Palo Alto Networks 25% YoY growth on an impressive $6.9Bn ARR is worthy of attention in the current environment. What's their secret?
Not just partnerships – they're 💡 redefining their GTM with an “in-it-together” model.
They even forecast a growth rate for the next 3 years that outpaces the cybersecurity market's. Here's how they plan to do that.
☁️ 75% Growth in Cloud Service Providers segment
Palo Alto made an early bet on cloud marketplaces. Now their bookings from CSPs are growing at 75%. This is 15X faster than their core sales productivity growth. Impressive.
Dipak Golechha, their CFO explained last week:
“We have seen standout growth from new ecosystem partners, including the cloud service providers and global system integrators.
Not only has our business transacted through these channels increased, but more importantly, so has our success leveraging these partners as influencers.."
Palo Alto is recognizing that technology today isn’t just about selling products anymore. “Our ecosystem is also playing a critical role as we move from selling products to architecting outcomes.” BJ Jenkins, its President shared:
✔️ 5 years ago: 70% of Palo Alto's GTM was partner-led, but transactional
“5 years ago, we sold a single product, primarily hardware firewalls as part of a larger partner-delivered motion. Most of our partners were focused on transactional fulfillment of customer orders.”
✔️✔️ Today: They co-sell with over 150 partners, each contributing $10M+
“Today, we are deeply embedded with strategic partners across all routes to market and are co-leading the sales motions with our partners to deliver joint solutions.”
✔️✔️✔️ Future: Selling and building together
“In the future, we're going to continue to strengthen our sell-together motion by building integrated offerings with a shared focus on improving client outcomes. Our top 30 partners will become even more important, and we're looking to drive $10 billion plus of business with them.”
🔄 Transitioning from Single Sales to Holistic Customer Engagement with Partners
To ensure that customer extracts maximum value from their offerings. Palo Alto emphasizes a seamless post-sales experience.
“Delivering the best security outcomes means that our customers' post sales' experience must also undergo a shift… We also plan to scale our global network of 300-plus fully certified professional service partners in order to further expand our ability to deploy our products with speed and agility. And last but not least, we will increase adoption by staying with our customers throughout their entire journey. “
Palo Alto isn't just emphasizing partnerships. They're truly "in it together," championing growth with partners across the entire customer journey.
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