Microsoft ecosystem value: new data reveals partner paths to profitability and growth

Microsoft

Written by Nicole Dezen, Chief Partner Officer and Corporate Vice President, Global Partner Solutions

 

Today, nearly every aspect of business and society is facing some type of disruption, and, as a result, it is more important than ever to accelerate innovation. At Microsoft, we find ourselves at the center of this transformation with our partners. Earlier this year at Microsoft Inspire, we shared that we are committed to working with partners to help our customers address today’s digital imperatives by infusing technology and cloud-based solutions into every business process. Every day, more than 400,000 Microsoft partner organizations make small businesses more productive, nonprofits more effective, multinationals more competitive, governments more efficient, and much more.

 

As customers undergo digital transformation, we must continue to co-innovate and jointly go to market with tailored solutions. To better understand the value of Microsoft to our partner ecosystem, we commissioned a study with IDC that examined key drivers of partner profitability and growth. This eBook is the result of in-depth research with our partners, including a survey of 765 Microsoft partners globally and interviews with 12 Microsoft partners. This research found that partners realizing the greatest economic benefits with Microsoft are those who have invested the most in their Microsoft relationship, offer their own intellectual property (IP), and take advantage of co-selling opportunities.

 

“We believe in the better-together story. PROS and Microsoft deliver a better-together, ‘one plus one equals something greater than three’ approach for our joint end customers.” —John Connolly, Global Vice President, Alliances and Partners, PROS

Partner economic value creation

 

When segmenting the Microsoft partner ecosystem by partner revenue and the activities that partners perform to drive that revenue, the surveyed partners are in three categories: resale-led, services-led and software-led. It is important to observe that the different partner activities have different levels of economic value in their relative relationship with Microsoft. And, since partners tend to have a unique revenue mix from these activities, every partner may, as a result, have different economic outcomes.

 

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