As digital transformation accelerates across all industries, the role of partners in fueling organizational success has never been more crucial. A strategic and intentional partner compensation strategy helps drive that success.
Dynatrace believes partnerships are the backbone of innovation and growth, enabling businesses to deliver exceptional customer experiences and navigate the complexities of modern technology landscapes. Dynatrace recognizes the importance of empowering partners with the right kind of support and rewards. That’s why it has overhauled its economic model – streamlining margins for predictable growth and mutual success.
The goal is to enable partners to build a profitable and scalable business on the Dynatrace platform. To achieve this, Dynatrace needs three key tenets: to be simple to work with, be predictable in how Dynatrace provides incentives to partners, and ensure that partners are growing enough to reinvest in building their business while also remaining profitable.
A new partner compensation model provides simplicity, predictability, profitability
The foundation of the new Dynatrace economic model lies in its commitment to providing partners with clear and equitable compensation structures. By introducing a flat-rate model based on deal origination, Dynatrace eliminates complexity and uncertainty, ensuring that partners can expect predictable margins throughout a project. This simplification nurtures transparency, trust, and stability with our partners.
The new Dynatrace partner compensation model is designed to align partner incentives with long-term customer success. By simplifying partner revenue share percentages and enhancing rewards for multiyear deals, Dynatrace ensures that partners benefit more directly from sales efforts. This shift fosters stronger collaboration and rewards partners fairly for their contributions.
Dynatrace is establishing a flat-rate margin for all deals, and it will pay those margins consistently in years one, two, and three. Partners no longer need to maintain a spreadsheet to track margins: The result is clean and predictable.
Partners have reacted to the new Dynatrace economic model positively, seeing the mutually beneficial terms.
“Trace3 is proud to be a premier Dynatrace partner, supporting its new economic model,” said Chris Nicholas, senior vice president, Cloud Solutions Group, Trace3. “The new, simpler model enables us to manage our partnership more effectively and to streamline our engagement with the Dynatrace field teams in support of our clients. Magic happens when the synergy is mutual. Together, we are exploring the art of the possible for modern observability and the connected ecosystem.”
Other partners recognized the ease of use of the new model. “Honored to stand by Dynatrace as a premier partner, humbly supporting its new economic model,” said Frank Jahn, chief security officer, Amasol. “The new approach is simple, with predictable margins, enabling us to be more aligned with the Dynatrace sales organization. We’re thrilled to continue our joint journey toward comprehensive observability for our customers.”
There are two additional developments that coincide with the partner compensation model update, underlining the Dynatrace commitment to partners. Firstly, to ensure partners are positioned for success, Dynatrace is investing in building a centralized enablement engine focused on technical and service delivery enablement sales. This enablement engine will include access to key assets and information previously not available, supporting partners with more resources than before. Secondly, Dynatrace partners transacting through the marketplace will retain their full share of profits instead of splitting profits with the Hyperscalers. This development was born directly from partner feedback. Dynatrace listened and is taking action.
The Dynatrace commitment to alignment for long-term growth
With a firm commitment to collaboration and maximizing value for joint customers, Dynatrace is proud to announce this significant evolution of the partner compensation model. This shift in partner empowerment creates a mutually beneficial environment in which transparency, trust, and collaboration can thrive.
By simplifying margins, enhancing rewards, and positioning partners for growth, partners can rest assured that Dynatrace is ready to support them every step of the way.
For more information, visit the Dynatrace Partner Portal.
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