Navigating the power-trio partnership: Strategies for hyperscalers, ISVs, and GSI/SIs

Navigating the power-trio partnership: Strategies for hyperscalers, ISVs, and GSI/SIs A few years ago, one of my ISV clients teamed up with a key implementation partner to launch an ambitious initiative called “Path to a Billion.” At the time, the ISV was generating around $400 million annually through this partner. By aligning all stakeholders—C-suite leadership, […]

Navigating the power-trio partnership: Strategies for hyperscalers, ISVs, and GSI/SIs

A few years ago, one of my ISV clients teamed up with a key implementation partner to launch an ambitious initiative called “Path to a Billion.” At the time, the ISV was generating around $400 million annually through this partner. By aligning all stakeholders—C-suite leadership, marketing, sales, distribution, and delivery—and creating compelling offers alongside sales incentives, the 12-month program exceeded expectations. The result? Annual sales through this partner more than doubled, achieving remarkable growth.

With more than 40 years of experience working at the intersection of hyperscalers, Independent Software Vendors (ISVs), and the broad spectrum of system integrators one thing remains clear: success in this ecosystem is as much about collaboration as it is about execution. Each player brings unparalleled value to the table, but harmonizing their efforts to create executable sales motions that meet the requirements of all stakeholders is no small feat. 

The challenge lies in understanding the distinct strengths, needs, and constraints of each group and crafting programs that align incentives, highlight mutual benefits, and drive measurable outcomes. 

In this blog post, we explore strategies for aligning hyperscalers, ISVs, SIs/GSIs, and distributors to build successful sales motions. You’ll learn about the unique roles each player brings to the ecosystem, the challenges they face, and actionable insights to drive collaboration, unlock growth, and deliver measurable outcomes.

Understanding the players in the ecosystem

Hyperscalers: the backbone of innovation

Hyperscalers, such as Microsoft, AWS, and Google Cloud, provide incredible technology platforms and marketplaces that fuel innovation at scale. Their ability to deliver transformative infrastructure is unmatched, but their success often depends on the ISVs and partners that build and implement real-world solutions for customers.  

ISVs: the amplifiers of value

ISVs bring specialized solutions that add significant value to hyperscaler platforms. Many sell directly through hyperscaler marketplaces, extending the reach and adoption of their innovations. However, while ISVs can deliver exceptional tools, they, along with their hyperscaler partners, rely heavily on implementation partners to ensure those tools translate into tangible customer outcomes. 

SI/GSI and boutique partners: the execution engines

System integrators and boutique partners (in many cases cooperating with distributors) are the critical link to execution. These partners have deep customer relationships, industry-specific domain expertise, and the ability to deliver projects at scale. Yet, their diversity—ranging from global GSIs with complex structures to nimble boutique SIs—poses unique challenges: 

    1. Global GSIs: These organizations offer vast business knowledge, particularly in industry verticals, and can deliver enterprise-grade solutions worldwide. However, their regional P&Ls, layered partnerships, and lengthy planning cycles make them challenging to align with hyperscaler and ISV go-to-market strategies. Success requires careful coordination, creative layering into established motions, and alignment with internal scorecards. 
    2. Regional SIs: These partners often boast sophisticated marketing motions planned well in advance. Layering into their campaigns requires precision, as their focus tends to favor proven, repeatable success. However, similar to Global GSIs, leaning in and aligning with their scorecards means adoption is more likely. 
    3. Boutique SIs: Known for their agility and specialized expertise, boutique partners excel in delivering tailored solutions. However, they often lack robust marketing infrastructures and need support to create full end-to-end programs that highlight the value of hyperscaler and ISV technologies. 

Distributors: the connectors driving scale and reach

Adding distributors into the mix brings another powerful dimension to the hyperscaler and ISV ecosystem. Distributors serve as invaluable connectors, opening the door to a vast network of thousands of smaller implementation partners. These smaller partners often rely on distributors for critical support in areas such as technology enablement, sales training, acquisition strategies, and access to additional resources.

Distributors play a pivotal role in scaling the reach of hyperscalers and ISVs, helping smaller partners navigate complex technologies and develop go-to-market strategies that drive customer success. Including distributors in channel strategy broadens the ecosystem, enabling more implementation partners to feature your solutions and amplify your impact in the market.

The challenge of staying top of mind

One of the most significant hurdles in this ecosystem is ensuring that hyperscalers and ISVs remain top of mind with their SI/GSI and boutique partners. Why? Because these implementation partners frequently serve multiple technology vendors who are all vying for their attention.  

The key lies in delivering creative, unique value that ensures your technology is the solution they recommend to their clients. This means going beyond traditional sales enablement. It requires tailored programs that align with the partner’s business objectives, reward their efforts, and make your offering easy to sell and implement. 

Driving execution with proven strategies

At Mercer-MacKay, we’ve spent decades honing our approach to address these challenges. We understand the nuances of this power-trio partnership and have developed strategies that work: 

    1. Aligning incentives: Programs must be designed to meet the unique goals of hyperscalers, ISVs, and SIs. This includes aligning partner scorecards, integrating into existing marketing motions, and providing compelling co-selling opportunities. 
    2. Supporting boutique partners: By delivering turnkey marketing and enablement support, we help boutique SIs position themselves as trusted advisors while elevating the hyperscaler and ISV technologies they represent. 
    3. Layering into GSI campaigns: Success with GSIs requires patience, precision, and a deep understanding of their business structures. Our strategies focus on aligning with their planning cycles and demonstrating how hyperscaler and ISV technologies can drive value within their established frameworks. 
    4. Fostering collaboration: We act as a bridge between hyperscalers, ISVs, and partners, ensuring all stakeholders work toward shared goals. This collaborative approach has consistently delivered measurable results for our clients. 

The bottom line

When hyperscalers and ISVs successfully activate their delivery channels, they unlock the potential to increase sales efforts by factor of ten or more. But success requires more than great technology—it demands alignment, creativity, and execution. 

At Mercer-MacKay, we’ve made it our mission to help stakeholders in this ecosystem achieve their goals. Our proven strategies and programs help hyperscalers, ISVs, and their partners tackle challenges and achieve outstanding results together.

If you’re ready to unlock the full potential of your channel ecosystem, let’s connect. Together, we can build a sales motion that works—for everyone.