Hyperscalers Are the New Frontier for Software Growth

: From the Desk of the CEO, Marc Palombo 

Drawing on my two decades of experience helping technology companies navigate the complex landscape of sales and partnerships, I've had the unique opportunity to observe the critical factors that enable a software company to successfully scale from a few million in revenue to over $100 million. As CEO of Channel Beacon, I can confidently state that one of the most impactful, yet frequently underestimated, strategies for achieving this growth is the strategic leverage of hyperscalers such as Amazon Web Services (AWS), Google Cloud, and Microsoft Azure.

Why Hyperscalers Are the New Frontier for Software Growth

If you're a CEO or VP of Sales at a software company, you're likely thinking about how to accelerate growth, shorten sales cycles, and get in front of the right customers. You've probably heard about the massive enterprise spending happening on cloud platforms. What you might not realize is that a significant portion of that spending is now being directed through the cloud providers' marketplaces.

I like to use a simple analogy: "You're either playing in the stadium or you're just tailgating in the parking lot." The real action, the big money, and the serious buyers are inside the stadium—and that stadium is the hyperscaler marketplace!

The Unlocked Value of Hyperscaler Partnerships

Working with hyperscalers isn't just about listing your product. It's a comprehensive go-to-market strategy that can unlock new revenue streams and dramatically boost your market presence.

• Access to a Massive Customer Base: AWS Marketplace and Azure Marketplace aren't just storefronts; they are trusted procurement channels for thousands of enterprise customers who have already committed large budgets to these platforms. Listing your solution here puts you in a position to be found and purchased by companies actively looking for solutions.

• Leveraging Cloud Spend Commitments: Many large enterprises operate on "use it or lose it" cloud spend commitments with AWS or Azure. When you're listed in their marketplace, you allow customers to use their existing cloud budget to buy your software. This simplifies the procurement process and makes it a "no-brainer" for them, which can significantly shorten your sales cycle.

• Co-Selling with the Giants: This is perhaps the most powerful benefit. When your company has a strong partnership with a hyperscaler, their sales teams are incentivized to co-sell your product. Think about that: you gain the credibility and reach of a global tech giant, with their sales reps actively introducing your solution to their accounts.

• Expanded Ecosystem: Your reach isn't limited to the hyperscalers themselves. Partnerships open doors to a vast ecosystem of system integrators, managed service providers, and other partners who are highly incentivized to work with these platforms. This creates a network effect, with your solution being recommended and implemented by a broad range of trusted advisors.

How Channel Beacon and I Can Help You Win 🏆

I've spent years building and scaling these types of partnerships. At Onit, I led the global strategic alliances program, and a key focus was on our relationships with hyperscalers and system integrators. Over the course of my time there, we delivered over 800% revenue growth in partner-originated deals and saw a 40% increase in lead and opportunity conversions. This success led to my recognition as a CRN 2023 Channel Chief.

I've learned that a successful partnership with a hyperscaler requires more than just a listing; it requires a strategic roadmap. This is exactly what we do at Channel Beacon. We act as your fractional channel chief, helping you:

• Design and Build: We'll help you create a high-performance channel program, whether that's a global reseller network or a specialized hyperscaler partnership.

• Grow and Scale: We guide you through the complexities of the listing process, help you navigate the intricacies of co-selling, and connect you with the right contacts to ensure your success.

• Drive Results: We focus on creating a practical, proven roadmap that unlocks the revenue you're currently leaving on the table.

In today's competitive landscape, ignoring the hyperscalers is like deciding to stay in the parking lot while the game is being played. If you're ready to grow smarter and sell bigger, let's connect and build a winning strategy together.