In my previous article, I discussed types of partnerships to drive a cybersecurity technology ("CyberTech") company's partner ecosystem. This article double-clicks on the Global Systems Integrator (GSI) partner, how to decide if it's worth it, and how to build one.
It's easy for a CyberTech to be seduced by the potential benefits of partnership with a GSI. Some obvious potential benefits include:
- Scale: Expand market reach, pipeline and revenues through access to the GSI's customer base
- Cost: Reduce cost of sales by the GSI frontending much of it
- Maturity: Mature the product offering through feedback/assistance by the GSI and its customers
- Capability: Expand capability to implement and support the CyberTech products
- Brand: Improve CyberTech brand by association with the GSI
However, a CyberTech should think long and hard about whether it really should partner with a Global Systems Integrator (GSI) or not, and which one. I have seen numerous attempts consume tons of time and resources, only to fizzle out. A CyberTech should carefully consider questions like these before proceeding, and look for reasons not to proceed:
- Compelling Reason: What is the compelling reason for the GSI? Will this drive substantial services revenue or fill a gap in an existing solution, making it more compelling to customers?
- Industry/Geo Focus: Is there a clear industry/geographic focus on where the solution would first be sold? Does that align with the location of the GSI competency center and key execs?
- Customers: Are there customers already identified who would buy more from the GSI if the CyberTech products were included?
- Ownership: Is there executive sponsorship and ground-level commitment from the GSI practice that "owns" the solution? Are they "betting" on this? Will they champion it with their field teams?
- Competition: How stiff is the competition for the GSI's solution into which the CyberTech products are being integrated? How unique is the GSI's partnership with the CyberTech, or is it similar to other vendor partnerships?
Once a CyberTech has established a good potential fit with a Global Systems Integrator (GSI) partner, then comes the hard work of building the partnership. Considering the investment usually required, and likely revenue expectations, this gets designated as a strategic alliance (or GSI Alliance).
Strategy on a Page
Over the years, I've had great success growing GSI Alliances with a "strategy on a page." This literally encapsulates the strategic pillars, initiatives and metrics on a single page, that can be used to communicate with all stakeholders and manage expectations.
In the image above, you see seven pillars. Here's a brief explanation of each.
1. Partnership Foundation
Includes upfront elements to validate that the partnership is viable, such as goals, executive sponsorship, stakeholder map, and commercial model. Also ongoing governance, such as Exec Reviews (every 3-12 months) and operational reviews (1-2 times/month). And operational support for the other pillars.
2. Solution Development
Roughly how the CyberTech product(s) fit into the GSI solutions should be decided as part of the agreement to partner. Then as the partnership moves forward, complete integration and continue to evolve as the solution goes through life cycles.
3. Competency Development
This can be a chicken and egg scenario. Even with an integrated solution, many GSIs will be reluctant to sell it until there is confidence that it can be implemented and supported. But you don't want to invest too much in competency until you have evidence that customers will buy. Early wins are key.
4. Awareness/Demand Generation
Ideally, the partnership is seeded with a sales pitch that has been tested with a few key customers to validate they will buy it. As the partnership evolves, building awareness and demand among the GSI field sales team becomes crucial. If they believe in it, then they'll take care of the last mile. Demand gen campaigns can sometimes target end customers, but GSI sellers are often protective of what messages go to which customer contacts.
5. Sales Execution
If the CyberTech products are truly embedded (invisible or white-labeled) in the GSI solution, then the GSI field sellers will take care of winning the deals. But oftentimes, the products are branded components and a CyberTech Solution Engineer (SE) has to be part of the sales motion, to support the GSI team and build confidence with the end customer.
6. Delivery
Once the solution is sold, it has to be implemented and managed. This may be the responsibility of the GSI, or the CyberTech may be integral, depending on how the solution is structured.
7. Support
Similarly, customer support may be completely handled by the GSI, or the CyberTech may handle this directly.
Commercial Models
Note that a CyberTech-GSI Alliance can choose from several different commercial models. This is an essential element of deciding to form the partnership in the first place.
- Influence (or Sell-With): The GSI will influence their customers to buy the CyberTech products as part of a larger GSI solution, but the sale will actually go from the CyberTech directly to the end customer.
- Resell (or Sell-Thru): The GSI will resell the CyberTech products as part of the larger solution.
- OEM (or Sell-To): The GSI will purchase product from the CyberTech at an agreed transfer price, which will be sold as an embedded component of a GSI larger solution.
Phased Approach
Of course, you can't execute all seven pillars of the strategy at once. The Alliance should develop a phased approach (similar phases to winning a big customer):
- Land: Get the minimal building blocks in place and secure early customer wins to prove customers will buy it and the alliance can deliver it.
- Expand: Fill in the next level of structure around solution design/delivery, sales enablement, demand generation and sales execution.
- Scale: Continue to build out each pillar into a well-oiled machine.
Best Known Global Systems Integrators (GSIs)
EU/US-Based: Accenture Security, Capgemini Cybersecurity, Deloitte Consulting, DXC Technology, IBM, KPMG, PwC
India-Based: Cognizant, HCLTech, Infosys, Tata Consultancy Services, Tech Mahindra, Wipro
Selected References
- LinkedIn Article: Partnerships Increasingly Important for Cybersecurity Technology Providers to Fuel Go-To-Market Success, by Erik Britt-Webb
- LinkedIn Article: How to Partner with Global System Integrators (GSIs), by Mike Nevin
- LinkedIn Article: Partnering & winning with Global Systems Integrators, by Sid Khare
- LinkedIn Article: Strategic Alliances - Part 3: The Mistakes: Working with S.I. Client Partners/ Managing Directors, by Subhashish Acharya
- LinkedIn Post: Winning in the XaaS Market by Establishing the GSI Partnership, by Newsha Mirzaie
- Medium Article: Partnering and Selling with a Global Systems Integrator, by Wipro Ventures
- Company Blog: Build a Successful GSI Alliance Program in 5 Steps, by TBR Insight Center
- Company Paper: GSI Playbook, by GoPronto