The increasing movement of private enterprises and, more slowly it’s true, public sector organisations’ IT systems to the cloud is driving a significant shift in the way that the procurement, sourcing, and tender processes work.
“Dramatic changes in the global economy, ongoing supply chain disruptions, the rise of a highly distributed workforce and the rapid digitalization of the consumer have pushed organisations to adapt swiftly and evolve to survive – not just from a procurement perspective but also their core business model,” said Kahly Berg, Senior VP, Digital Experiences, at SAP SE, reflecting on the findings of a 2022 survey and noting that “the digital marketplace is here to stay.”
The digital marketplace is “here to stay”
By this year, the majority of procurement professionals (54%) told SAP that they wanted to be buying goods and services primarily online, either through a vendor’s own site or a digital marketplace, with 44% of respondents citing a “one-stop shop for multiple vendors” as the most important feature in a digital marketplace.
More and more, public procurement divisions are turning to digital marketplaces, like AWS Marketplace, for a more competitive and cost-effective sourcing landscape.
AWS Marketplace functions as a digital repository of third party cloud based software, made up of business applications, reporting tools, and migration utilities. Hosting more than 2,000 independent software vendors offering more than 12,000 products, the platform serves as a comprehensive resource for public sector procurement.
According to Jim Helou, worldwide leader of business development for AWS Marketplace public sector, there is a widespread push among states, cities, and counties in the US to transition their primary applications from on premises data centres to cloud platforms.
In meeting that need, the AWS Marketplace has emerged as a crucial middle man between public sector entities and service providers. Simplifying product exploration is central to this effort, with the platform’s landing page providing IT directors with a user-friendly interface to navigate its extensive catalogue.
Moreover, the Marketplace significantly expedites the timeline for researching, purchasing, and provisioning software. Procurement, often a daunting task within the public sector, is notably streamlined through Marketplace, reducing the procurement process by close to 50%.
