Partner programs are the cornerstone for structuring and nurturing relationships between ISVs and cloud providers, laying the groundwork for collaborative endeavors that drive mutual success. By participating in these programs, ISVs gain access to a plethora of resources, tools, and support mechanisms provided by cloud vendors, empowering them to scale their operations and reach new heights of innovation.
In this guide, we’ll explore the world of partner programs, from the foundational membership in partner networks to the diverse array of program categories and paths available to ISVs.
Partner Networks
Partner networks are vital ecosystems established by industry leaders like Amazon and Microsoft, bringing together ISVs, system integrators, and consultants to drive innovation and growth in the cloud space. Examples include the AWS Partner Network (APN) and the Microsoft AI Cloud Partner Program (MPN).
These networks offer ISVs a platform to access resources, expertise, and support from cloud vendors to enhance their products and services. Through participation, ISVs gain tools, incentives, and opportunities tailored for success in the cloud marketplace.
Within partner networks, ISVs receive access to programs, benefits, and tools such as:
Cloud Marketplaces: Platforms like AWS Marketplace or Azure Marketplace (plus Microsoft AppSource) where customers can discover, purchase, and deploy software solutions offered by third-party vendors.
Compensation Programs: These programs incentivize cloud representatives to sell ISV solutions by offering direct-to-pocket payments for closing deals, such as ISV Accelerate or IP Co-Sell.
Cloud Funds: Funding benefits available to ISVs participating in specific programs within partner networks to support activities like building, marketing, and selling with the cloud provider.
Partner Paths
Selecting the right partner path is essential for ISVs entering a partner network, enabling them to align their goals with the offerings of cloud providers. Partner paths serve as guiding principles, streamlining ISVs’ engagement and optimizing their access to resources for growth and innovation.
Partner paths are similar across Amazon and Microsoft. For reference, AWS’s partner paths include:
Software path: For organizations that develop software that runs on or is integrated with AWS, Most ISVs, start-ups belong to this category.
Hardware path: For organizations that develop hardware devices that work with AWS
Services path: For organizations that deliver consulting, professional, managed, and value-added resale services
Training path: For organizations that sell, deliver, or incorporate AWS training
Distribution path: For organizations that recruit, onboard, and support their partners to resell and develop AWS solutions
Partner paths offer ISVs a roadmap to navigate the network, fostering collaboration and leveraging cloud provider resources. By choosing the appropriate path, ISVs align their objectives with strategic priorities, maximizing their potential in the dynamic cloud computing landscape.
Partner Program Categories
Within partner networks, various types of partner programs exist, each offering unique benefits and opportunities for ISVs to engage with cloud providers and enhance their presence in the marketplace. These programs are structured to cater to different aspects of ISV partnership, ranging from recognition and differentiation to financial incentives and technical support.
Tier Programs
Tier programs classify ISVs based on their level of engagement and achievement within the partner network. These programs typically include tiers such as Confirmed, Validated and Differentiated for AWS Software partners, with each tier offering progressively greater benefits and privileges. The purpose of tier programs is to recognize and reward ISVs for their commitment and contributions to the partner ecosystem. For example, achieving Differentiated Software partner status may grant access to exclusive resources, dedicated support, and co-marketing funds and opportunities.
Compensation Programs
Compensation programs are designed to provide monetary incentives for ISVs, cloud sellers, and end customers to promote and sell partner solutions. One prominent example of a compensation program is the ISV Accelerate program, which incentivizes AWS sellers with direct-to-pocket payments from Amazon itself for closing deals with ISV partners. The goal of compensation programs is to drive sales and revenue growth for both ISVs and cloud providers while rewarding successful partnerships.
While not directly targeted at ISVs, cloud commitment programs such as the Enterprise Discount Program (EDP or PPA) and Microsoft Azure Consumption Commitment (MACC) enable customers to receive discounts on cloud services based on their commitment levels. By making a commitment to specific amounts of cloud spend over time, customers can lock in discounts and optimize their cloud investments. While EDP/MACC is primarily aimed at customers, ISV that are listed on the Marketplaces with the right program status will be able to access customers’ cloud commitment budgets for getting paid through the cloud vendor. This allows faster deal closing with larger average deal sizes.
Differentiation Programs
Differentiation (or Specialization) programs focus on highlighting the unique strengths and capabilities of ISVs within specific domains, verticals, or use cases. These programs, such as Competency and Service Ready programs in AWS, aim to showcase ISVs as leaders in their respective fields and provide recognition for their expertise and innovation. By participating in differentiation programs, ISVs can enhance their visibility, credibility, and market position, attracting customers and partners alike, improving the co-sell conversion rates.
Promotion Programs
Promotion programs are geared towards accelerating the growth and visibility of ISVs in various domains or themes, based on specific parameters set by the cloud provider. An example of a promotion program is the Global Startup program in AWS, which offers tailored resources and support for startups to scale their businesses on the cloud platform. Promotion programs help ISVs reach new audiences, enter new markets, and capitalize on emerging trends and opportunities.
Integration Programs
Integration programs focus on the seamless integration of ISV products or solutions with cloud services or offerings provided by the cloud provider. While not traditional “programs” in the same sense as the other categories, integration initiatives are essential for ISVs to ensure interoperability, compatibility, and functionality with the underlying cloud infrastructure. Examples include integration with services like Microsoft Sentinel or Amazon Security Lake, enabling ISVs to enhance the security and performance of their solutions on the cloud platform. Additional funding programs are available to sponsor these joint features.
Partner Portals
Partner portals serve as central hubs for ISVs to engage with cloud providers and access the resources, tools, and support necessary to succeed within partner networks. These online platforms play a pivotal role in streamlining the registration process for ISVs looking to join partner networks and participate in partnership programs offered by cloud providers.
Through partner portals, ISVs can navigate the registration process, submit applications, and gain access to a wealth of resources and benefits tailored to support their journey in the cloud marketplace. Partner portals also provide ISVs with visibility into available programs, initiatives, and incentives, empowering them to make informed decisions and maximize their opportunities for growth and success.
AWS: APN portal with ACE for co-sell pipeline management,
AWS Marketplace Seller portal for transactions
Microsoft: Microsoft Partner Center for co-sell and Marketplace
Embrace Partner Programs for Growth
We encourage ISVs to explore and leverage partner programs as catalysts for growth and success in the cloud ecosystem. By actively engaging with partner networks, ISVs can unlock a myriad of opportunities, from access to resources and support to collaboration with industry leaders and accelerated go-to-market strategies.