Greetings Sysdig channel partner community! I am pleased to share an update as our “Channel First” strategy is showing momentum with customers, partners and their profitability – and continues to drive Sysdig growth.
Customers turn to Sysdig
As customers move to the cloud and containerized environments and drive digital transformation, they broaden their exposure to vulnerabilities, threats and misconfigurations. Sysdig’s industry leading solutions address these challenges head on; it is for this reason that we consider ourselves extremely relevant to our customers.
Our Channel First focus has driven both Sysdig-initiated pipeline growth (business we have brought to partners) and deal registration growth with our partners by 2x QoQ. We are bringing deals to our strategic GTM partners to let them experience the power of Sysdig!
Focus on profitability attracts visionary partners
From a partner standpoint, since announcing the strategy late last year, we have signed more than 45 new partners globally. A few of our new partners include: CDW, CDW-CA, Corvallis, Defy, Evotek, Guidepoint, Mineiros, SHI, SVA, and distributors like Exclusive Networks and TD/Synnex.
We want our partners to be profitable! It’s very important to me that our partners understand our intent toward partner profitability. To that point, I’d like to detail just how we do that:
- Healthy Margins: Sysdig is paying healthy margins on all partner-initiated deals in two fundamental ways. First, discounts are established after end-user buy price is confirmed. We consider this critical to ensure our partners still make healthy margins in situations with deal compression. Second, Sysdig does not decline discounts in future years. Our partners earn the same discounts YoY.
- Recurring Revenue: Our best in class renewal rates exceed 90% and demonstrate the stickiness of our platform and the value we deliver to our customers. Our dollar based net retention was above 135% for the seventh consecutive quarter demonstrating our high velocity land and expand motion.
- Sales Incentives: Sysdig is paying $500 (via American Express gift card) to all partner AEs just for getting us a meeting to discuss cloud and container security. The spiff is paid immediately following the meeting, whether or not an opportunity is identified.
- Customer Incentives: To help partner sellers secure that meeting (and $500!), we allow our GTM partners to offer a door opener incentive to customers in exchange for taking the meeting. Customers can choose from one of the following:
- Bottle of Silver Oak Cabernet wine
- Pair of custom Nike Shoes
- Solo Stove outdoor fireplace
- TheraGun massage therapy device
- Closed Deal Incentives: Sysdig is paying both the partner AE and partner SE up to $2,000 (based on deal size) for winning a deal with Sysdig, regardless of who initiated the deal. The spiff is paid in the form of an American Express gift card immediately after the deal closes.
Sysdig’s growth strategy is unchanged
Lastly, I’d like to cover Sysdig’s growth and how we see macroeconomic concerns impacting our business. We continue to execute on our growth strategy:
- Our company is extremely well-positioned financially, our solutions are highly relevant to cloud and container security priorities, and we continue to hire.
- There are very few customers who aren’t moving their workloads to the cloud and/or building their applications in the cloud. There are many benefits to doing both, but it’s critical they secure those workloads. It is in these areas where Sysdig leads the industry with our security solutions.
- We continue to invest in our channel partnerships and solve customer cloud and container security challenges. Did you know…
- Sysdig has committed all deals with customers outside the Global 500 must go through a partner. It’s this focus, that’s grown Sysdig-initiated pipeline by 2x QoQ.
- This quarter alone, we have conducted over 20 in-market customer events with our partners and continue to invest heavily in our partner relationships. Thank you to AWS, Optiv, Set Solutions, SHI/Stratascale, and Trace3 for making Sysdig’s RSA dinner a big success!
- We are in the midst of building AE & SE certifications and accreditations and expect to launch this month. Be on the lookout to sign up!
We invest in our partners because we know how relevant they are to customers and how important they are to Sysdig’s long-term success. We invite you to meet with us at upcoming events to hear more and stay up to date. Come see us: