Key considerations to prepare for a partner-first power play

Globally, we’re inundated with technology. Many of the senior decision makers of today grew up in a digital world, and therefore have very different expectations than leaders of the past. When it comes to tech procurement, this new wave of decision makers expects the process to be quicker and more efficient than ever. As a result, much of the bureaucracy which once dominated the procurement landscape has fallen second to trust. Rather than tapping up a huge network of vendors, modern business leaders are showing a preference to a small handful of trusted partners that they believe can drive bigger transformational outcomes. These factors are fundamentally changing the channel industry and have created an opportunity for vendors to pursue a partner-first strategy and gain a competitive advantage. But what are some key considerations to operate a successful partner first approach in the channel?

EMEA’s appetite for partners

At Okta, more than 60% of our business goes through partners, and in the EMEA region, this percentage is even higher. It highlights the immense opportunity that EMEA represents for vendors. Unlike the US, which functions as a largely homogeneous market, EMEA is a rich mixture of distinct markets, each with its own level of maturity, opportunity and specific needs. This diversity means that the region requires a wide range of solutions, each delivered at different speeds and tailored to varying skill sets. For a single vendor, managing this broad and multifaceted landscape effectively can be a challenging task – it’s difficult to effectively cater for everyone at the same time. That’s why it’s so important to build a strong partner ecosystem. In doing so, vendors can leverage local expertise, navigate the complexities of the market more efficiently, and offer solutions that are well-suited to the unique needs of each market. This approach not only helps in addressing regional differences, but also in driving new revenue and expanding the customer base across EMEA.

Preparing internally

Adopting a partner-first strategy can bring numerous benefits, but these advantages will only be realised if the vendor organisation is properly structured to support the transition. Many vendors, including Okta when we first started shifting to a partner-first approach, encounter obstacles due to insufficient internal capacity. To address this, it’s essential for organisations to develop and implement the right structures, processes, and teams to effectively manage and drive this strategy. This goes beyond just setting up the basics; it requires full commitment from the senior leadership team to champion the initiative and ensure it is supported throughout the organisation, all the way down to the field level. This means providing ongoing education and enablement to align every level of the team with the new approach. As customers increasingly demand to interact through partners, the organisations that invest in comprehensive support systems and robust frameworks, and have senior buy-in, will be best positioned to excel. Ultimately, these organisations will be the ones that secure a competitive advantage and thrive in the channel.

Mastering the mid-size

Mid-level partners, and the value they bring, are crucial and shouldn’t be overlooked. Historically, many vendors have poured significant time and resources into big resellers and global system integrators such as Accenture, Deloitte and PWC. Whilst this is a critical  part of a partner-first strategy, it has led to less focus on the mid-sized players operating in the space between large global firms and smaller, niche partners. For instance, numerous regional boutique integrators are actively involved in transformation discussions on a more localised scale, yet they are still driving significant change for their customers. Vendors that recognise and tap into the growth potential within this mid-level sector can forge stronger relationships and partnerships. With end customers increasingly emphasising the value of the mid-size partners, vendors must position themselves to capture new opportunities within this key segment of the channel.  

Prioritising partner-first 

Any organisation that is serious about a dedicated partner-first approach should set a goal of channelling 80-85% of its business through its partner network. Once this significant milestone is achieved, the focus shifts to the next phase: maturing the organisation’s strategy to empower partners to operate more autonomously. This involves refining processes, providing support and fostering deeper relationships. The ultimate challenge is then to build a thriving ecosystem around this model. How can the organisation create a dynamic and self-sustaining economy that supports and enhances the partner network, driving mutual growth and success? This transition is key to maximising the potential of a partner-first strategy and ensuring the long-term viability and opportunity in the market.