Analyst(s): Alex Smith, Mitch Ashley
Publication Date: September 4, 2025

The full report analyzes how platform ecosystems create unparalleled value and competitive advantage for technology vendors and their partners. It deconstructs the seven essential attributes of a modern platform ecosystem strategy. It uses the symbiotic partnership between Snowflake and Observe Inc. to illustrate how these elements create a powerful flywheel effect in the real world.

Key Points:

• Platform ecosystems represent the most critical competitive advantage for technology vendors today. They are evolving beyond traditional linear partnering models to foster bilateral value creation across the landscape. A company’s engineering department now governs the partnering philosophy much more than its sales and marketing functions.
• A successful platform ecosystem strategy integrates seven core attributes: robust developer communities with SDKs and APIs, strategic startup and ISV programs, vendor venture investments, collaborative co-sell programs, deeply integrated first-party programs, sales and servicing partner networks, and cloud marketplaces. These elements work in unison to create a powerful flywheel effect, driving innovation, expanding market reach, and increasing platform stickiness.
• The partnership between Snowflake and Observe Inc. serves as a prime example of a modern platform ecosystem in action. It demonstrates how various constructs, including developer reliance, venture investments, co-selling, and marketplace integration, all combine to create mutual value and a competitive moat for Snowflake. This symbiotic relationship highlights how building on a core platform amplifies growth for partners while solidifying the platform vendor’s market position.

Overview:

The platform ecosystem has emerged as the most important competitive moat a technology company can build. This model represents a significant evolution from older, linear partnering strategies typically led by sales and marketing functions. Today, the most successful ecosystems are governed by engineering and code, centered on supplementary development that occurs on top of a core technology platform. This activity creates a new economy of applications and workflows that rely on the underlying platform, generating immense stickiness and a natural flywheel effect.

Figure 1: The Platform Ecosystem Flywheel

A modern platform ecosystem strategy integrates seven distinct attributes that work in unison:

1. Developer Community, SDKs, and APIs: The technical foundation that allows third parties to build on the platform, fostering innovation and expanding its capabilities.
2. Startup & ISV Programs: Initiatives designed to nurture early-stage companies building on the vendor’s platform by providing credits, technical support, and go-to-market assistance.
3. Vendor Ventures: Strategic direct investments in promising startups within the ecosystem, creating a powerful alignment of interests and fueling growth that enhances the platform.
4. Co-Sell Programs: Collaborative go-to-market motions where the vendor’s and partner’s sales teams work together, expanding sales reach and delivering more complete customer solutions.
5. First-Party “1P” Programs: The deepest integration, where a partner’s technology is offered as a native, managed service on the vendor’s platform, allowing the vendor to fill portfolio gaps quickly.
6. Sales & Services Partner Network: A structured framework to manage relationships with resellers, integrators, and technology partners, providing a trusted path for partners to grow and for customers to find qualified experts.
7. Cloud Marketplace: A centralized digital storefront that simplifies the discovery, procurement, and deployment of third-party applications, accelerating adoption for the vendor, partner, and customer.

The full report is available via subscription to Futurum Intelligence’s Ecosystems, Channels, and Marketplaces Practice—click here for inquiry and access.

Futurum clients can read more in the Futurum Intelligence Platform, and non-clients can learn more here: Ecosystems, Channels, & Marketplaces Practice.

About the Futurum Ecosystems, Channels & Marketplaces Practice

The Futurum Ecosystems, Channels & Marketplaces Practice provides actionable, objective insights for market leaders and their teams so they can respond to emerging opportunities and innovate. Public access to our coverage can be seen here. Follow news and updates from the Futurum Practice on LinkedIn and X. Visit the Futurum Newsroom for more information and insights.

Author Information

Alex Smith

Alex is Vice President & Practice Lead, Ecosystems, Channels, & Marketplaces at the Futurum Group. He is responsible for establishing and maintaining the Channels Research program as part of the overall Futurum GTM and Channels Practice. This includes overseeing the channel data rollout in the Futurum Intelligence Platform, primary research activities such as research boards and surveys, delivering thought-leading research reports, and advising clients on their indirect go-to-market strategies. Alex also supports the overall operations of the Futurum Research Business Unit, including P&L segmentation, sales and marketing alignment, and budget planning.

Prior to joining Futurum, Alex was VP of Channels & Enterprise Research at Canalys where he led a multi-million dollar research organization with more than 20 analysts. He played an integral role in helping the Canalys research organization migrate into Omdia after having been acquired in 2023. He is an accomplished research leader, as well as an expert in indirect go-to-market strategies. He has delivered numerous keynotes at partner-facing conferences.

Alex is based in Portland, Oregon, but has lived in numerous places, including California, Canada, Saudi Arabia, Thailand, and the UK. He has a Bachelor in Commerce and Finance Major from Dalhousie University, Halifax Canada.

Mitch Ashley

Mitch Ashley is VP and Practice Lead of Software Lifecycle Engineering for The Futurum Group. Mitch has over 30+ years of experience as an entrepreneur, industry analyst, product development, and IT leader, with expertise in software engineering, cybersecurity, DevOps, DevSecOps, cloud, and AI. As an entrepreneur, CTO, CIO, and head of engineering, Mitch led the creation of award-winning cybersecurity products utilized in the private and public sectors, including the U.S. Department of Defense and all military branches. Mitch also led managed PKI services for broadband, Wi-Fi, IoT, energy management and 5G industries, product certification test labs, an online SaaS (93m transactions annually), and the development of video-on-demand and Internet cable services, and a national broadband network.

Mitch shares his experiences as an analyst, keynote and conference speaker, panelist, host, moderator, and expert interviewer discussing CIO/CTO leadership, product and software development, DevOps, DevSecOps, containerization, container orchestration, AI/ML/GenAI, platform engineering, SRE, and cybersecurity. He publishes his research on futurumgroup.com and TechstrongResearch.com/resources. He hosts multiple award-winning video and podcast series, including DevOps Unbound, CISO Talk, and Techstrong Gang.