What is a Hyperscaler GTM?

TL;DR

Hyperscaler GTM is how companies sell products and services using big cloud providers like AWS or Azure. It means putting your offerings in their marketplaces, selling with their sales teams, and using their wide customer reach. This is important for partners to grow their business and reach new customers through established cloud platforms.

Key Insight

Hyperscaler GTM isn't just about listing your product; it's about deeply embedding your sales and marketing motion within the hyperscaler's ecosystem. Success hinges on strategic alignment, mutual value proposition development, and continuous partner enablement to drive co-selling motions effectively.

1. Introduction

Hyperscaler Go-to-Market (GTM) represents a strategic approach where companies forge partnerships with major cloud providers, including AWS, Azure, and Google Cloud. This strategy helps bring products and services to market, ultimately expanding a company's market reach.

The process involves several key activities, including integrating offerings into cloud marketplaces and co-selling with hyperscaler sales teams. A robust partner program remains essential for success, as it supports these deeper integrations.

2. Context/Background

Growing rapidly, the cloud computing market has seen hyperscalers become dominant platforms. Businesses needed to adapt their sales strategies, seeking effective ways to reach more customers. Partnering with hyperscalers offered a compelling solution, allowing smaller companies to access vast customer bases and helping large enterprises discover new distribution channels.

Changing traditional channel sales models, this strategy moves beyond direct sales or simple reseller agreements. Instead, it focuses on deep technical and sales alignment, a shift crucial for modern software and IT firms. Manufacturing companies also adopt this model to deliver connected products or services through cloud platforms.

3. Core Principles

• Platform Alignment: Products must integrate seamlessly, working effectively within the hyperscaler's ecosystem.
• Joint Value Proposition: Both the company and the hyperscaler benefit by offering a combined solution to end customers.
• Co-Selling Focus: Sales teams from both sides collaborate, targeting shared customer needs.
• Marketplace Presence: Listing products on cloud marketplaces proves key, increasing visibility and simplifying procurement.
• Enablement for Partners: Partner enablement ensures partners understand the joint offering, allowing them to sell and support it effectively.

4. Implementation

1. Select Hyperscaler: Choose the cloud provider that best fits your product, considering their market reach and customer base.
2. Technical Integration: Adapt your product for the chosen cloud platform, ensuring it meets their technical standards.
3. Develop Joint Offerings: Create solutions combining your product with hyperscaler services, highlighting the combined value.
4. Establish Partner Program: Build a specific partner program for this strategy, defining clear roles and responsibilities.
5. Enable Sales Teams: Train your sales teams and the hyperscaler's teams, ensuring they understand the joint value proposition.
6. Launch on Marketplace: List your offering on the hyperscaler's marketplace, actively promoting it to drive awareness.

5. Best Practices vs Pitfalls

Best Practices: Invest in deep technical integration: Ensure your product works flawlessly. Prioritize joint sales planning: Align sales goals with the hyperscaler. Use Hyperscaler programs: Engage with their co-sell and marketing programs. Provide robust partner enablement: Equip your channel partner with necessary tools. Track joint metrics: Measure success collaboratively. Simplify deal registration: Make it easy for partners through tools like partner relationship management.

Pitfalls: Shallow integration: A weak technical connection limits value. Lack of dedicated resources: This strategy needs focused effort. Ignoring hyperscaler sales cycles: Understanding their sales processes is crucial. Poor partner communication: Keep partners informed and engaged. Expecting immediate results: Building momentum takes time. Neglecting marketplace optimization: Listings need regular updates.

6. Advanced Applications

1. Managed Service Provider (MSP) Integration: Offer your product as a managed service, with partners delivering it through the hyperscaler.
2. Industry-Specific Solutions: Tailor offerings for specific industries, focusing on unique customer needs.
3. Data Analytics and AI Co-innovation: Build advanced solutions, using the hyperscaler's data and AI services.
4. Global Expansion: Use the hyperscaler's global infrastructure to reach new geographic markets.
5. Consumption-Based Models: Align pricing with cloud consumption, appealing to cloud-native customers.
6. Security and Compliance Offerings: Deliver specialized security solutions, using the hyperscaler's compliance framework.

7. Ecosystem Integration

Hyperscaler GTM significantly impacts several POEM lifecycle pillars. Strategize involves meticulously choosing the right hyperscaler, while Recruit focuses on attracting relevant channel partner types. Onboard ensures partners fully understand the joint offering, and Enable provides essential sales and technical training, including access to a partner portal. Market uses through-channel marketing to promote offerings, and Sell involves co-selling with hyperscaler sales teams. Incentivize rewards partners for successful deals, and Accelerate drives continuous growth, often through joint events and campaigns.

8. Conclusion

Hyperscaler GTM is a powerful strategy, driving growth for many businesses. It effectively uses the vast reach of cloud providers, but companies must integrate deeply and align their sales efforts for optimal results.

Success requires a dedicated partner program, and effective partner enablement is also critical. Companies benefit from increased market access and gain credibility through association. This strategy defines modern channel sales.

Frequently Asked Questions

What is Hyperscaler GTM?

Hyperscaler GTM is a strategy where businesses partner with large cloud providers like AWS, Azure, or Google Cloud to sell their products and services. It involves listing offerings on their marketplaces, collaborating with their sales teams, and using their vast customer network to reach new markets effectively. This approach helps companies quickly expand their market presence and leverage established cloud infrastructures.

How does Hyperscaler GTM benefit IT companies?

IT companies benefit by listing their software on cloud marketplaces, gaining access to millions of potential customers. They can co-sell with the hyperscaler's sales force, tapping into existing client relationships. This strategy also allows them to build on the hyperscaler's global infrastructure, reducing their own operational costs and accelerating global expansion for SaaS solutions or other digital products.

Why is Hyperscaler GTM important for manufacturing businesses?

For manufacturing, Hyperscaler GTM helps them offer specialized solutions, like IoT analytics or predictive maintenance platforms, directly through cloud providers. This integrates their offerings with industrial cloud services, reaching a wider industrial customer base. It allows them to participate in joint marketing and sales efforts, enhancing credibility and market penetration in the digital transformation space.

When should a company consider a Hyperscaler GTM strategy?

Companies should consider Hyperscaler GTM when they want to rapidly scale, access new customer segments, and leverage existing cloud infrastructure. It's ideal for businesses with solutions that complement cloud services, or those looking to expand internationally without building extensive sales channels from scratch. Early-stage companies seeking credibility also find it beneficial.

Who are the main hyperscalers involved in GTM strategies?

The main hyperscalers involved in GTM strategies are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. These providers offer extensive cloud services, global infrastructure, and established marketplaces that businesses can use to distribute and sell their products and services to a broad customer base.

Which types of products are best suited for Hyperscaler GTM?

Products best suited for Hyperscaler GTM are those that are cloud-native or can be easily integrated with cloud platforms. This includes SaaS applications, data analytics tools, AI/ML solutions, cybersecurity software, and IoT platforms. For manufacturing, this often means industrial software, operational technology (OT) solutions, and digital twin platforms.

What is co-selling in the context of Hyperscaler GTM?

Co-selling means that your sales team works alongside the hyperscaler's sales team to sell your product. The hyperscaler's account managers introduce your solution to their existing clients, often as part of a larger cloud solution. This gives your company access to a much larger customer base and leverages the hyperscaler's trusted relationships.

How does Hyperscaler GTM impact partner relationship management?

Hyperscaler GTM requires robust partner relationship management because you are not just managing your own partners, but also aligning with the hyperscaler's partner ecosystem. This means ensuring your solution integrates well, your partners are trained on the hyperscaler's platforms, and there's clear communication and collaboration for joint sales and marketing efforts.

What is the role of marketplaces in Hyperscaler GTM?

Marketplaces, like AWS Marketplace or Azure Marketplace, serve as digital storefronts where businesses can list and sell their products. They simplify procurement for customers and provide a standardized way to discover and deploy solutions. For vendors, marketplaces offer a direct channel to a huge customer base and often streamline billing and deployment processes.

How can a manufacturing company integrate its IoT platform with Azure via GTM?

A manufacturing company can integrate its IoT platform by building it on Azure's infrastructure, using services like Azure IoT Hub. Then, they would list their platform on the Azure Marketplace, enabling joint sales with Microsoft's industrial cloud teams. They'd also participate in co-marketing campaigns to reach customers already using Azure for their industrial operations.

What is partner enablement in Hyperscaler GTM?

Partner enablement in Hyperscaler GTM involves providing your partners (and potentially the hyperscaler's sales teams) with the necessary training, tools, and resources to effectively sell and support your solution within the hyperscaler's ecosystem. This includes technical training, sales playbooks, marketing materials, and access to demo environments to ensure they are fully equipped.

Are there any challenges in adopting a Hyperscaler GTM strategy?

Yes, challenges include navigating the hyperscaler's complex rules and processes, potential revenue sharing agreements, and ensuring your product meets their technical and security standards. It also requires significant investment in integrating your solution and aligning your sales and marketing efforts with a much larger organization. Effective partner relationship management is key.