overview
A: Simply put, alliances and partners are important because the market opportunity is so massive and there is power in teamwork. According to the Statista Public Cloud: Market Data & Analysis 2024 Report, public cloud services have generated approximately US$631.84 billion worldwide in 2023 and will continue to grow at a high rate of 18.49% until 2029. This covers 5 distinct cloud markets.
Given that size, technology vendors need extensions of their teams to sell, implement and support these systems. Systems Integrators can drive value and revenue through implementation, integration, and managed services. Surround-system ISVs can expand capabilities by integrating with the core systems.
There is a similarly impressive market opportunity for other innovative technologies – the market size in the Artificial Intelligence market is projected to reach US$184.00 billion in 2024, with an annual growth rate of 28.46%. And an ecosystem of partners is needed to support these solutions.
So, there is a significant opportunity for providers of all stages of the IT lifecycle, and all are inter-dependent upon others in the ecosystem.
A: It really boils down to fit and mutual value. There are so many ways that partners can complement each other, but each relationship may be slightly different. It’s important to understand what each partner needs, and what they can provide in return.
Partners can help each other with several levers. Some companies have fantastic engineering capabilities but don’t have the sales and marketing machinery. Some have a horizontal solution, but to be successful, need others to build industry-specific solutions on that technology. There are other levers as well including geographic footprint and coverage, entree into other market segments such as midmarket, SMB or Government, delivery models requiring global delivery centers, and relationships with key clients. So, it is important to be thoughtful in your partner relationships and really get to know the value each brings, and then implement the appropriate models.Â
A: That’s a hard one, but the first thing that comes to mind is industry and domain expertise. The days of being purely an expert on a technology stack are over – today’s clients are more demanding, their problems more complex, and they require an industry-first lens. For us here at Infinite, that is clearly our differentiator – very deep domain expertise in the business we serve: healthcare, banking and financial services, insurance, telco, media, high-tech and manufacturing.
For example, our insurance business unit specializes in scaling ethical AI adoption and closely monitors the evolving regulations surrounding AI in the insurance industry. Globally and within the U.S., AI related regulations are rapidly changing, with nearly a dozen states adopting the NAIC Model bulletin on the use of AI systems; we anticipate that many others will follow suit. Additionally, we participate in community and expert committees to provide thought leadership in this area. This level of expertise on crucial real-world topics adds significant value for Infinite, as well as for our partners and clients.Â
A: What we are seeing in the market is companies moving away from traditional scorecards that are heavily focused on resale revenue, influenced revenue and lead registration – all sales metrics – to a more well-rounded way to measure partner contribution and value. For example, the large technology vendors now place more importance on delivery excellence in the form of certifications, competencies, project success, and related KPIs as well as customer satisfaction and customer success. They realize that although partners bring revenue to each other, there are equally meaningful ways to deliver value.
A:Â One way to look at this is to examine the trends within the enterprise software and technology market, and the trends in partner programs run in parallel. For example, you see the continued movement to SaaS solutions, the focus on recurring revenue, and the importance of the lifetime value of a client. So partner programs are changing to mirror that. There are incentives for partners to not only obtain new clients, but grow wallet share with existing clients. Since recurring revenue and lifetime client value require exceptional client satisfaction, there is increasing focus to measure and reward client success.
I think the other trend, which is not necessarily new, but certainly on a rapid growth trajectory, is the proliferation of marketplaces. The hyperscalers are now focusing on not only marketplace offerings, but transactable marketplace offerings. And they are lowering the fees to make this channel more and more attractive.Â
