The company beat revenue forecasts reaching $436M last quarter. It also previously won the 2024 Microsoft Americas Partner of the Year Award in Commercial Marketplace.

Let's break down what makes their partner-first approach so effective:

Strategic Partner Focus

Dynatrace made a deliberate pivot to align partners with strategic accounts. As CEO Rick McConnell explained:

"At the beginning of this fiscal year [April '24], we introduced go-to market changes focused on customer segmentation, partner enablement, and expanding our sales motion beyond application performance."

Cloud Modernization as Growth Engine

The company positions its partnerships around a clear market trend. As McConnell noted this week:

"Cloud modernization drives observability demand and is evidenced by the now more than $220 billion in annualized hyperscaler revenue."

Dynatrace has built strong partnerships with hyperscalers, like AWS, Azure, and Google Cloud, as well as GSIs.

The company won 2024 Microsoft Americas Partner of the Year Award in Commercial Marketplace and reported that their marketplace deals are 2X larger than direct sales.

Dynatrace aligned its partner GTM with enterprises struggling with "more than a dozen internal and external observability tools." This creates a compelling narrative for partners selling unified observability solutions.

From Influence to Active Deal Generation

The transformation in just few quarters is striking:

Q1 FY25:

"Partners influence more than 2/3 of our ARR... and the real thrust around our partner initiatives is to drive that 30% origination higher"

Q3 FY25:

"More than half of the new logos in the quarter were partner originated" and "More than three-quarter of the deals are transacted through our partner ecosystem"

Quality of Partner-Led Business

The focus isn't just on volume - it's about strategic wins. "In Q3, the dollar contribution of deals greater than $1 million grew 55% year over year" with partners playing a crucial role in these enterprise-scale opportunities.

Key Learning for Alliance Leaders:

Dynatrace didn't just add partners as a channel - they rebuilt their entire go-to-market with partners at the core. What stands out is how they transformed partners from deal influencers to primary business drivers in months.

We’ll look deeper into Dynatrace transformation much deeper in a second, but before that—I’d appreciate your quick help: