Competition for Best-in-Class Alliance Partners Heats Up, IDC Says

FRAMINGHAM, MA – JUNE 5, 2000 – 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.

 

"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," said Nicole Gallant, an analyst with IDC's 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.

"Organizational alliances embrace the undefined, untapped potential of the alliance members," Gallant said. "Typically global in scope and vision, they are considered integral to the future growth of a company and represent the most significant drain on management resources, compared with all other strategic alliance assets."

Strategic Alliances 2000: Winners, Innovators, and the Next Generation is based on IDC research examining strategic alliance relationships in the high technology industry. It is 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. The report also examines key factors important to the regional rollout of global strategic alliances in the geographies of South America, Western Europe, North America, and Asia/Pacific. To order a copy of the special report, contact Cheryl Toffel at 1-800-343-4952, ext. 4389 or at ctoffel@idc.com.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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