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The different strategies Microsoft and Google ISVs

Google Apps for Work and Microsoft Office 365 are the two big beasts stalking the cloud software world, but there are differences in approach between independent software vendors (ISVs) for the two.

This summer the Cloud Technology Alliance surveyed 39 independent software vendors (ISVs) and channel partners about their market strategies for their cloud solutions in both Google and Microsoft environments.

Among the findings are that Google Apps ISVs typically work with less than five partners, while Microsoft ISVs work with 6-10. Google ISVs are more ruthless when it comes to reviewing and cutting non-performing partners with 65 per cent doing so compared to 54 per cent of Microsoft shops. Though overall 60 perform reviews and 14 per cent do so systematically.

On the vendor side, however, 90 per cent of channel partners frequently conduct reviews of their vendor relationships. The top reasons for partners dropping vendors are, 'the solution failed to deliver,' 'The vendor failed to deliver on promises,' and 'The vendor changed our margins'.

Only 15 per cent of ISVs required their channel partners to pass a certification test on their product and they are all Google Apps shops. 40 per cent of ISVs conduct business planning with their channel partners (two-thirds of Microsoft ISVs).

Where there is agreement between Microsoft and Google Apps ISVs is that they will be investing more in channel partnerships in the future, with only 35 per cent saying their future channel investments will be the same or less.

The full report is available from the Cloud Technology Alliance site.

Image credit: Alexander Kirch/Shutterstock