The Rise of Cloud Marketplace Driven Digital Economy

There is clearly a growing demand for cloud applications and services Marketplace driven by an ecosystem of third party developers and ISV partner community around a company’s core technology. Businesses across many vertical industries are leveraging the power of their core technology assets and are bringing to market bolt-on cloud applications and services built by developer community via a Marketplace. Not only are these companies differentiating themselves in the market through their open APIs and developer community but they are also augmenting their core product/solution portfolios with complementary third party applications and services.

Many large and medium size companies including Amazon, Salesforce.com, Intuit, Ford, Good Technologies, Aetna, Expedia, Nike, John Deere, FICO, Workday, GE, Avaya, Panasonic, VMware, etc. are leading this digital transformation through a cloud services Marketplace for their customers. A recent Harvard Business Review (HBR) article defined this transition as going from pipeline to platform business model. According to Oxford Research, 78% of enterprises believe that cloud services driven, on-demand consumption model enabled via a Marketplace will be a critical factor for gaining competitive advantage in the next three years.

While exposing core technology assets through open APIs is important, it is equally important to further enable commerce opportunities between the producers (developer community) of the cloud applications and the consumers (customers) using these on-demand services. Hence, a Marketplace for bringing the stakeholders such as the enabler of API platform, producers and consumers is a critical step in realizing the vision of Digital Economy.

An interesting example of Marketplace based business model shift is SITA, a leading global software and services specialist in the air transport industry providing information and communication technology (ICT) software applications and cloud services to more than 450 air transport industry members and 2800 worldwide customers including largest airline companies, top airports, aircraft manufacturers and cargo operators across 200 nations speaking 70+ languages. SITA recently launched Aero B2B marketplace for airline industry customers and has successfully built an innovative developer ecosystem around their core technology. Using Jamcracker’s cloud brokerage platform, SITA established their own private-branded cloud marketplace, enabling them to deliver higher value to their customers, through a new channel that’s driven by their ecosystem partners.

View this recorded webinar "The Rise of Marketplace Driven Digital Economy".

In this recorded webcast, you will learn how SITA, a global leader of software and services in the air transport industry drove competitive differentiation by enabling a digital economy through open platform ecosystem and cloud marketplace. Darren Ash, senior portfolio manager and business owner of SITA’s Aero cloud marketplace discusses the opportunities and challenges in transforming current pipeline based business model to the one that's cloud enabled.

Have a comment or question regarding this post? Contact us.