A core challenge partners are facing is how to stand out from the competition in the increasingly competitive cloud market while at the same time protecting their price points and margins. To address this challenge, we commissioned IDC research and recently launched the Differentiate to Stand Out eBook, a part of a 5 part series focused on how partners can modernize their go-to-market strategy.
In this eBook, we explore a variety of ways you can differentiate your cloud business to stand out from the herd, including the following:
1. Establish a vertical or industry focus
Over 80 percent of cloud oriented partners (those who earn 50 percent or more from cloud revenue) are seeing big wins from pursuing a vertical and/or industry focused strategy, stating that it’s either important or very important to their growth strategy.
2. Productize intellectual property
Packaged IP sees an average gross profit margin of 70 percent – that’s more than all other areas of business including resale, professional services, and managed services. Additionally, packaged IP creates real stickiness with customers that helps to lock out the competition.
3. Specialize with technology expertise and service
Partners who are able to specialize in a particular technology focus area and/or by providing exemplary service earn the upper hand and are more able to gain trust and long term relationships with their customers than those partners who pursue an “all things to all people” strategy.
Partners that create differentiation strategies easily win more business, increase profitability, and better serve their customers. Want more insight and best practices that can help you stand out and deliver on the differentiation strategies above? Grab your copy of the eBook today. I also welcome you to check out my session from WPC where I dive deep into these topics and highlight two of our rockstar partners that created a strong go-to-market strategy by going vertical.
Have you differentiated your cloud business? What have you learned? Share your tips in the comment area below.