GCP Marketplace

Summary

Sourcegraph has listed Sourcegraph Cloud in the GCP Marketplace. This enables GCP customers to procure via the GCP Marketplace, much in the same way that iPhone users can purchase in Apple’s AppStore. Note that only Sourcegraph Cloud is available currently, though other SKU’s may be able to be transacted via Private Offers, depending on the specific circumstances.

Benefits

There are multiple benefits to being listed on the GCP Marketplace:

  1. Simplifying the procurement cycles - customers typically buy substantial amounts of software via their cloud providers. So there are most likely fewer steps in purchasing via the GCP Marketplace. GCP circumvents the need for new vendor set up. It also removes any negotiations around payment terms or other financial mechanics.
  2. Activation of existing budgets - many customers (including Sourcegraph!) have committed spend agreements where customers commit to spend a certain amount with GCP over a certain period of time (typically multiple years). Marketplace agreements are counted towards these commitments. Thus budget justification is often easier within the GCP Marketplace than it is outside of GCP Marketplace, and there may be less scrutiny on transactions. Further, with today’s economic environment, some companies may have estimated larger spend than they are now forecasting, meaning there are ‘stranded’ budget dollars within GCP.
  3. Alignment with GCP - Google Cloud sales reps are paid on Marketplace deals. They are also paid on both commitments and consumption for their end users. Sourcegraph obviously promotes consumption. Doing deals through the Marketplace makes it easier to align with your Google sales counterparts on your accounts.
  4. Overall Sourcegraph credibility - for organizations that may not know Sourcegraph’s brand, GCP should provide additional brand credibility.

Transacting via GCP:

  1. The customer needs to have a GCP account from which they can transact. The customer will need someone with “Admin Rights” to access and to “accept” the Sourcegraph offer.
    1. Make sure your champion finds out who this person is within their organization well in advance of transacting.
  2. Sourcegraph’s public listing aligns with our publicly available pricing of $99 / month. Note that the pricing is listed as $2,083.34 / month, as GCP requires monthly pricing, though there is a 12 month minimum. Additionally, customers can purchase additional monthly users at $99 / user / month from the public listing. The public listing references our standard terms and conditions.
  3. The large majority (99%+) of customers transact on GCP via a “Private Offer.” Think of the Private Offer as the Order Form that we sign with our end customer. Private Offers are customer specific and can be tailored with specific deal parameters.
  4. The customer needs to have an agreement to govern the contractual relationship with Sourcegraph. The private offer can reference either our standard terms and conditions or a separately negotiated agreement. Standard Sourcegraph contract negotiation guidelines apply.

Other notes:

  1. Make cloud strategy part of our discovery process. Find out where your customer platforms, whether they like to buy via Marketplaces, if Marketplaces will facilitate justifying budget and finalizing procurement.
  2. Involve the Partnerships team early in the cycle to insure alignment on how the deals are processed.
  3. Opportunities must still be created, forecast, and managed in Salesforce, just as any other opportunity.
  4. The full value of the opportunity should be represented in Salesforce. The GCP discount is 3%, but that is reflected in GAAP accounting and not as ARR.
  5. Please make sure to do discovery on which marketplaces your customers and prospects utilize.
  6. Sourcegraph is not currently listed on any other Marketplaces, though AWS is currently in planning stages (as of January 2023).

If you have a potential GCP opportunity which you would like to pursue, please reach out to tom.pinckney@sourcegraph early in the process for alignment, guidance, and collaboration.