Unlocking Business Value with Microsoft's Commercial Marketplace

In today's complex software landscape, businesses are under pressure to streamline procurement, reduce costs, and maintain strong security and compliance. The Microsoft Commercial Marketplace offers a one-stop platform to help organizations efficiently source, evaluate, and deploy a wide range of software solutions, driving significant economic benefits.

A study commissioned by Microsoft and conducted by Forrester Consulting—The Total Economic Impact™ of the Microsoft Commercial Marketplace—examines the financial and operational benefits organizations can achieve by leveraging this marketplace. Below are key highlights from the study that showcase the value Microsoft Commercial Marketplace brings to enterprises.

Simplifying Procurement and Reducing Costs

One of the most significant challenges organizations face is the inefficiency of traditional software procurement processes. The Microsoft Commercial Marketplace streamlines these processes by providing a centralized platform where businesses can discover, evaluate, and purchase software solutions that are already vetted for security and compliance. This simplification leads to substantial time savings and cost reductions.

• Employee Time Savings: The study found that the marketplace reduces the employee effort required for procurement engagements by 50%. This translates to a cost savings of $2 million in internal labor costs over three years for the composite organization featured in the study.
• Optimized Azure Cloud Budget: By purchasing software through the marketplace, organizations can fulfill their Microsoft Azure Consumption Commitment (MACC) agreements, preserving significant discounts. The study estimates this optimization results in savings of $2.1 million over three years, again for the composite organization featured in the case study.
• Faster Vendor Onboarding: According to the study, the Microsoft Commercial Marketplace simplifies the vendor onboarding process, reducing the time required by 75%, which adds up to a savings of $50,900 over three years.

Enhancing Operational Efficiency

In addition to cost savings, the marketplace significantly boosts operational efficiency across various business functions:

• Finance and Payments Team Efficiency: The study reports a 30% reduction in the time finance teams spend managing invoices and billing processes due to the automation and streamlined workflows offered by the marketplace. This efficiency gain is valued at $570,700 over three years.
• Proof-of-Concept Cost Avoidance: With access to trial versions of software solutions on the marketplace, organizations can avoid upfront fees associated with proofs of concept, saving approximately $173,400 over three years.

Unquantified Benefits: Security, Compliance, and Agility

While the study provides a detailed financial analysis, it also highlights several unquantified benefits that add significant value to organizations:

• Improved Security and Compliance: All software solutions available on the marketplace are rigorously vetted for security and compliance, ensuring that organizations can confidently deploy solutions that meet industry standards and regulatory requirements.
• Faster Deployment of New Solutions: By utilizing the marketplace, businesses can significantly reduce the time needed to implement new software, enabling them to quickly leverage new tools and technologies.
• Flexible Payment Terms and Better Visibility: The marketplace offers flexible payment terms and a centralized platform for managing software assets, giving organizations better visibility and control over their software ecosystem.

Cost Considerations

While the marketplace offers numerous benefits, organizations do incur some costs associated with its adoption:

• Implementation and Training: The study estimates that organizations will spend $69,000 on implementation and training over three years.
• Ongoing Management: Managing the marketplace usage requires dedicated resources, with an estimated cost of $656,500 over three years.

Impressive ROI

Overall, the study concludes that the Microsoft Commercial Marketplace offers a compelling return on investment (ROI) of 587% over three years, with a net present value (NPV) of $4.26 million and a payback period of less than six months. These figures underscore the marketplace's potential to drive significant financial and operational benefits for organizations of all sizes.

Conclusion

For businesses looking to streamline their software procurement processes, reduce costs, and enhance operational efficiency, the Microsoft Commercial Marketplace presents a powerful solution. With its robust platform, organizations can access a wide range of vetted software solutions, optimize their cloud budgets, and gain valuable insights into their software ecosystem—all while enjoying substantial cost savings and improved efficiency.

By leveraging the Microsoft Commercial Marketplace, organizations can not only meet their immediate software needs but also position themselves for long-term success in a rapidly evolving digital landscape.

For publishers of Software on the Azure Marketplace, these benefits should be clearly communicated to potential buyers (subscribers). A compelling business case will take the benefits offered by the solution and the Azure Marketplace into account.

Whether you are an organization looking to procure via the Azure Marketplace or a software vendor looking to publish and sell through the Azure Marketplace, reach out to our SureStep Ambassador team at This email address is being protected from spambots. You need JavaScript enabled to view it. for expert guidance, support, and further information.