“Partners influence more than 2/3 of our ARR ''- stresses CEO of Dynatrace, with ARR surpassing $1.5Bn.
What's their strategy to 🎯 drive new revenue with partners, and why their “partner momentum is building”?
🏆 Record Wins in Collaboration with Partners
Dynatrace recently delivered a strong last quarter, finishing FY 2024 above the $1.5 Bn ARR milestone.
“We successfully closed numerous platform consolidation deals, contributing to a record 18 seven-figure ACV wins in the quarter” - highlighted Rick McConnell, its CEO.
Reflecting on the strong performance he adds that “15 of these 18 seven-figure deals were closed in collaboration with partners, especially GSIs and hyperscalers.”
📈 Partners and Hyperscalers Co-sell drive Net New ARR
Given this performance, it’s clear why the company made partners a top 3 pillar of their GTM strategy.
The CEO explained the opportunity:
“Partners, today, influence more than 2/3 of our ARR, but they account for only 30% of deal origination, highlighting the enormous whitespace of opportunity in this area.”
That’s why Dynatrace has added focus and simplicity to the core of their partner program.
“We are focusing our energy on our highest priority and most impactful partners. We are building a dedicated partner enablement engine to scale our priority partners.
And we are simplifying our economic model with partner-neutral compensation and a co-sale approach with hyperscalers to remove friction and drive closer collaboration” - stressed the CEO.
💰 Driving Net New Deals with Partners
The focus on partners is for deal origination, explained Rick McConnell.
“The real thrust around our partner initiatives is to drive that 30% origination higher, which is precisely what we're doing with the GSIs and the hyperscalers.”
Dynatrace relies on partners to win not only in Enterprise, which is clearly working, but also in the Mid-Market.
📊 Mid-market Partner Strategy to Grow ARR & NRR
“Relative to the net new ARR... the strategy around mid-market is really partners. We talk about that a lot. We are definitely leaned in relative to GSIs and hyperscalers, and that is really how we would expect to attack the mid-market space.” - emphasized the CEO.
McConnell explained relative strengths of hyperscalers and GSIs across segments:
“We would expect GSIs to be headed up market, if anything. You look at the nine-digit TCV Accenture deal with a large global financial institution, that's the kind of thing that we're going to see out of GSIs.
Hyperscaler engagements, we announced the partnership - GTM partnership with GCP in the past quarter as well. Those are the elements that will likely drive NRR in the mid-market.”
With hyperscalers driving such a significant portion of ARR for Dynatrace, how are you leveraging them in your GTM strategy?
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