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AWS Marketplace and SaaS Purchases: Tracking What You Bought

Why software bought through AWS Marketplace and other cloud marketplaces is easy to lose track of, and how to bring it under contract management and SAM.

By the MI Solutions SAM team8 min read2 exhibits

Cloud marketplaces such as AWS Marketplace let teams buy third-party software and have it billed on the cloud invoice. It is convenient, sometimes counts toward existing cloud commitments, and is increasingly how SaaS is sold to large customers through private offers. It also creates a blind spot: the purchase shows up as cloud spend, not as a software contract, so it can miss SAM, procurement review and renewal tracking entirely.

How marketplace spend flows

Exhibit 1
Marketplace software flows through the cloud billWhy it can bypass software asset management1BUYSubscribe in themarketplacePublic listing orprivate offer2BILLCharged on the cloudinvoiceAppears as cloud spend3REPORTSeen by FinOpsOften not by procurementor SAM4FIXRecord as a contractOwner, term, renewal,usage

Why it matters more each year

As more SaaS vendors sell through cloud marketplaces, and as buyers use them to draw down cloud commitments, a growing share of software spend can arrive through the cloud bill. In a typical first review, marketplace spend is larger than the SAM team expected:

Exhibit 2
Marketplace software can grow faster than the SAM team seesSoftware bought through a cloud marketplace, $K per quarter, illustrative organization$0K$100K$200K$300K$400K$500KQ1Q2Q3Q4Q5Q6Q7Q8On the cloud bill $460KRecorded as contracts $440KIllustrative. The gap closed after a monthly routine started in Q5 to record marketplace purchases ascontracts.

What to capture

For each marketplace subscription

A simple routine

  1. Monthly: share the line items

    FinOps shares marketplace line items with the SAM function.

  2. Record

    Each new subscription is added to the SAM system as a contract, with an owner.

  3. Track renewals

    On the same calendar as other software. See renewal calendar.

  4. Review usage before renewal

    As with any other SaaS.

How MI One helps

Frequently asked questions

Do marketplace purchases count toward cloud commitments?

Often, depending on your agreement with the cloud provider and the listing. Check the terms.

Who should own marketplace purchases?

The business owner of the software, with FinOps and SAM sharing visibility.

Should marketplace buying be restricted?

Use the same approval tiers as other software, and limit who can accept private offers.

See where your software budget goes

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