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What is the Salesforce OSP Partner Program?

Salesforce’s Outsourced Service Provider (OSP) program is a newer way to go-to-market with Salesforce. Very simply, Salesforce OSP gives partners a way to generate revenue off of license sales—something that North American partners haven’t been able to do before.

However, don't think of this a reseller model.

An OSP deal is typically less about selling clouds, and more about selling market-ready solutions that solve use cases for specific markets, segments, and industries.

The ultimate goal of the program is to open up markets for Salesforce licenses in ways that haven’t been previously available. Below we cover three ways the Salesforce OSP partner program can work well.

Three ways the Salesforce OSP model can work well:

This is an exciting area of growth for both Salesforce, as well as the right set of partners who can manage the investment and risks. There are great opportunities to establish your company and give it a distinct advantage in the market as Salesforce reimagines their ecosystem.

#1 - Solution-specific market opportunity

Partners create or build a unique solution or set of solutions that serve a market need Salesforce doesn’t traditionally sell to. Examples of solution-specific market opportunities that would be a great fit for Salesforce OSP:

Construction management solution built on Sales and Experience Cloud, with the out-of-the-box integrations and add-ons that are attractive to Construction firms.
Recruitment management and marketing solution built for the clean energy industry, or the oil industry that organizes all the information and third-party databases needed to help recruit and communicate with potential contractors, manage engagements, and help a firm understand the profitability of each engagement.

#2 - CapEx instead of OpEx

Software and SaaS licenses are considered OpEx, and Salesforce is no different. This can kill a deal. Licenses purchased via OSP are “used” by an end customer but owned by a partner, sold as a solution, thus allowing the end customer to potentially shift cost to CapEx.

#3 - BPO or Agency

Do you manage applications for a customer (they are hands-off the product)? Why not generate margin on the licenses?

Why not just go the ISV route?

A reasonable question to consider. You certainly could, but by going through Salesforce OSP you retain your IP, can make money off of customizations for individual accounts, AND you get the ongoing revenue from the Salesforce licenses your customer is using.

Agency or service providers can also add more value to their offerings by taking charge of the tasks that clients aren’t able to, or interested in, completing on their own, such as:

Call center solution: Running outsourced call centers for end-clients that use Salesforce in their business.
Marketing agency services: Building all the brand and content for customers. Bring marketing automation into the fold and gain a larger slice of the marketing budget, while reducing the burden on your client's internal marketing resources.

Partnership considerations

Salesforce has made an effort to reduce channel conflict by comping the core AEs on deals for your solutions. In theory, these AEs are incentivized to help you sell the deal. In my experience there are still some hurdles to overcome with AEs who want to retain control of accounts. That said, OSP partners get an assigned account manager. This account manager serves as a go-between for your organization and Salesforce, ensuring there’s alignment with the account team.

Having a solid working relationship with your account manager, and by extension the AEs, is important. While Salesforce may promote your solution into relevant teams, in my experience you’re going to have to be proactive in driving deals with Salesforce (by bringing accounts).

What doesn’t work?

Salesforce isn’t interested in moving existing licenses over to an OSP partner. Why? That would be more of a reseller play, and we all know Salesforce hasn’t jumped into a reseller strategy in North America. The same goes for renewals - you aren’t going to convince Salesforce to move a client onto your paper for a straight renewal.

Other things to consider before becoming a Salesforce OSP

Are the license margins good enough? How does this impact your valuation? What’s your liability when a customer cancels? How do you contract this with your end customer? In an era where Salesforce is looking for partners to drive leads for license, OSP could be a good way for you to become more important to the Salesforce field organization and improve your bottom line.

Ready to get started?

I’ve advised and worked with a few partners on Salesforce OSP. If this is something you want to consider, reach out with the form above and let’s discuss.

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What is Salesforce OSP?

Salesforce OSP (also known as the Salesforce OSP Partnr Program) gives partners a way to generate revenue off of license sales. This is a new revenue stream for North American partners who did not have this option before. Salesforce OSP is not a reseller model. The goal of the Salesforce OSP program is to open up markets for Salesforce licenses in ways that haven’t been previously available. A Salesforce OSP deal is typically less about selling clouds and more about selling market-ready solutions that solve use cases for specific markets, segments, and industries.
Should you become a Salesforce OSP?

I’ve had a number of conversations with firms looking at Salesforce OSP as a possible way to differentiate themselves from the slew of Salesforce partners out there. For some firms this is a great option—namely those who can manage the investment and risks. Solution-selling firms are also many great targets for Salesforce OSP.
What applications make good Salesforce OSP solutions?

Do you do a ton of work in a specific sub-industry? Do you have an MVP or Accelerator that is attractive to specific types of customers? A unique solution or set of solutions built on Sales and Experience Cloud that serves a market need Salesforce doesn’t traditionally sell to will make a good Salesforce OSP solution. Solutions that combine out-of-the-box integrations and add-ons that appeal to industries like construction, call centers, agencies, healthcare, or manufacturing also work well with Salesforce OSP.
What are typical industries that can improve margins with Salesforce OSP program

Financial services, healthcare, SaaS, and manufacturing can all benefit from selling a solution not just Salesforce implementation. Any solution in any industry that serves a market need Salesforce doesn’t traditionally sell to will be a great fit for Salesforce OSP.
How does Salesforce OSP shift SaaS purchases from OpEx to CapEx?

Licenses purchased via OSP are “used” by an end customer but owned by a partner, sold as a solution, thus allowing the end customer to potentially shift the cost to CapEx.
What products and services work with the Salesforce OSP model?

Solution-specific market opportunities are the best solution for Salesforce OSP. Ideally, partners can create or build a unique solution or set of solutions that serve a market need Salesforce doesn’t traditionally sell to. This approach can help you to become more important to the Salesforce field organization and improve your bottom line. Plus, solution selling helps customer retention—especially if no one else offers what you do.
How can new Salesforce OSP partners standout to Salesforce?

Be sure to have your Total Addressable Market (TAM) identified. It helps if you already have key customers and prospects who will buy the solution you want to bring to market. Ensure there is a market need not being met. And don't forget you need capital for the development, marketing and operational costs to bring a solution to market.
What businesses are a good fit for the Salesforce OSP model?

Partners that can create or build a unique solution or set of solutions that serve a market need Salesforce doesn’t traditionally sell to are a great fit for Salesforce OSP. That may require advice for go-to-market strategy that I can provide, as well as investment in development and other costs if this is not something your firm already offers. BPO and Agencies can also improve margins and make more money with Salesforce OSP by generating margin on the licenses for apps they already manage for customers.