Partner-Based Innovation Models

AI is rewriting playbooks, turning partnerships into the 🎯 cornerstone of business strategy. When Microsoft partners with OpenAI while competing with them, and Amazon doubles down on Google-backed Anthropic, you know the rules have changed. When a single model like last year's Gemini Ultra costs $190M just to develop, even tech giants with deep pockets can't put all pieces of the puzzle together alone. Just think about all the layers of the stack, product use cases, and distribution channels. "Cross-ecosystem collaboration is critical to mobilizing the investment and capabilities that different ecosystem participants require to innovate and facilitate broader adoption of gen AI," a recent Accenture analysis reveals. The telling proof? A striking 65% of $32Bn invested in foundation models (2019 - mid 2024) is partnership-led. But it's not just about training LLMs or building data centers. Partnerships are critical across all six layers of the AI Stack. 📊 AI Stack's Key Dependencies (examples): Applications Layer needs: Foundation model integration Application-specific data Distribution channels to reach users Tooling Layer (model hubs, data orchestration) needs: AI frameworks and code libraries Synthetic data generation Foundation Model Layer need: Massive compute resources Large-scale training datasets Distribution channels Data & Storage Layer needs: High-quality structured/structured datasets Scalable infrastructure and Interoperability Cloud & Networking Layer needs: High bandwidth networking Customer relationships (distribution) Chips Layer needs: Compute for chip design Supplier and Customer relationships 💡 4 Key Partnership Types Emerging in the Ecosystem: Chips + Cloud Chip makers gain cloud integration expertise and broader market reach Cloud providers get access to high-performance AI chips Clouds + Foundation Models Cloud providers gain cutting-edge foundation models (eg. GPT) Model developers get infrastructure for broader deployment and scaling Data/Storage + Foundation Models Data companies expand market reach by supporting AI workloads Model developers get access to scalable data and storage solutions Foundation Models + Applications Model developers reach new markets through AI-driven applications App developers get Foundation model integration capabilities 💎 What makes AI #partnerships unique is how they've created incredible incentives for deep collaboration. Unlike previous tech waves where companies could succeed by controlling key parts of the stack, AI's complexity and resource demands force even the largest players to seek complementary capabilities. Tech companies are aggressively pursuing multiple parallel alliances rather than (while?) trying to fully vertically integrate. It's about creating an #ecosystem where innovation happens through collaboration and co-competition. What's your take? ✔️ Follow for more insights & check my newsletter on Cloud GTM https://lnkd.in/er4haEq2 Partner Insight

As I meet more people, especially budding tech founders, a recurring question is about leveraging partnerships as a revenue channel. One key aspect that often stands out in these discussions is identifying the right partner. The right partnership can provide up to 80% leverage in your ROI by aligning perfectly with your goals and capabilities. Consider the example of a health tech startup partnering with a large hospital chain. By integrating their cutting-edge telemedicine platform with the hospital's extensive network, the startup was able to provide virtual health services to a vast number of patients. This partnership enabled the startup to scale rapidly and gain credibility in the healthcare market, while the hospital chain could offer innovative services to their patients without developing the technology in-house. To help identify the right partner, I recommend using a simple framework like the "PARTNER" scoring model: - 'P'urpose Alignment: Do your missions and goals align? - 'A'ccess to Market: Can they help you reach new or larger markets? - 'R'esource Complementarity: Do they offer resources you lack and vice versa? - 'T'rust and Reliability: Can you trust them to deliver consistently? - 'N'etwork Synergy: Do their connections and networks benefit you? - 'E'conomic Benefit: Is the partnership financially advantageous? - 'R'eputation: Does partnering with them enhance your brand image? By scoring potential partners on these criteria, you can identify the one that offers the best strategic fit and highest potential for ROI. #B2BPartnerships #TechFounders #BusinessGrowth #StrategicAlliances image - courtesy to Freepik

A 'quick' customer call on Friday revealed something fascinating about their Value Added Reseller (VAR) business. Less than 18 hours later, I drove 4 hours to Dallas through the rain. Because when you sense a partnership that could reshape both businesses, you don't wait for Monday! As I reflected during the drive, I couldn't help but think about how tech partnerships have evolved. While running partner programs at Zoho I saw firsthand how partnerships weren't just a channel – they were the foundation of growth. The tech giants understood this decades ago: Microsoft, Salesforce, Oracle, SAP, Cisco, Citrix , IBM, Amazon Web Services (AWS), Atlassian, AppDynamics, HubSpot – they all built partner-first empires. But 2024 showed us something revolutionary happening in the partnership space. Through customer (agencies/partners) conversations at Layerpath, I'm seeing three massive shifts: 1. The Rise of Partner-Led Innovation ↳ Service providers aren't just implementing anymore – they're becoming product innovators ↳ Small agencies are building sophisticated, AI-powered platforms ↳ Traditional consulting firms are transforming into software companies ↳ Solo practitioners are scaling to enterprise-level operations 2. The Democratization of Partnerships ↳ AI is lowering the barrier to software development ↳ Partners are building proprietary solutions on top of platforms ↳ White-labeled, automated workflows are replacing manual services ↳ The line between service provider and software vendor is disappearing 3. The Power Dynamic Shift ↳ Partners are closer to customer problems than big-tech ↳ They understand industry-specific workflows deeply ↳ They can move faster and adapt quicker ↳ They're building moats through specialized knowledge + technology Most founders miss this: While everyone's debating AI agents and the "death of SaaS," they overlook a fundamental truth—partnerships are being reimagined. Your biggest threat isn't the incumbents or the next AI startup. The thousands of partners could build competing solutions if you don't enable them first. The next wave of successful startups won't just build better software – they'll build better partnership ecosystems. They'll understand that in 2025: - Partners can be product innovators, not just implementers - Small companies can build powerful partnership programs - Technology + domain expertise + distribution is the winning formula After today's meeting, I'm more convinced than ever: the future belongs to companies that understand this partnership transformation. For founders building in 2025: How are you thinking about partnerships? Are they just a distribution channel, or could they be the core of your strategy? Let's discuss. P.S. Sometimes, the best strategies come from real conversations, not board rooms.

I have built and scaled data teams several times in my career at company's of all sizes and have found that teams focusing on a partnership based approach (vs. a support based approach) are by far the better way to go . With a partner model you can attract strong talent, drive data driven decision making and be directly effective in delivering business results. Support teams typically react to requests, focusing on fulfilling specific tasks or providing analyses as needed. In contrast, partnership-based teams are proactively involved in shaping strategy, identifying opportunities, and driving business outcomes alongside other departments. How can you tell if a team is a partnership based on or a support model based one ? Its the LANGUAGE they use - Support teams tend to use more service-oriented terminology, while partnership teams use language that emphasizes collaboration and shared responsibility. Support Team Talk: "Intake process" "Requirements gathering" "Ticket system" "Stakeholders" Partner team Talk: "Big Rock Priorities and OKRs" "Joint Ownership" "Workstream POC" "Team / Project Roadmap " "Partners" Which sounds more like your team? 🤔

Mental models are useful for managing partner ecosystems, especially in the current VUCA (volatile, uncertain, complex, and ambiguous) environment. The traditional mental model of the partner program is a Pyramid, which was effective in the past when top-down hierarchies were the best way to deliver efficient, predictable, and controllable outcomes. However, this model is no longer effective. A new mental model is needed because everything in the world is becoming more dynamic, relational, and ecosystematic. A new mental model for partnering is a Network, where hierarchy gives way to interconnections and control gives way to relationships. When this network mental model is combined with tech platforms and platform business structures, the best-performing partner ecosystems are created. The implications of this shift on how we think about the partner business are profound, including programs with more carrots and fewer sticks, processes that cater to very low floors, partner plans that are linked to corporate strategy and commercial models, greater capacity to work with partners who sometimes compete and sometimes complement, the necessity to enable and drive partner-to-partner (P2P) collaboration, and the need to work with network vs portal providers who can help us and our partners get there fast. Check out Channext as an example of this. It's time to move away from top-down, hierarchical thinking when it comes to partner management, it's time to truly embrace ecosystem thinking. #ecosystemorchestration #gotoeco