How Arctic Wolf is Driving Success with Channel + Cloud GTM
Since its founding, Arctic Wolf has been at the forefront of delivering effective security operations outcomes via its cloud-native platform. Serving organizations of all sizes, it provides managed security operations, including Managed Detection and Response (MDR), Managed Risk, Managed Security Awareness, and Incident Response, all backed backed by a team of security experts that monitors security data 24/7, to to quickly detect, respond to, and recover from advanced cyber threats.
Serving thousands of customers globally across the US, Europe, ANZ, and South Africa, Arctic Wolf knew that in order to continue to expand its reach and impact, it had to adapt to how customers want to transact, leading the ISV to embrace a Cloud GTM strategy.
Arctic Wolf has always relied heavily on its channel partners. With a network of over 1,900 partners, its existing strategy was well-established and successful. However, as customer preferences evolved, so did the need for a new approach. Customers increasingly wanted to transact through Cloud Marketplaces to take advantage of the ability to burn down committed cloud spend, driving Arctic Wolf to adapt and adopt a Cloud GTM strategy. This shift not only aligned with market trends but also catered to the changing needs of its channel partners.
Steve Craig, Chief Revenue Officer at Arctic Wolf, said, “The channel is vital for Arctic Wolf and continues to evolve. We will remain a strong channel-first company, but our channel partners are evolving too. It’s not just about what our customers want to buy; it’s also about how our channel community and distributors want to conduct business. It makes good sense for us.”
The Channel’s Movement Towards Marketplace
The technology channel is undergoing a transformative evolution toward a Marketplace motion.
Channel partners are key players in the software purchasing process for many partners. These channel partners have deep domain expertise in solution areas and may have a long-term, trusted advisor relationship with customers. Traditionally, the channel operates within a linear supply chain. Channel partners collaborate with other organizations to market or sell their services, products, or technologies, often involving co-branding efforts to leverage combined marketing strengths and audiences.
However, the emergence of Cloud Marketplaces has reshaped this landscape. The channel is currently experiencing a bifurcation; some partners are adapting to changes, while others struggle with sellers’ compensation plans and new routes to market. Those who don’t adapt will likely face challenges as customer buying behaviors evolve. Canalys predicts that nearly a third of Marketplace transactions will involve channel partners by 2025.
This shift towards Marketplace enables the channel to reach a broader audience, streamline transactions, and enhance visibility in a crowded market. By participating in the Cloud Marketplaces, channel partners can leverage advanced analytics, automated procurement processes, and integrated marketing tools, driving efficiency and growth.
Arctic Wolf’s Partnership with Tackle
“Tackle’s Platform excelled in providing the necessary data to get our legal and operations teams on board. Tackle had the best user interface, and our team found it easy to use.”
To cater to customers’ preferences and buying habits, bridging the gap between these channel partner relationships and the Cloud Marketplace purchasing sales motion is crucial. Arctic Wolf’s partnership with Tackle helped them achieve this.
Sean Phillips, Sr. Director of Alliances, reviewed several platforms before deciding on Tackle. In choosing Tackle, Sean said, “Ensuring a smooth booking process from the Marketplace was crucial for us. Tackle’s Platform excelled in providing the necessary data to get our legal and operations teams on board. Tackle had the best user interface, and our team found it easy to use without needing to log into the AWS Marketplace Management Portal (AMMP). The automated emails you provided were so robust that our team still uses them as proof of purchase.”
This ease of use was crucial for Arctic Wolf, especially because its team was new to Marketplace.
Key benefits of the Tackle Platform for Arctic Wolf
Tackle has been instrumental in enhancing Arctic Wolf’s operations by offering:
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- Streamlined processes. With everything integrated into a unified platform, Arctic Wolf’s finance and operations teams can easily access disbursement information via a user-friendly dashboard. This eliminates the need to log in to the management portal, reducing the workload and simplifying report access.
- Valuable sales insights. The actionable intelligence provided by Tackle Prospect identifies customers who prefer Marketplace transactions on platforms like AWS and enables the sales team to target highly-qualified customers with tailored messaging.
- Efficient listing management. Sean said, “The Tackle Platform’s ability to manage our listings is one of the biggest benefits. Tackle ensures compliance with AWS and makes the offer process simple with an easy-to-use interface. The offer tracking capability, including email notifications from our partners, is extremely valuable.”
Working with a Tackle Coach
Arctic Wolf’s Tackle Coach has been an incredible asset to the ISV, stepping in as a Marketplace subject matter expert where none existed. Sean said, “Our Tackle Coach is awesome. Since we don’t have a dedicated SME around this at Arctic Wolf, she helps us answer questions from deeply in the weeds to high-level. Outside of answering questions, she’s also really good at being proactive and helping us fill in gaps, especially with seller knowledge, through her time, support, and documentation. Her expertise has been invaluable.”
In addition to tackling specific operational questions, Arctic Wolf’s Tackle Coach has proactively built a plan to address Arctic Wolf’s core go-to-market gaps. She has focused on improving seller knowledge, accommodating both those familiar with AWS and co-sell and those who aren’t.
Arctic Wolf’s Coach has also supported the traditional channel team, accustomed to working with resellers and MSP partners, by providing documentation and support to better collaborate with the hyperscalers. Her comprehensive approach has significantly enhanced Arctic Wolf’s operational efficiency and market effectiveness.
Implementing change in a mature ISV
“We had to slowly pivot over the years to move forward. Our success depended on getting all these teams onboard for the ride.”
Embracing a Cloud GTM strategy was a no-brainer for Arctic Wolf. However, gaining the necessary support for Arctic Wolf’s Cloud GTM motion took multiple years. For a decade-old company, shifting to a GTM strategy for multiple teams and adding a new route with a Cloud Partner is no simple task.
Craig said, “Unlike startups that are two or three years in, we had a mature go-to-market approach with a decade of channels, 1,900+ partners, and established marketing and sales tactics. We had a customer success team managing our existing customers with well-built processes. Changing this requires incremental adjustments and keeping the integrity of our channel program was of the utmost importance. It’s a different effort compared to companies with fewer people who face less friction. We had to slowly pivot over the years to move forward. Our success depended on getting all these teams onboard for the ride.”
Getting internal stakeholder buy-in on Cloud GTM
For newer companies, gaining buy-in might be easier, but shifting an entire strategy for multiple teams in an established company is complex.
According to Sean, getting stakeholder buy-in begins with trust. The team needed its own members to believe in the vision, understanding that the strategy was advantageous. However, progress hinges on the level of trust and relationships in place. Securing support from numerous stakeholders, who were aware of the initiative but hadn’t yet contemplated its direct impact on their specific business lines, was crucial. Building this trust allowed for faster movement and greater reach in their efforts.
When asked about the challenges of gaining buy-in from various teams, Steve emphasized the importance of striking a balance between inclusive decision-making and authoritative action. This approach is crucial, especially in a growing company like Arctic Wolf.
Building a relationship with AWS
Arctic Wolf’s proactive approach led to positive responses from AWS for specific requests and changes. This partnership, characterized by clear communication and mutual support, showcased Arctic Wolf’s ability to take initiative and excel independently. By taking charge and distinguishing themselves through its own efforts, Arctic Wolf demonstrated the importance of self-reliance, especially in an environment where major Cloud Providers like AWS can’t offer intensive support to every partner. The ISVs’ success underscores the value of standing out through proactive and innovative actions.
When asked about building a relationship with AWS, Sean said, “For other companies, even those with significant valuations like ours, it’s important to realize that to the major Cloud Providers, you might still be considered small. Prepare to do the heavy lifting yourself because these providers can’t possibly support every partner intensively. Success requires taking the first steps and standing out through your efforts.”
As Arctic Wolf’s performance improved, so did its relationship with AWS. Initially, AWS prioritized other aspects of the partnership over Marketplace traction. However, as Arctic Wolf demonstrated consistent results, Marketplace became the primary focus for AWS from a partner perspective. This shift reflects the evolving landscape and the growing importance of Marketplace traction in measuring success.
Wins with Cloud GTM and key channel partnerships
In addition to building its relationship with AWS, Arctic Wolf has achieved big wins with its strong channel partnerships. Its collaborative efforts with key partners has significantly propelled the ISVs growth and enhanced its market presence.
Success with key partners
Sean highlighted the pivotal role Arctic Wolf’s top channel partners, significantly contribute to Arctic Wolf’s success. “We have several strong partners that have been very supportive, engaged, and helpful.”
Recently, Arctic Wolf closed a major deal on the Marketplace, demonstrating their partner community’s exceptional engagement and support of the Cloud GTM motion. This collaboration underscores the importance of strong partnerships in driving business growth and customer satisfaction.
Leveraging AWS for customer success
Arctic Wolf’s partnership with AWS has been marked by trust, execution, and mutual growth. As this relationship has developed, AWS has collaborated to meet Arctic Wolf’s specific business needs. This flexibility has allowed Arctic Wolf to influence changes and gain access to important discussions, as evidenced by its invitation to the Security Partner Advisory Board.
A key aspect of this partnership is the GTM collaboration. AWS and Arctic Wolf have reached a level of execution and commitment where they actively work together in the field, closing deals and scaling effectively. This hands-on approach, working deal by deal and leader by leader, has been crucial to their joint success. By helping Arctic Wolf close customers and increase usage, AWS ensures its own business growth alongside its partner’s success.
Key Takeaways
To recap: Arctic Wolf’s recent strategic initiatives showcase its forward-thinking approach and commitment to industry leadership. Arctic Wolf’s success has been defined by:
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- Adaptation to Market Trends: Arctic Wolf’s shift to a Cloud GTM strategy showcases its agility in aligning with evolving customer and channel preferences, ensuring the company remains competitive and relevant in a rapidly changing landscape.
- Channel-First Model: By maintaining a channel-first model while also embracing Cloud Marketplaces, Arctic Wolf has strengthened its distribution capabilities and fostered robust partnerships, enhancing its market reach and influence.
- Increased Revenue: Arctic Wolf’s strategic initiatives and effective market adaptation have led to revenue growth, underscoring the success of its innovative approaches and strong market presence.
- Strong Partnerships: Collaboration with key partners such as AWS has been instrumental in driving business growth and achieving customer success, leveraging these alliances to offer comprehensive and innovative solutions.
- Operational Excellence: Streamlined processes and enhanced sales insights through the Tackle Platform have significantly improved Arctic Wolf’s operational efficiency, enabling the ISV to respond more effectively to market demands.
- Proactive Change Management: Successfully navigating internal and external stakeholder buy-in for strategic shifts highlights Arctic Wolf’s leadership and vision, demonstrating its ability to manage change proactively and maintain organizational alignment.
These key takeaways highlight Arctic Wolf’s strategic prowess and commitment to continuous improvement, paving the way for sustained growth and success in the cybersecurity industry. We look forward to continuing our partnership with Arctic Wolf on its Cloud GTM journey.
