Is a Partnership Strategy Right for Your Business?
In today's competitive market, businesses must find innovative ways to grow. One potential route is through partnerships with software vendors. But is this strategy right for your organization?
This article explores how to assess whether a partnership strategy can add value to your business and whether or not you should make the investment.
1. Understanding a Partnership Strategy
First things first, what exactly does a partnership mean? Similarly to how it would be defined outside of the professional world, a partnership in business is when two complementary organizations collaborate for mutual benefit. For technology or consulting companies, this is aligning with software vendors and specializing in the development and architecture of their technology.
Common forms of partnerships found within the technology world are channel partners, value added resellers (VARs), independent software vendors (ISVs), and original equipment manufacturers (OEMs).
2. Key Benefits of Partnering with Software Vendors
I wrote an article on how partnerships can benefit your organization, but for those who haven't already read it, a few key benefits are below:
Access to Resources and Expertise
Brand Recognition and Credibility
New Revenue Streams
Improved Market Access
3. Considerations
Do you have the necessary investment—financially, in time, and in relationship-building? Most partnerships require an initial investment, whether it's a fee to join a partner program or becoming a customer of the vendor.
Many programs also require certifications or capabilities to maintain partner status and receive support. This can be a barrier for organizations unwilling to invest.
For large vendors, competition within the partner ecosystem can be a significant challenge. Standing out among thousands of partners requires a strong go-to-market strategy.
The initial investment is just the start. Developing a capable sales, product, or implementation team and strategy is key to a successful partnership.
4. Partner Readiness Assessment
Now that you've chosen to pursue a partnership, it's essential to ensure you're aligning with the right partners for your organization’s goals. Hyperscalers like Google, AWS, Salesforce, and Microsoft might seem like a good start, but a more focused, tailored approach is key.
Consider what your clients are requesting, your industry expertise, and the technologies that solve industry problems. Do you frequently work with predictive analytics, AI, or business intelligence? If so, a data and analytics partnership might suit you. If you’re solving repeatable problems with scalable models, an ISV or OEM partnership with Salesforce could be ideal.
If you're aiming for large digital transformations but lack resources, starting with niche work or partnering with a larger consultancy may help you scale while generating revenue.
Lastly, ensure the partnership aligns with your long-term growth strategy and strengthens your core capabilities for a quicker ROI.
A partnership strategy can be highly advantageous for technology or consulting businesses, but it’s not a one-size-fits-all solution. Carefully evaluating your organization's readiness, the potential benefits, and challenges will help you decide if it’s the right move for your business.
Ready to explore partnership opportunities? I'm happy to help you evaluate vendors and decide if it makes sense for your organization. Contact me to take the first step in your partnership journey.
