ISV GTM Sales Motion with Hyperscalers: A study in contrasting priorities

In the ever-evolving tech landscape, Independent Software Vendors (ISVs) play a crucial role in building innovative solutions. However, one of the biggest challenges they face is scaling their offerings and tapping into broader markets. Partnering with Hyperscalers like Amazon Web Services (AWS) , Microsoft Azure , Google Cloud , Oracle etc presents an exciting opportunity for ISVs to extend their reach, but it also requires careful navigation of the sales motions involved.

Here’s a breakdown of the key insights and strategies for ISVs looking to leverage Hyperscalers in their Go-To-Market (GTM) strategy, based on my time in the tech industry and as the founder at Channlworks.com .

Defining the Players

For the purpose of this discussion, I am going to call an ISV as a software company building its products on a Hyperscaler’s infrastructure, where the Hyperscaler provides a robust platform for that product to scale. But beyond just infrastructure, ISVs need more from their Hyperscaler partners to succeed.

Types of Go-To-Market Support

When it comes to GTM support, ISVs can benefit from both non-cash elements(Qualitative) and cash elements(Quantitative). Non-cash elements include (but not limited to) client proof of value (PoV) credits, sandbox environments, joint case studies and public relations opportunities. On the other hand, cash elements such as market development funds (MDF), funded deals, funded (fully or partial) joint events and roadshows help ISVs gain more visibility and customers.

The ISV growth journey with the Hyperscalers

As ISVs grow, their needs from Hyperscalers evolve through different stages:

1. MVP Stage: Early-stage ISVs benefit most from sandbox environments, PoC credits and brand association. They need Hyperscalers to support them with early referrals to gain traction.
2. Growth Stage: ISVs now focus on generating leads. At this stage MDF funding, joint case studies and joint PR (Public Relations) become critical, along with more significant deals, roadshows and marketplace exposure.
3. Scaling Stage: By this point, co-selling and co-marketing initiatives with Hyperscalers take center stage, with continued MDF support, funded deals and more opportunities for joint case studies and roadshows.
4. Hyper-Growth Stage: This is where everything ramps up. Joint events, marketplaces, co-selling, and co-marketing with Hyperscalers enable rapid scaling.

Diverging Priorities: ISVs vs. Hyperscalers

One of the fundamental challenges in the ISV-Hyperscaler relationship is the difference in priorities. While ISVs are primarily focused on gaining leads, generating demand and closing deals, Hyperscalers have their own objectives that often operate in reverse. For Hyperscalers, the emphasis is first on increasing infrastructure usage and only later on direct sales and co-marketing activities. In essence, Hyperscalers prioritize scaling infrastructure at the early stages, while ISVs are focused on sales acceleration. This misalignment can create friction, especially when the ISV's sales-driven approach doesn't sync with the Hyperscaler's infrastructure-first mindset.

5 Myths About Hyperscaler GTM Motion

1. Superior technology alone guarantees success- Many ISVs believe that having the best technology is enough to guarantee success when partnering with a Hyperscaler. While having cutting-edge technology is critical, success is driven by more than just superior products. The ecosystem around the technology — including marketing, sales enablement, partnerships, and go-to-market alignment — plays a massive role in determining the trajectory of an ISV.

Reality: Hyperscalers prioritize infrastructure adoption, and even if your technology is innovative, you still need strong customer engagement, demand generation, and brand awareness strategies. Hyperscalers often look for ISVs that can bring established customer demand to their platforms, not just those with great technology.

2. Local success will automatically translate to global success- This myth stems from the assumption that success in one region or market will naturally replicate across other regions. ISVs often believe that if they perform well in their home market or a specific geography, Hyperscalers will support them globally.

Reality: Every region has different market dynamics, customer needs, and regulatory environments. Hyperscalers tend to have regional business goals, and success in one area doesn’t guarantee attention or resources in another. ISVs need to demonstrate a localized strategy, understanding of local customer needs, and the ability to scale regionally before they can expand globally with a Hyperscaler. Global success often requires region-specific GTM approaches, local partnerships, and substantial effort to build credibility in new markets.

3. Switching between Hyperscalers accelerates GTM efforts- Some ISVs think that by partnering with multiple Hyperscalers or frequently switching between them, they can access a wider market and accelerate their go-to-market efforts faster.

Reality: Building a deep, strategic relationship with one Hyperscaler often results in more sustained support and resources compared to spreading efforts across multiple Hyperscalers. Switching between Hyperscalers or trying to work with several at once can dilute focus and lead to shallow integrations and partnerships. Hyperscalers tend to invest more in ISVs that show commitment and alignment with their ecosystem. Constantly switching could also signal instability, hindering the ISV’s credibility.

4. Hyperscalers will provide leads- This is a common misconception where ISVs expect that once they partner with a Hyperscaler, they’ll automatically receive a steady flow of leads from the Hyperscaler’s customer base.

Reality: Hyperscalers don't typically hand over leads directly. While they might co-market, co-sell, or offer a platform for ISVs to reach customers (e.g., through a marketplace), the responsibility of generating leads and driving sales still falls on the ISV. To receive significant lead support, an ISV needs to invest in joint marketing activities, provide a clear value proposition, and prove their value within the Hyperscaler’s ecosystem. Lead generation is still very much a collaborative effort, not a one-sided benefit.

5. Success on a marketplace is guaranteed- Many ISVs assume that simply listing their product on a Hyperscaler’s marketplace (AWS Marketplace, Azure Marketplace, etc.) will guarantee visibility and sales success.

Reality: Marketplaces offer access, but they don’t guarantee traction. It’s up to the ISV to promote their offering, differentiate from competitors, and create demand. Being on a marketplace is just the starting point—ISVs need to invest in continuous marketing, solution differentiation, customer testimonials, and incentives to stand out. Hyperscaler marketplaces are highly competitive, and without a strong marketing plan, even the most innovative products can get lost among other listings.

If you are from a non-US market, Marketplace(for majority of ISVs) dont offer much gains in client aquisitions.

Key Takeaways

1. Your scale defines your GTM strategy: The larger you are, the more you can leverage Hyperscaler support.
2. Don’t expect magic overnight: You’ll need to reach a certain scale before seeing any significant traction with Hyperscalers.
3. Choose your battles wisely: Focus on specific verticals, geographies or segments that align with your product.

Understanding these dynamics can help ISVs make more informed decisions when partnering with Hyperscalers, enabling them to unlock new growth avenues while avoiding common pitfalls.