Brokers must work closely with cloud providers, while also _________ their services to appeal to customers.
To distinguish is to notice or understand the difference between two things. It stresses that two things are not just different from each other, but that they have recognizable differences which make them unique and of different kinds.
To differentiate is to show or find the difference between things which are compared. It simply means that they are not the same, but doesn’t qualify them as being unique and possibly not related.
Distinguish means unique, whereas differentiate means difference.
Example: Dave can’t differentiate between the two sofas. Neither has a distinguishing mark that tells them apart.