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How partnerships will create value for IT businesses

FlorianKampes

 

In my previous blog post I talked about the definition of a cloud ecosystem and the lone wolf approach. Now we want to dive deeper in how partnerships could help you in a cloud ecosystem.

Build a house1.jpgAn example I frequently use is that of building a house. There may be some people out there that can build a house all by themselves – from designing the house to putting the last nail on the roof. But I can imagine that, just like me, most of the people out there are not able to do this. We need someone who could help us. An architect, who will create the plans for the house and maybe control the building process. But can the architect build the whole house on his own – No!  He will need to find the right experts to help him build the house – a plumber, electrician, painter, and a lot of other people. Everybody involved has their own skillset which they bring to the process of building the house.

When we talk about the cloud ecosystem, it is pretty much the same approach.

In this situation, the “lone wolf” approach wouldn’t be a good solution. In the modern fast paced world, time to market is important. As companies are transforming to a service led business, the best way would be to focus on their strength and identify where they need help. They need to establish an ecosystem that will help them meet their customer’s needs. The ISV has its software, the SP has its services and the hardware vendor has its hardware, figuring out how to work within this ecosystem is what generates value to the business, and to their customers.

As an example for why the right ecosystem is so important- Consumer Service Models

What happens to an ISV who does not provide a consume model of its software? The customers are demanding to have the ability of accessing the software as a service out of the cloud. They don’t want to worry about the hosting and the operation of an information system. This means, the end customer probably won’t buy the software if there is another ISV who could provide a service model. This is missed revenue for the ISV, but also missed revenue for other members of the ecosystem, such as the service provider that could have hosted the software.

With a good working ecosystem, the ISV could offer a consume model of their software. They would partner with a Service Provider and won’t have to figure out how to host on their own. The customer would get what they want, and both the ISV as well as the SP would generate value and earn money by focusing on their key abilities.

We see that partnership is a key strategy in an ecosystem. But how could you get to a partnership with other key players?

This leads us to the second important part in the ecosystem definition, it is “self-sustaining”. There is nobody on the outside to control the ecosystem – every member has to organize theirself.

How do you build your own partnerships and find the right people to connect with in our huge IT world? If you think this is a hard task to settle – yes it is. But there are different ways to address this challenge.

  1. One option would be cold calling some potential partners to connect with. As you could imagine, this will be a lot of hard work, not very promising.
  2. Start with people you have in your network, or worked with in the past. The quality of the ecosystem will depend on the quality of your network.
  3. The third possible way is to become part of an already existing partner system, for example the Hewlett Packard Partner Ready Program. Using those programs will bring you the unique opportunity to leverage an established ecosystem. This will bring you in contact with people and companies from every segment in the IT world and accelerate your ability to create an effective ecosystem due to collaboration.

If you want to provide your software in a consume model, and are looking for a way to run a datacenter, host your application, sell this application and meet local compliance and regulations, watch Shisher Wahie’s video about “challenges and opportunities for ISVs in the cloud ecosystem”.

When you are ready to see how the Hewlett Packard Enterprise Partner Ready program could help you accelerate your time to market, leverage your projects and find new partners check out the HPE Partner Ready website.

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About the Author

FlorianKampes

I am studying Business Information Systems at Hewlett Packard Enterprise Germany in the DualStudy Program. This program combines 50% high-level academic study at university with 50% practical on-the-job experience. My studies combine business knowledge with IT and technology skills like programming, database development and development of distributed systems. During my studies I worked for Hewlett Packard Enterprise in various positions. In my current internship in Palo Alto I help to run the marketing for the Evolution of the Channel.

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