GCP – Google Cloud Marketplace simplifies deals and improves economics
Google Cloud Marketplace – a universal catalog of solutions from Google and our partners – is an integral part of how we go-to-market with our valued partner ecosystem. We are excited to expand Google Cloud Marketplace – most notably and recently, with AI Agent Marketplace, a new category that enables customers to easily discover, buy, and deploy AI agents from Google Cloud partners. Today, we’re taking it further by announcing three initiatives that build upon Google Cloud Marketplace as a growth engine for customers and partners:
-
Improving partner deal economics to help partners retain more earnings by moving to a variable revenue share model
-
Simplifying commit drawdown for purchases through channel partners
-
Unlocking new workloads with the Marketplace Customer Credit Program incentive
- aside_block
- <ListValue: [StructValue([(‘title’, ‘Try Google Cloud for free’), (‘body’, <wagtail.rich_text.RichText object at 0x3e2048f624f0>), (‘btn_text’, ‘Get started for free’), (‘href’, ‘https://console.cloud.google.com/freetrial?redirectPath=/welcome’), (‘image’, None)])]>
Improving partner deal economics
Google Cloud Marketplace is moving to a variable revenue share model, with revenue share from 3% to as low as 1.5% for eligible partners and deals based on attributes such as deal size, renewal, channel shift, or migrations. This update will enable partners to improve deal economics and to retain more earnings.
Table: Google Cloud Marketplace variable revenue share schedule
Total Contract Value ($TCV) |
% Revenue Share |
Vendor net revenue % |
|
Channel Shifts, Migrations, Native Renewals |
Any TCV |
1.5% |
98.5% |
Private offer – New deal |
≥$10M |
1.5% |
98.5% |
Private offer – New deal |
≥$1M and <$10M |
2% |
98% |
Private offer – New deal |
<$1M |
3% |
97% |
Standard offer |
Any TCV |
3% |
97% |
Source: https://cloud.google.com/terms/marketplace-revenue-share-schedule
Here’s what partners have to say about the new variable revenue share model:
“We are increasingly seeing demand from customers to transact deals of all sizes on Google Cloud Marketplace. Google Cloud’s updated approach to variable and deal-level revenue share will help better align our go-to-market strategies and generate more revenue at scale.” – Shaun Clowes, Chief Product Officer, Confluent
Check out Confluent’s Marketplace Marvels video.
Simplifying commit drawdown for purchases through channel partners
In addition, we are announcing that starting June 9, 2025, all qualifying software purchases through Google Cloud Marketplace Channel Private Offers (MCPO) will result in 100% commit drawdown tied to the final price on the private offer. This change simplifies our channel commit drawdown policy for purchases made through a Google-authorized channel partner and enables the full qualifying amount of the private offer (up to an allowable 25% cap) to be applied to the customer’s minimum commitment obligations.
These initiatives build upon our continued commitment to support improved partner earnings and empower customers to select the solutions best suited for their needs from across our open ecosystem, reinforcing our dedication to partner success and customer choice. In 2024, we introduced our unique approach to Marketplace Channel Private Offers which allows customers to purchase ISV solutions through Google Cloud Marketplace via their chosen channel partner, and we are seeing the momentum. Third-party gross transaction value resold through channel partners has grown 170% from 2023 to 2024. Google Cloud Marketplace is differentiated in that channel partners continue to own the customer relationship, manage billing, invoicing, and recognize topline revenue, while customers can benefit by drawing down on their Google Cloud commitments through combined cross-channel commit.
“Unlike with other cloud marketplaces, we quickly learned that with Google Cloud Marketplace, we would be able to recognize the topline revenue of the transaction, and not only the margin. This has been a key differentiating factor for us and sets the scene for future engagements using Google Cloud Marketplace as a key strategic vehicle for us.” – Olav Østbye, CEO, O3 Cyber (O3C)
Unlocking new workloads with customer incentives
In addition, we are continuing to enhance our customer incentives with the general availability of the Marketplace Customer Credit Program (MCCP). This incentive can help partners drive net new workloads by providing customers with credits which can be applied toward purchase of Google Cloud first-party services. Customers can get up to 3% in Google Cloud credits by purchasing an eligible ISV solution for the first time, helping partners attract new customer wins and close deals faster.
View the MCCP brief to learn about how to take advantage of this incentive.
“We were able to speed time-to-value by purchasing a leading software vendor’s solution through Google Cloud Marketplace. In addition, we gained more value by leveraging the Google Cloud credits through MCCP to use toward additional innovations.” – Stefan Schloter, CIO Europe, Deutsche Telekom
Get started today with Google Cloud Marketplace
Google Cloud is dedicated to the continued success of our customers and partners. We believe these latest updates will help drive further growth across the ecosystem. Learn more about how to offer your solutions through Google Cloud Marketplace.
Read More for the details.