Competition For Best-in-Class Alliance Partners Heats Up.

Strategic alliances in the technology industry are no longer an afterthought - they are an imperative. Chosen well and managed wisely, strategic alliances leverage risk, shorten time to market, expand global capabilities, and create new opportunities for business growth. IDC believes the rapid pace of outsourcing and downsizing, as well as the Internet economy and the innovations that are driving it, will continue to fuel the complexity and commitment of existing alliances and drive fierce competition for best-in-class partners. Their conclusions were based on detailed interviews with 50 professionals involved in selecting and implementing strategic partnerships at high technology industries to better understand the nature of their alliance relationships and their professional opinion on factors driving success.

"In today's economy, much attention is placed on alliances; sometimes who you are aligned with is as important, if not more important, than what you do together as alliance partners," says Nicole Gallant, an analyst with Software Partnering and Alliances research program. "Your alliance partners are your most important asset in the eyes of the stock market, investors, other alliance partners, customers, and employees. They can make or break you."

IDC found an increasing focus on building organizational alliances, which involve a high level of entrenchment and integration of partner business processes to create a virtually seamless market offering. While interest in the four other types of strategic alliances (endorsement, influence, integration, and solution) continues to be strong, there is a much higher propensity for alliance partners to make investments and commitments to top-tier partnerships.