Google Cloud unleashes three huge enhancements to the Google Cloud Marketplace aimed at driving partner profitability. Here’s what every Google partner needs to know.
Google Cloud is revamping its online marketplace with three big enhancements including a new customer incentive and Google moving to a variable revenue share model aimed at making channel partners more profitable.
Partners can now receive more earnings by moving to Google Cloud’s new variable revenue share model, which includes a 1.5 percent to 3 percent revenue share for partners and deals, according to Google Cloud’s Dai Vu, managing director of Google Cloud Marketplace and ISV GTM Programs.
The revenue share percentage allows partners to retain a larger portion of earnings based on things like total contract value (TCV), deal size, renewals or migrations.
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“This update will enable partners to improve deal economics and to retain more earnings,” said Vu in a recent blog post.
The Mountain View, Calif.-based tech giant’s online marketplace enables users to find, procure, buy and sell software solutions and services from Google Cloud, Google channel partners, and independent software vendors (ISVs). Google Cloud Marketplace enables channel partners and ISVs to more efficiently sell their solutions to a global audience as well as create unique joint solutions to offer to a broader customer base.
Channel Commitment Drawdown With 25 Percent Cap
Starting June 9, all qualifying software purchases through the Google Cloud Marketplace Channel Private Offers (MCPO) will result in 100 percent commitment drawdown tied to the final price on a 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 percent cap—to be applied to the customer’s minimum commitment obligations,” Google Cloud’s Vu said.
He said the goal is to better streamline the buying process through channel partners, improve partner earnings, and enable customers to select the best solutions for their needs from across its ecosystem.
Launched in 2024, channel private offers lets customers purchase Google Cloud channel solutions via the marketplace from partners.
Third-party transaction value resold through channel partners grew 170 percent from 2023 to 2024, Google said.
Cloud commitment drawdown refers to the financial amount that a customer is obligated to provide based on their deal agreement.
“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,” Vu said.
New 3 Percent Incentive Via MCCP
Google Cloud has made generally available its new Marketplace Customer Credit Program (MCCP), which now offers customers up to 3 percent in Google Cloud credits for first-time ISV solution purchases.
The incentive allows cost savings for customers looking to buy software solutions from Google and its partners.
“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,” Vu said.
The MCCP encourages first-time software purchases with incentives and supports innovation in AI solutions for ERP systems aimed at creating low-friction paths for customers to explore new technologies.
