The following is a question-and-answer session between Brad Buhl, CRO at Broadleaf Commerce, and Jayme Reynolds, Principal Director and Commerce Partner Lead at Broadleaf’s global SI partner, Grid Dynamics.

Across five questions, Jayme provides insights into Grid Dynamics’ approach to digital transformation, including their unique Build-Operate-Transfer model, perspectives on Composable Commerce, guidance on cloud strategy, and the key differentiator that sets Grid Dynamics apart from other system integrators.

Q&A

Question: At Broadleaf, we've not only worked with Grid Dynamics for years with joint client Services across both North American and EMEA. I'm curious what your split is now of the main geographies of the clients you serve and where Grid Dynamics’ employees are located? 

Answer: Grid Dynamics is a global organization with offices across the Americas, Europe, and India. By nature of being a U.S.-founded company, our customer split is skewed to North America, followed by Europe, with other regions also supporting existing and new clients. Our almost 5.000 employees are in 19 countries with significant representation in Europe and India followed by the Americas. 

Question: Related, there is a traditional Build-Operate-Transfer, or BOT model, that a lot of our clients over the years have strongly preferred when migrating their legacy eCom solution. How does Grid Dynamics approach a BOT model that might be different from other system integrators in the market? 

Answer: We build our teams to fit the needs of our clients. This includes a variety of business models from integrated POD (Product-Oriented Delivery) teams to 24/7 support teams to the BOT model on a few occasions.

Grid Dynamics' Differentiated Approach to the Build-Operate-Transfer Model in Digital Transformation

Grid Dynamics has developed a specialized implementation of the Build-Operate-Transfer (BOT) model that addresses critical pain points in enterprise digital transformation programs, particularly for organizations migrating legacy eCommerce systems. While maintaining the core BOT framework of phased infrastructure development, operational management, and knowledge transfer, the company introduces several strategic differentiators that enhance value delivery compared to conventional system integrators.

A. Strategic Talent Cultivation Through Localized BOT Implementation

Hyperlocal Talent Pipeline Development

Grid Dynamics' BOT engagements emphasize creating self-sustaining engineering ecosystems rather than temporary project teams. During our expansion into Hyderabad (2022), the company combined BOT partnerships with direct hiring campaigns and academic collaborations to build a 1,000-engineer hub within 10 months. This three-pronged talent strategy ensures:

1. Domain-Specific Expertise: Vertical-focused squads for retail, finance, and manufacturing sectors
2. Technology Depth: Centers of Excellence for AI/ML, cloud native development, and data engineering
3. Operational Continuity: Redundant skill pools across geographies for 24/7 delivery capabilities

The approach contrasts with traditional BOT implementations that often create single-project teams without long-term capability building. By institutionalizing knowledge through formal training programs and internal certification paths, Grid Dynamics ensures transferred operations maintain innovation velocity post-handover.

B. Integrated Co-Innovation Framework

Collaborative Solution Development

Grid Dynamics embeds its BOT engagements within a broader co-innovation ecosystem, as demonstrated in the GroupBy partnership for Google Cloud Retail Search integration. This model introduces three critical enhancements:

1. Architecture Councils: Joint client-vendor governance for solution design
2. IP Sharing Agreements: Co-ownership of platform extensions and accelerators
3. Continuous Feedback Loops: Real-time user behavior integration into development cycles

Our work with a Fortune 500 automaker exemplifies this approach, where a BOT engagement for dealer portal modernization produced 17 patent-pending innovations in conversational AI and inventory optimization.

C. Risk-Weighted Commercial Models

Performance-Linked Pricing Structures

Grid Dynamics restructures traditional BOT financial arrangements through:

1. Phase-Gated Investments: Client payments tied to capability maturity milestones
2. Shared Savings Models: Joint participation in operational efficiency gains
3. Transition Warranties: Post-transfer SLAs with penalty/bonus structures

In a recent BOT engagement for a European retailer's cloud migration, this model reduced total program risk exposure by 42% compared to fixed-bid alternatives while accelerating ROI realization by 9 months.

D. Augmented Transition Assurance

Multi-Modal Knowledge Transfer

The company's transfer phase incorporates three complementary capability-building vectors:

1. Documentation Systems: Auto-generated architecture decision records and runbooks
2. Shadow PODs: Parallel operations with graduated responsibility shifts
3. Simulation Labs: Digital twin environments for stress testing transition readiness

A North American healthcare provider leveraging this approach achieved full operational autonomy within 14 months while maintaining 99.98% platform availability during transition.

E. Ethical AI Governance Integration

Responsible Technology Transitions

Grid Dynamics embeds AI ethics frameworks directly into BOT operational blueprints through:

1. Bias Auditing: Continuous monitoring of ML model fairness
2. Explainability Standards: Automated documentation of AI decision paths
3. Compliance Automation: Real-time regulatory change propagation

This proved critical in a financial services BOT engagement where Grid Dynamics implemented FedNow compliance controls across 137 AI/ML models without impacting transaction throughput.

Contrast With Traditional BOT Implementations

Differentiator	Conventional BOT Approach	Grid Dynamics BOT Model
Talent Strategy	Project-specific hiring	Ecosystem development
IP Management	Client-owned deliverables	Co-innovation partnerships
Risk Allocation	Fixed-price transfers	Performance-linked models
Knowledge Transfer	Documentation-heavy	Experiential learning systems
Ethical Considerations	Post-hoc compliance	Built-in governance frameworks
Commercial Alignment	Cost-focused	Value-creation sharing

Implementation Considerations for Enterprises

Organizations evaluating Grid Dynamics' BOT offering should assess:

1. Strategic Alignment: 3–5-year technology roadmap compatibility
2. Organizational Readiness: Change management capacity for co-creation models
3. Ecosystem Synergies: Existing partnerships with cloud providers and ISVs
4. Governance Maturity: Ability to operationalize shared control structures
5. Ethical Imperatives: Regulatory landscape for AI/ML implementations

The model particularly benefits enterprises facing:

• Legacy modernization at scale
• Regulatory-intensive industries
• Rapid international expansion needs
• AI/ML adoption at enterprise scale

The Evolution of BOT Frameworks

Grid Dynamics has reengineered the traditional BOT model into a strategic capability-building platform that addresses modern digital transformation challenges. By integrating co-innovation principles, ethical AI governance, and risk-aware commercial models, the company enables enterprises to not just transfer operations but institutionalize continuous innovation capacities. This approach reflects the evolving needs of digital businesses where technology excellence must be coupled with organizational learning and ethical responsibility – requirements that conventional BOT implementations increasingly fail to address comprehensively

Question: Always a hot topic in the area of Composable Commerce is the optimal number of providers to get to a truly "best of breed" experience - when working with clients how do you challenge what they might consider "best of breed" but really is not the right answer for them? 

Answer: Typically, we suggest clients and prospects start with understanding the options available in the marketplace by reviewing trusted third-party analysts like Gartner, Forrester, etc. This can help identify “best of breed” but may also leave out high-quality products that are new and strong performers. 

For organizations who want to focus on being the best in their industry, they need to ask how the tech products they buy support that? Will they enable their organization to deliver a quality Customer Experience or will they get bogged down in technical debt and pay for more features than they will ever use?

At Grid Dynamics, we attempt to balance the views of the analysts against bleeding-edge entrants by being technology agnostic and mapping the business and technical requirements to the best solution for the client. We attempt to follow client-specific guidelines, e.g., preferred hyperscaler, to “shortlist” various platforms. 

Question: Okay, another hot topic is private vs. public cloud - knowing that Grid Dynamics does a lot of Cloud modernization, do you have general guidelines of when companies should consider public (SaaS) vs. private (PaaS) cloud options? 

Answer: This question is broad and varies by industry and expected outcomes. I am generalizing here for the purpose of focusing on selecting an Independent Software Vendor (ISV).

For most companies, the cloud is no longer just a buzzword—it is the backbone of scalable, secure, and innovative software delivery. But as the industry moves beyond “if” and “when” to “how,” the debate between public (SaaS) and private (PaaS) cloud options becomes more important than ever. So, how should ISVs chart the right path?

Breaking down the decision, focusing on what matters most for Enterprises selecting an ISV in today’s fast-evolving market.

The Case for Public Cloud (SaaS): Agility, Reach, and Cost Control

Public cloud solutions, typically delivered as Software-as-a-Service (SaaS), offer ISVs a compelling mix of benefits:

1. Rapid Deployment & Global Scale: Launch new features and reach customers worldwide without the burden of managing physical infrastructure. Public clouds provide instant scalability, allowing you to respond to market demands in real time.
2. Cost Efficiency: The pay-as-you-go model means you only pay for what you use, eliminating heavy upfront investments and enabling predictable operational expenses.
3. Focus on Innovation: Offload infrastructure management to the cloud provider, freeing your teams to focus on product development and customer value.
4. Continuous Updates: Public cloud platforms roll out security patches and feature upgrades automatically, keeping your solutions current and secure.

Best fit:
Organizations building cloud-native applications, targeting rapid growth, or serving a broad, geographically diverse customer base.

The Case for Private Cloud (PaaS): Control, Customization, and Compliance

Private cloud, often delivered as Platform-as-a-Service (PaaS), is all about control:

1. Enhanced Security & Compliance: Dedicated infrastructure means tighter control over data residency, access, and compliance-crucial for Enterprises serving regulated industries or handling sensitive customer data.
2. Customization: Private clouds can be tailored to unique technical or business requirements, supporting legacy integrations or specialized workflows.
3. Predictable Performance: With dedicated resources, Enterprises can ensure consistent application performance even during peak usage.

Best fit:
Companies with stringent regulatory requirements, complex legacy systems, or customers demanding custom deployments.

Hybrid Cloud: The Pragmatic Bridge

Most enterprise organizations don’t fit neatly into a single model. That’s why many deploy hybrid cloud strategies across homegrown and purchased applications. This methodology is gaining ground for the following reasons:

• Seamless Transition: Hybrid approaches let companies modernize at their own pace-migrating core services to the cloud while maintaining on-premises or private cloud components for sensitive workloads.
• Customer Choice: Serve both cloud-ready and on-premises customers, expanding your addressable market without forcing a “one-size-fits-all” solution.
• Risk Mitigation: Gradually refactor or rearchitect applications, minimizing disruption and supporting incremental modernization.

Practical guidelines for selecting ISVs and a cloud strategy

1. Assess Your Application Portfolio:
Identify which applications are cloud-ready, which require refactoring, and which should remain on-premises for now.
2. Understand Regulatory Requirements:
Some customers' applications can be deployed as SaaS for speed and convenience; others may require private deployments for compliance. A hybrid approach can help you serve both segments.
3. Prioritize Security and Compliance:
If you operate in regulated sectors, private or hybrid clouds may be essential to meet your requirements.
4. Plan for Incremental Modernization (sometimes poorly called the “strangulation approach”):
Modernize in stages—start with low-risk workloads, then gradually migrate or refactor critical applications, leveraging cloud-native features as you go.
5. Build for Flexibility:
Architect your solutions to support both public and private cloud deployments, ensuring you can adapt as market and regulatory needs evolve.

The Determining Factor(s)

The choice between public and private cloud isn’t binary - it’s strategic. Public cloud delivers speed and scale, private cloud offers control and compliance, and hybrid models let you balance both as you modernize. The most successful organizations are those who treat cloud not as a destination, but as a journey-one that’s tailored to their customers, their products, and their future ambitions.

Ready to modernize?
Start with a clear-eyed assessment, embrace flexibility, and remember: in the cloud era, your ability to adapt is your greatest competitive advantage.

Question: Alright last question - what's the #1 reason a company should consider Grid Dynamics vs. other options among enterprise-level system integrators? 

Answer: The single most compelling reason to choose Grid Dynamics over the rest?

It’s Not Just About Technology - It’s About Co-Innovation at Speed

While many SI’s can “lift and shift” your legacy systems or implement off-the-shelf solutions, Grid Dynamics brings something fundamentally different to the table—a relentless focus on rapid, co-innovative problem-solving that turns your biggest challenges into your biggest competitive advantages.

What sets us apart:

• Co-Innovation, Not Just Integration:
Grid Dynamics doesn’t just plug in technology. We embed our teams with our clients, working side-by-side to invent, iterate, and accelerate. We’re not satisfied with “good enough.” We push for breakthroughs that transform the business model, not just the IT stack.
• Speed Without Sacrificing Substance:
In today’s market, agility is everything. Grid Dynamics has a proven track record of delivering complex, enterprise-scale solutions in record time-without cutting corners. Our global talent network and proprietary accelerators mean clients see value in months, not years.
• Next-Gen Tech, Real-World Impact:
AI, cloud-native, data engineering. Grid Dynamics doesn’t just talk about these—we operationalize them. Our teams are at the forefront of emerging tech, but always with a laser focus on solving real business problems and driving measurable outcomes
• Partnership, Not Just Service:
With Grid Dynamics, clients don’t get a vendor - they get a partner invested in long-term success. Our collaborative approach means client teams learn and grow alongside ours, building capabilities that last well beyond any single project.

The Bottom Line

The #1 reason to choose Grid Dynamics?
We turn digital transformation into a living, breathing engine of co-innovation with a whatever-it-takes approach to generate tangible business value at the pace of your ambition, not the pace of traditional IT.

If you want a partner who challenges the status quo, accelerates your vision, and helps you build the future, not just catch up to it, Grid Dynamics is the SI to hire.

Curious about real-world examples of Grid Dynamics’ co-innovation in action? Request our case studies!