At the Canalys Forum APAC 2025, Mark Iles, Chief Analyst for APAC Channels, delivered a data-driven and at times provocative look at how cloud marketplaces are becoming the dominant force reshaping the region’s technology ecosystem. According to Iles, cloud marketplaces are on track to reach US$163 billion in value by 2030, with a profound impact on how vendors, partners and customers engage, procure, and build digital strategies.
Half a Trillion Dollars Flowing Through Marketplaces
Iles noted that enterprises globally have already committed US$500 billion in cloud credits across major hyperscalers. These commitments—essentially large pre-paid budgets—are increasingly being spent on third-party solutions listed on cloud marketplaces, spanning SaaS, business applications, integration tools, and especially cybersecurity.
“What we’re talking about here is effectively half a trillion dollars of purchasing power flowing through marketplaces,” Iles emphasized. “And customers can reallocate these funds in flexible ways with far less friction than traditional procurement.”
This shift is giving rise to what Omdia calls the ‘billion-dollar vendor’ — ISVs generating over US$1 billion in annual marketplace sales. Companies such as CrowdStrike, Snowflake, Palo Alto Networks and others are already approaching or surpassing US$2 billion in marketplace-driven revenue.
The Channel’s Role Is Becoming Even More Critical
Although cloud marketplaces were initially designed to encourage direct purchases, Iles revealed that channel partners are rapidly becoming indispensable.
Omdia projects that:
- By 2027: Over 50% of marketplace sales will be channel-led
- By 2030: Nearly 60% will be channel-enabled
Partners are increasingly involved in private offers, co-selling, billing services, managed services, post-sales support, and customer success. As hyperscalers build deeper functionality into their platforms, partners are gaining new tools to package services and participate in revenue flows that previously bypassed them.
“This model simply does not work at scale without partners,” Iles stressed. “The channel becomes the value engine behind the marketplaces.”
The Mid-Market Opportunity Is Finally Emerging
Historically, marketplaces catered primarily to large enterprises. However, Iles highlighted a wave of changes enabling mid-market adoption:
- The rise of distribution-led marketplaces
- Third-party marketplaces operated by aggregators
- New reseller models introduced by major vendors
- Simplified listing, pricing, and private offer tools
Announcements from companies like AWS, Microsoft, and major distributors illustrate how the ecosystem is expanding beyond enterprise customers.
“We’re starting to see real momentum in the mid-market,” Iles said. “This opens a huge growth frontier across Asia Pacific.”
A New Era of Competition—and Combination
Iles concluded that the future will not be dominated by a single hyperscaler or provider. Instead, value will come from the combinations of providers, services, platforms, and channel capabilities.
“Success is not about choosing one provider over another,” he said. “It’s about how effectively you combine them. Those who can integrate the strengths of multiple clouds, ISVs, and marketplaces will unlock the biggest opportunities.”
Mark Iles emphasized in his closing remarks that the entire ecosystem — hyperscalers, ISVs, channel partners, and customers — is being fundamentally reshaped by the rise of cloud marketplaces and AI. Hyperscalers are driving platform innovation and consumption growth; ISVs are accelerating their cloud go-to-market motions; channel partners must pivot toward co-sell, co-marketing, and marketplace-led engagement; and customers now expect simpler procurement, greater financial flexibility, and faster access to innovation.
His message was clear: those who embrace the marketplace- and AI-driven model will lead, while those who hesitate will struggle to remain relevant.
A powerful insight that captures the future direction of the APAC channel and technology ecosystem.