What Are the Different Types of Partnerships? EXPLAINED

 

 
Everyone knows it but in the partnership industry; there is still a lot of confusion but I came across the book of Bob Moore; Ecosystem-Led Growth: A Blueprint for Sales and Marketing Success Using the Power of Partnerships, where he explains it so beautifuly that I decided to copy it 1-1 and share it here as well.
 

 

Basically; you can split all partnerships into 3 categories +1.
 
 
Tech partnerships
 
 
 
Channel Partnerships
 
 
 
Strategic Partnerships, aka Strategic Alliances
 
 
 
(Optional: Marketplace but as I feel this is a category on it’s own; I won’t talk about it here.)
 
 
 

1. Tech Partnerships

 
Tech partnerships Broadly speaking, if a partnership involves your tech product integrating with your partner’s tech product, you have a technology (or simply tech) partnership on your hands. This is also referred to as an integration partnership, or simply a tech integration.
 
 
 
The below Tech Partnerships; you can consider 3 subcategories:
 
 
 
 
 
Tech Partnerships
 
 
 
 
 
 
 
 
 
 
 
Subcategory
 
Tech(nology) Partnership
 
Independent software vendor (ISV)
 
OEM Partnership
 
 
 
 
With this tech partnership in place, shared customers of Alexa and Spotify become more loyal to both products. Once the integration is activated by the end user, the products have made each other more deeply entrenched in the end user’s experience.
 
Most tech partnerships, can also be referred to as ISV in partnerships. This moniker applies in cases where the two companies are distinct entities that each have their own customer relationships, and they bring elevated value to their joint customers via their tech integrations.
 
OEM partnerships come into play when one product creator fully and often opaquely embeds another company’s product within its own. That other company is the “original manufacturer” of the “equipment” being embedded.
 
 
 
 
 
 
 
 
 
Tech Partnership Examples
 
 
Description
 
 
Tech(nology) Partnership: Amazon Alexa & Spotify
 
The ability to use a simple voice command to listen to Spotify on any Amazon Alexa device increases the value of both Spotify and Alexa, to the mutual benefit of their shared customers. With this tech partnership in place, shared customers of Alexa and Spotify become more loyal to both products. Once the integration is activated by the end user, the products have made each other more deeply entrenched in the end user’s experience. Among other things, this makes them each more painful to remove—a trait that some product managers call “stickiness.” Moving away from Alexa would cut down on the devices and locations in which Spotify can be streamed. Moving away from Spotify would diminish the value of having an Alexa device in every room. The partnership seeds a symbiotic relationship between these products—they are a part of each other’s value stories.
 
 
ISV Partnership DocuSign & Salesforce
 
DocuSign is an ISV partner of Salesforce, with which they developed an integration to enable companies of all sizes and across industries to “go paperless” and sync their document management processes with their Salesforce customer relationship management (CRM) data. Salesforce customers can benefit from unifying their contracts and other documentation with their CRM data—thus, making Salesforce a more complete solution for their business needs. Meanwhile, DocuSign benefits by gaining access to Salesforce’s 150,000+ customer base from directly inside the Salesforce user interface.
 
 
OEM Partnership Intel x DELL
 
A traditional example might be the use of Intel chips in Dell PCs… Intel… are effectively making a sale every time Dell… makes a sale—they just don’t share the branding glory.
 
 
 
 
 
 

2. Channel Partnerships

 
📒
Your channel partners include any and all outside companies that assist you in marketing, selling, or delivering your products or services to your customers.
 
 
They are quite literally a “channel” through which your product gets sold or delivered.
 
 
Value-Added Resellers (VARs): “VARs purchase software or hardware products from manufacturers and then sell them to their customers, often bundled with additional services such as installation, configuration, and customization”.
 
 
 
Distributors: “Distributors typically do not sell directly to end users. Instead, they sit in the middle between manufacturers and other resellers or retailers who interface with the end consumer of the product”.
 
 
 
 
 
 
Channel Partnership Subtype
 
 
Description
 
 
Reseller
 
Reseller partner is a company or individual that purchases a product or service from the original manufacturer or service provider and then sells it to their customers, often with added value or services. Resellers play a crucial role in
 
 
Value-Added Resellers (VARs)
 
Value-added resellers (VARs) are companies that purchase software or hardware products from manufacturers and then sell them to their customers, often bundled with additional services such as installation, configuration, and customization.
 
 
Distributors
 
Distributors are a special kind of reseller that typically do not sell directly to end users. Instead, they sit in the middle between manufacturers and other resellers or retailers who interface with the end consumer of the product. Ingram
 
 
2. Managed Service Provider (MSPs)
 
Managed service providers (MSPs) are companies or organizations that specialize in overseeing and managing specific operational processes or functions on behalf of other businesses. In tech, they are commonly associated with IT services, such as network management, security etc
 
 
2. System Integrator (SIs)
 
Global system integrators (GSIs) are large, multinational companies that operate across multiple industries and geographies. Regional system integrators (RSIs), on the other hand, are smaller companies that operate within specific geographic areas or industries. These SIs offer tailored solutions and services to local customers, leveraging their regional expertise and knowledge.
 
 
 
 
 
 
 
Channel Partnership Sub-Type
 
 
E.g
 
 
Example
 
 
Reseller
 
Adobe; Microsoft x CDW
 
One notable example of a software reseller is CDW, a Fortune 500 company that offers information technology (IT) solutions to businesses, governments, and educational institutions. CDW partners with leading technology companies such as Microsoft, Adobe, and Cisco to resell their software and hardware products.
 
 
Value-Added Resellers (VARs)
 
Adobe, Dell x Shi
 
Value-added resellers (VARs) are companies that purchase software or hardware products from manufacturers and then sell them to their customers, often bundled with additional services such as installation, configuration, and customization. VARs add value to the original product by tailoring it to the specific needs of their customers, which differentiates them from traditional resellers. A notable example of a VAR is SHI International, a global IT solutions provider that partners with major technology vendors such as Microsoft, Adobe, and Dell. In 2021, SHI International reported annual revenue of over $12.3 billion.
 
 
Distributors
 
Manufacturer x INGRAM x Manufacturer
 
Distributors are a special kind of reseller that typically do not sell directly to end users. Instead, they sit in the middle between manufacturers and other resellers or retailers who interface with the end consumer of the product. Ingram Micro is a well-known distributor whose business model is largely based on acting as an intermediary between manufacturers and resellers of technology products. In doing so, Ingram Micro helps manufacturers reach a broader audience while providing resellers with a wide range of products and logistical support. (Confusingly, Ingram Micro and many of its distributor ilk also offer value-added services and are sometimes labeled as a VAR. In case you haven’t noticed yet, these channel partnership distinctions get quite blurry and are rarely mutually exclusive.)
 
 
2. Managed Service Provider (MSPs)
 
Cyberduo x Companies
 
Managed service providers (MSPs) are companies or organizations that specialize in overseeing and managing specific operational processes or functions on behalf of other businesses. In tech, they are commonly associated with IT services, such as network management, security, and technical support. But MSPs exist in more traditional industries too, from facilities management to accounting outsourcing to health care management.
 
 
2. System Integrator (SIs)
 
Accenture, Deloitte etc
 
These are companies that specialize in integrating diverse IT systems, software applications, and hardware components into a cohesive and functional whole. SIs help organizations streamline their IT infrastructure and ensure seamless interoperability between different systems. There are two types of SIs: global system integrators (GSIs) and regional system integrators (RSIs). Global system integrators (GSIs) are large, multinational companies that operate across multiple industries and geographies. Examples of GSIs include Accenture, Deloitte, and IBM Global Services—and they’re all behemoths. In 2020, Accenture alone reported annual revenue of over $44 billion. Regional system integrators (RSIs), on the other hand, are smaller companies that operate within specific geographic areas or industries. These SIs offer tailored solutions and services to local customers, leveraging their regional expertise and knowledge.
 
 
 
 
 
 

3. Strategic Partnerships

 
📒
Strategic partnerships, also known as strategic alliances, are the big eye-catchers in partnerships. They can encompass any of the partnership types mentioned earlier but do so with long-term, big-picture planning and intention.Strategic partnerships often involve a higher level of commitment and trustThey are quite literally a “channel” through which your product gets sold or delivered.
 
 
🚧
N.b Strategic Partnerships/Alliances: Buyer beware, however—a “strategic” partnership can also be a clever way to grab headlines or send a message to the market long before actually doing any of the work that makes it valuable.
 
 
 
 
 
 
 
ALL below can be a tech ; channel + the following resources added
 
 
Subcategory
 
 
 
 
Joint Product Development
 
Strategic partners often collaborate on developing new products or enhancing existing ones, creating unique offerings that can differentiate them in the market.
 
 
Co-Marketing Initiatives
 
Strategic partnerships can involve joint marketing efforts to reach a broader audience or target specific market segments.
 
 
Shared Ressources & Expertise
 
Strategic partners can pool resources and expertise to tackle complex business challenges or address new opportunities.
 
 
Market Expansion
 
Strategic partnerships can help companies enter new markets or expand their presence in existing ones.
 
 
Industry Alliances
 
Strategic partnerships can also take the form of industry alliances that involve multiple players all committing to the same strategic direction and vision.
 
 
 
 
 
 
 
Subcategory
 
 
E.g
 
 
ALL below can be a tech ; channel + the following resources added
 
 
Joint Product Development
 
Adobe marketing Cloud x Microsoft Dynamics 365
 
Strategic partners often collaborate on developing new products or enhancing existing ones, creating unique offerings that can differentiate them in the market. In 2017, Adobe and Microsoft announced a strategic partnership to integrate Adobe’s marketing cloud with Microsoft’s Dynamics 365 CRM platform. This collaboration allowed both companies to deliver a comprehensive marketing and sales solution, enabling their customers to better manage customer relationships and drive business growth.
 
 
Co-Marketing Initiatives
 
Saleforce CRM x Apple IoS
 
Co-marketing initiatives: Strategic partnerships can involve joint marketing efforts to reach a broader audience or target specific market segments. In 2018, Salesforce and Apple announced a strategic partnership to bring together the power of Salesforce’s CRM platform with iOS, Apple’s mobile operating system. This collaboration resulted in a series of co-marketing initiatives, including the development of an SDK (software development kit) for iOS, enabling developers to build native Salesforce apps for iPhone and iPad devices. This partnership allowed both companies to expand their reach and strengthen their positions in their respective markets.
 
 
Shared Ressources & Expertise
 
Google x VmWare
 
Strategic partners can pool resources and expertise to tackle complex business challenges or address new opportunities. In 2019, Google Cloud and VMware announced a strategic partnership aimed at helping organizations accelerate their digital transformation journeys. As part of this collaboration, VMware’s virtualization and cloud infrastructure solutions were integrated with Google Cloud’s platform, enabling customers to leverage both companies’ expertise in cloud computing and data center management.
 
 
Market Expansion
 
Slack x Atlanssian
 
Strategic partnerships can help companies enter new markets or expand their presence in existing ones. In 2021, Slack and Atlassian announced a strategic partnership aimed at deepening their integration and expanding their reach in the enterprise collaboration market. As part of this partnership, Atlassian’s popular team collaboration tools, such as Jira and Trello, were integrated with Slack’s communication platform, allowing users to seamlessly collaborate across both platforms. This partnership enabled both companies to offer a more comprehensive solution for team collaboration and expand their market presence.
 
 
Industry Alliances
 
MACH
 
Strategic partnerships can help companies enter new markets or expand their presence in existing ones. In 2021, Slack and Atlassian announced a strategic partnership aimed at deepening their integration and expanding their reach in the enterprise collaboration market. As part of this partnership, Atlassian’s popular team collaboration tools, such as Jira and Trello, were integrated with Slack’s communication platform, allowing users to seamlessly collaborate across both platforms. This partnership enabled both companies to offer a more comprehensive solution for team collaboration and expand their market presence.
 
 
 
 
 
 
 
 
These categories of partnerships—tech, channel, and strategic—are key to unlocking new growth opportunities. By carefully selecting and nurturing these alliances, companies can leverage combined strengths to deliver unparalleled value to their customers and stay ahead in the market.
 
 
 
Download the partnership Flyer here

Other describe different type of partnerships in different ways, such as Peter Simoons from his Alliance Accelerator blog; https://www.petersimoons.com/alliance-blog/

Or Hubspot; who published this graph in their partner and ops program in https://offers.hubspot.com/state-of-partner-ops-and-programs-2022 

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