Inactive partners may need to consider if it's "...time to move on" says Synder
Dynatrace is placing increased emphasis on its partner ecosystem as a cornerstone of its strategy to scale towards a $3bn milestone. Jay Snyder, Senior Vice President of Global Partners at Dynatracestressed that, while the company already conducts the majority of its business through channel partners, there is still much room for improvement, particularly in fostering strategic—rather than transactional—relationships.
Speaking at Dynatrace’s EMEA partner event in Amsterdam, Snyder explained, “Between 60% and 90% of our business globally runs through partners, with the exact percentage varying by region.” This strong base positions Dynatrace as a significant player in the channel, yet Snyder acknowledged that the company has yet to fully unlock the potential of deeper, more aligned partnerships. “We’re not yet fully strategic. Right now, a lot of our partner activity is still more tactical—we’re aiming to change that,” he added.
Historically a leader in the Application Performance Management space, Dynatrace has transitioned over the last five years towards a “Unified Observability and Security” platform, dominating Gartner’s Magic Quadrant for observability.
The company’s ecosystem comprises over 700 partners globally, though only around 100 of these are heavily investing in dedicated Dynatrace practices. “The partners we’re really focused on are the ones reinvesting back in us,” said Snyder, referring to firms committed to building expertise and scaling their Dynatrace capabilities.
However, Snyder made it clear that all partners, large or small, have value: “It’s like a parent with their children—you love all your children, but they’re not all the same.” This leaves the majority of their partner base—about 600 firms—involved in client engagements without a clear growth trajectory. “We’re having conversations with partners who haven’t worked with us in over 18 months, determining if they want to continue or if it’s time to move on,” he explained.
Having engaged and well-trained partners is more crucial than ever, especially as organizations face increasing complexity in their IT environments. Dynatrace’s platform has evolved rapidly, and without proper expertise, partners may not fully leverage its capabilities. Snyder warned that without the right partner investment and training, clients might find themselves in a position where “we’ve sold them a Ferrari, and they’re driving a Pinto,” meaning they aren't able to take full advantage of the platform’s advanced features. This misalignment is especially problematic as businesses tackle challenges like hybrid cloud environments, AI-driven automation, and the need for greater data insights. “It’s not just about selling a product anymore; it’s about delivering true value through strategic partnerships that help clients overcome these challenges,” Snyder added.
One of the biggest opportunities for both Dynatrace and its partners lies in closer alignment with hyperscalers such as AWS and Microsoft Azure. These tech giants are incentivizing channel partners through various financial and strategic programs. “We see more and more business being driven to the hyperscaler marketplaces. It’s not just about workload migration; it’s about leveraging the funds and resources AWS and Azure make available to partners,” Snyder noted. He described this alignment as a "win-win-win" situation where Dynatrace, the customer, and the hyperscalers all benefit.
In closing, Snyder emphasized the company’s future direction: “We know we’re not perfect, but we’re getting better. We need to continue to improve, and that’s why we’ve set up regional partner councils to gather more feedback. We can’t hit £3bn without our partners, and we want to grow together.” This message of collaboration and continuous improvement remains at the heart of Dynatrace’s partner strategy.
