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    Selling Software on Cloud Marketplaces Is a Mess. Suger Wants to Fix That.

    ManufacturingNews

    Selling Software on Cloud Marketplaces Is a Mess. Suger Wants to Fix That.

    For software companies, the shift to cloud marketplaces isn’t slowing down.

    Last updated

    Selling through cloud markets appears to be an obvious choice for software companies. Customers are already spending billions of dollars on AWS, Microsoft Azure, and Google Cloud, so meeting them where their budgets are set should be straightforward. And, as cloud providers double down on their marketplace strategies like lowering costs, increasing co-marketing expenditures, and integrating procurement tools, SaaS sellers have more incentive than ever to pursue this channel.

    However, the reality is far from flawless. Listing a product on AWS or Azure is not the same as uploading an app to an app store. It takes months of engineering development, intricate integrations with billing and CRM systems, and continual maintenance as the firm grows. High-growth organisations frequently allocate entire technical teams to marketplace operations just to keep things running smoothly. Some, like as CrowdStrike, even employ specialist "alliance operations analysts" to manually handle lead registration, usage reporting, and cross-platform reconciliation.

    Jon Yoo and Chengjun Yuan saw this problem firsthand during their time at Salesforce and Confluent. Instead of watching companies throw more engineers and operations staff at the issue, they launched Suger, a platform designed to automate SaaS sales across cloud marketplaces.

    Since its launch at the end of 2022, Suger has attracted over 200 customers, including Snowflake, Notion, and Intel. The company just closed a $15 million Series A funding round led by Threshold Ventures, with backing from Craft Ventures, Intel Capital, and Y Combinator. Yoo said interest was strong, with multiple term sheets coming in quickly—especially from investors with portfolio companies struggling to manage cloud marketplace sales.

    by AIM Media HouseFree · No paywall

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    About the author

    Anshika Mathews

    Anshika is the Global Media Lead for AIM Media House. She holds a keen interest in technology and related policy-making and its impact on society.

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