legacy workloads.

AWS's fee structure is variable. For public offers, AWS retains between 3% and 20% depending on listing type and channel program. For transactions through Channel Partner Private Offers (CPPO), the ISV sets the wholesale price and the channel partner applies their markup. AWS charges no additional transaction fee on the ISV in this model.

[IMAGEM TECNICA type: comparison-table title: Listing Models Across Cloud Marketplaces data: | Rows: AWS Marketplace, Azure Marketplace, Google Cloud Marketplace Columns: Pricing Models | Standard Revenue Share | Resale Channel | Cloud Commitment Drawdown | GTM Differentiator AWS: SaaS Subscriptions, SaaS Contracts, AMI, container, professional services | 3-20% (varies by type) | CPPO (Channel Partner Private Offers) | Yes (EDP drawdown) | Largest installed base, integrated procurement Azure: Flat rate, per-user, metered billing, VM, container, professional services | 3% (Marketplace Service Fee) | CSP (Cloud Solution Provider), co-sell with Microsoft | Yes (MACC) | Co-sell with Microsoft teams, M365 ecosystem GCP: SaaS, VM, Kubernetes, dataset, AI agent | Not publicly disclosed; reduced-fee program for strategic partners | Channel partners via Private Offers | Yes (commitment drawdown) | Gemini Enterprise agent ecosystem, Private Marketplace source: Official AWS, Azure, GCP documentation and partner portals language: en ]

Go-to-market levers on AWS

AWS pushes two mechanisms for ISVs to scale revenue. The first is ISV Accelerate: a co-sell program where AWS sales teams qualify and route opportunities to partner ISVs. The second is CPPO: the ISV authorizes resellers to create private offers with custom pricing, and the channel owns the contractual relationship with the client. For ISVs operating across borders, CPPO solves a structural problem: the local channel invoices the client in-region, eliminating cross-border payment friction from the end customer's perspective.

AWS also offers free trials and quick start deployments that reduce evaluation friction for the buyer. ISVs publishing on AWS Marketplace should invest time in listing quality: screenshots, demo videos, architecture documentation, and use cases are the factors that most impact conversion rates, according to data from the AWS Marketplace Seller Guide.

For a detailed step-by-step on publishing, the practical guide to listing on AWS Marketplace covers the full registration, technical validation, and pricing setup process.

Azure Marketplace: the Microsoft ecosystem as differentiator

Azure Marketplace differentiates on one point: native integration with the Microsoft 365, Dynamics 365, and Power Platform ecosystem. For ISVs selling to the Microsoft-first enterprise buyer, Azure Marketplace is the path of least resistance. The client already signs in with Microsoft Entra ID, manages licenses through the Admin Center, and provisions the software to their corporate tenant in minutes.

Revenue share and listing structure

Microsoft operates on an agency model with a fixed, transparent fee: 3% Marketplace Service Fee on the license value. The ISV sets the price, Microsoft bills the client, retains the fee, and remits 97% to the ISV. For comparison: in a traditional B2B direct sale with a procurement intermediary, the channel spread typically ranges between 15% and 30%. Microsoft's agency model compresses that spread to single digits.

SaaS listing on Azure Marketplace requires technical integration via SaaS Fulfillment APIs and Microsoft Entra ID authentication. The ISV can choose among four listing options: Contact Me (no transaction), Free Trial, Get it Now (Free), and Sell through Microsoft (transactable, with billing via Microsoft).

Pricing supports monthly or annual flat rate, per-user, and metered billing for consumption-based charges. Microsoft also allows contracts of up to 5 years with flexible payment frequency in private offers, accommodating high-value enterprise deals.

Co-sell and CSP: the levers others do not have

The co-sell program with Microsoft is the most underrated GTM asset on Azure Marketplace. Microsoft's global sales teams carry quotas tied to partner-generated revenue. An ISV with co-sell ready status enters Microsoft's internal CRM and starts receiving qualified leads from Microsoft sellers who identify fit with the ISV's solution. No other hyperscaler offers an internal sales force aligned to partner quotas at this scale.

The Cloud Solution Provider (CSP) program allows Microsoft resellers to package the ISV's software with managed services, Azure consumption, and local support. For ISVs operating in regions with complex local billing requirements, CSP solves the same problem as CPPO on AWS: the local channel is the invoice issuer, removing the fiscal friction of direct cross-border procurement.

Google Cloud Marketplace: AI as the growth engine

Google Cloud Marketplace is the newest of the three but the one that accelerated fastest in 2025-2026. The reason: integration with the Gemini Enterprise ecosystem and Agent2Agent protocol. GCP positioned its marketplace as the discovery point for enterprise AI agents, with a curated catalog of solutions validated to run on Google Cloud infrastructure.

Commitment drawdown as the sales engine

Google Cloud Marketplace's biggest commercial asset is commitment drawdown: third-party software purchases on the marketplace count against the client's committed cloud spend with Google Cloud. For an enterprise client with $5 million in annual committed spend on GCP, buying software through the marketplace means using budget already provisioned, with zero new approval required. The ISV benefits directly: the barrier to a first purchase drops from "approve a new vendor" to "click and debit from the existing commitment."

Listing SaaS on GCP Marketplace requires publishing through the Producer Portal and integration with Google Cloud Identity. The marketplace accepts SaaS, VMs, containers (GKE), datasets, and, since 2025, AI agents compatible with Gemini Enterprise. GCP's revenue share is not publicly disclosed in a standardized format like Azure's; strategic partners negotiate reduced rates.

Procurement governance on GCP is a differentiator for ISVs targeting large accounts: Private Marketplace allows the client's cloud administrator to create a curated catalog of approved products, and an ISV listed in that catalog gains an implicit compliance stamp. Getting into a Fortune 500's Private Marketplace is a competitive moat that protects revenue against unapproved competitors.

How to choose between AWS, Azure, and GCP

Early-stage ISVs tend to make the sequencing mistake: they try to list on all three simultaneously and dilute their integration investment. The right decision is sequential and based on two criteria: where your current customers are and which hyperscaler offers the GTM lever best aligned to your sales model.

Criterion 1: Where your ICP already buys cloud

If 70% of your prospects use AWS as their primary cloud, starting on Azure drains resources without traction. The enterprise customer buys software where they already have budget provisioned. SSO integration, consolidated billing, and console-native procurement are the factors that determine whether the purchase happens in two clicks or two months of traditional procurement.

Map your current customer base: which hyperscaler appears most frequently in their cloud contracts? Start on that marketplace, generate revenue, refine the listing playbook, and only then replicate to the second.

Criterion 2: Align your sales model with the GTM program

Each marketplace pushes a different revenue acceleration program. The ISV must match its sales model with the program the hyperscaler prioritizes:

  1. ISVs with a direct sales force and average deal above $50K/year: Azure Marketplace, for the co-sell program with Microsoft teams. The Microsoft seller's quota alignment with partner revenue is a pipeline multiplier that AWS and GCP do not replicate at the same scale.

  2. ISVs that depend on channel and resale for scale: AWS Marketplace via CPPO or Azure Marketplace via CSP. Both offer mature channel structures. The difference: CPPO on AWS is more flexible on custom pricing; CSP on Azure is more integrated into the Microsoft licensing ecosystem.

  3. AI and agent ISVs with a technical audience: Google Cloud Marketplace. The Gemini Enterprise integration and Agent2Agent protocol create a specific discovery channel for AI agents that the other marketplaces have not yet structured.

  4. ISVs with horizontal products (security, observability, DevOps): AWS Marketplace first, for the installed base and procurement mechanism maturity. Buyer density in these categories is highest on AWS.

Criterion 3: Technical integration requirements

Technical integration is not a commodity across the three. AWS requires integration with AWS Marketplace Metering Service and Entitlement Service. Azure requires SaaS Fulfillment APIs and Microsoft Entra ID authentication. GCP requires integration with Cloud Identity and, for transactions, Google Cloud Commerce APIs.

The engineering cost to integrate a marketplace is underestimated: expect 4 to 8 weeks of development for the first marketplace, with additional complexity for metered billing. The second marketplace takes 2 to 4 weeks because the integration architecture is already defined and the effort is adaptation.

[IMAGEM TECNICA type: decision-tree title: Marketplace Decision by ISV Sales Model data: | Root node: "What is your primary sales model?" Branch 1: "Direct sales, deal > $50K" -> "Azure Marketplace (Microsoft co-sell)" Branch 2: "Channel and resale" -> "AWS Marketplace (CPPO) or Azure (CSP)" -> "Check customer ecosystem: AWS-first or Microsoft-first?" Branch 3: "AI and agents" -> "Google Cloud Marketplace (Gemini Enterprise)" Branch 4: "Horizontal product / PLG SaaS" -> "AWS Marketplace (largest buyer base)" source: Criteria from "How to choose between AWS, Azure, and GCP" section language: en ]

International ISVs and Latin America: cloud marketplace as the export route

For ISVs based outside the US selling into Latin America, cloud marketplaces are the lowest-friction entry path. The traditional route requires local incorporation, a bank account in each country, multi-currency billing infrastructure, local tax compliance, and cross-border profit repatriation. The fixed annual cost of that structure rarely falls below $40,000 across accounting, legal, banking, and tax filing. For an ISV with $200,000 in LatAm revenue, that consumes 20% of margin before any tax.

The cloud marketplace eliminates the entity: the hyperscaler is the merchant of record, bills the client, retains the fee, and remits the net amount to the ISV. The ISV receives payment in their home currency without a local entity.

This is where the math shifts from convenient to structural. The hyperscaler handles billing and remittance, but the client still pays in a foreign currency through a non-local merchant. For the enterprise buyer in Brazil, Colombia, or Chile, that means FX spread, cross-border payment friction, and no local invoice for tax credit purposes.

Nexforce Marketplace closes that gap. For international ISVs selling into Latin America, the Nexforce Marketplace operates at no cost to the ISV and delivers seven structural advantages: lower end-client cost, no minimum deal size, zero bureaucracy, full LatAm coverage, region-native payment methods (PIX, boleto, local cards, installments), and software alliance leverage, where Nexforce generates savings on the client's other software spend to make the ISV's deal viable. The international ISV accesses the entire LatAm market through Nexforce's local infrastructure without opening a single entity.

For Brazil-based ISVs exporting globally, Nexforce Marketplace publishes the listing on Nexforce's marketplace and global cloud marketplaces (AWS, Azure, Google Cloud), eliminating the need for a foreign tax entity. The ISV receives payment in BRL in Brazil, without PIS/COFINS and ISS costs on exports and without shouldering the taxes and obligations of a company abroad, paying only a fee to Nexforce.

Frequently Asked Questions (FAQ)

Which cloud marketplace is best for a new ISV?

The best marketplace to start with is the one where your current customers already buy cloud. Map the cloud contracts in your customer base: if AWS dominates, start on AWS Marketplace. If your customers are Microsoft-first, start on Azure. The decision is ICP alignment, not technical preference.

How much does it cost to list SaaS on a cloud marketplace?

The listing cost (submission fee) is zero on all three marketplaces. The real cost is technical integration: 4 to 8 weeks of engineering for the first marketplace, plus ongoing maintenance of fulfillment and metering APIs. Standard revenue share is 3% on Azure, 3-20% on AWS, and not publicly disclosed on GCP.

Can you sell on all three marketplaces simultaneously?

Yes, but starting on all three at once is inefficient. The right strategy is sequential: list on the primary marketplace, generate revenue, refine the GTM playbook, and only then replicate to the second and third. The engineering cost of the second marketplace is 2 to 4 weeks.

Does cloud marketplace work for low-ACV ISVs?

Yes, but the benefit is smaller. Cloud marketplaces deliver the most value for products with annual deal sizes above $10,000, where traditional procurement is the bottleneck. For a $50/month self-service SaaS, channels like Stripe and Paddle may be more suitable. The inflection point is when the enterprise customer needs to issue a PO to buy: that is when the marketplace becomes the fastest route.

How does Nexforce Marketplace fit for ISVs selling into Latin America?

Nexforce Marketplace operates as an integrator: international ISVs access the LatAm market through Nexforce's local infrastructure without opening entities, with region-native payment methods and software alliance leverage, at no cost to the ISV. For Brazil-based ISVs exporting globally, Nexforce publishes the listing on its own marketplace and global cloud marketplaces (AWS, Azure, Google Cloud), eliminating the need for a foreign entity. The ISV receives payment in BRL in Brazil, with locally issued tax documentation, paying a single fee to Nexforce.

For a deeper dive into marketplace distribution, the article How to distribute SaaS via cloud marketplace covers fulfillment models and technical integration in detail.

References and Further Reading

Nexforce

Sell software in Latin Americawith no setup and saving 50%

Distribute your SaaS through the Nexforce platform scaling sales channels in a simple way

Run Simulation

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