Sponsored by:
A new IDC White Paper sponsored by Microsoft, "Microsoft Partners: Driving Economic Value and AI Maturity,” provides valuable insights into how AI drives economic value for Microsoft partners and delivers greater levels of growth and profitability.
AI is a transformational technology that leads partners to expanded revenue opportunities. Many partners lack clarity on how it can increase their Microsoft-related revenue and profit.
To help Azure partners understand the economic impact of AI, Microsoft commissioned a global study with IDC. The research is titled, "Microsoft Partners: Driving Economic Value and AI Maturity," and shows the revenue multiplier for partners when they sell their own services and software together with Microsoft products.
Get More Value
The study establishes that Microsoft partners will realize more value when they offer added software and services. For every $1 of Microsoft revenue, service-led partners generate $8.45 and software-led partners generate $10.93. Other factors can influence the partner’s multiplier, such as the customer’s sophistication and long-term relationships that may enhance the multiplier over time.
Boost Revenue, Margin Growth
The total market opportunity for AI is massive and spending is expected to grow 31 percent from 2022 to 2027. For the same period, GenAI is forecasted to grow 86 percent—13 times greater the growth rate of the overall IT spending.
Even more importantly, the research shows that partners generating one-quarter or more of their Microsoft-related revenue from AI can expect a much higher revenue growth (46%) and a higher gross margin (41%) than other AI starter partners. The impact of AI on partner profitability is having immediate impact to the top line and also changing business models further along the services line.
Partners engaged with Microsoft generate a high average ratio of revenue from their own services as a percentage of their total revenue. When the services opportunities that are being developed around AI are included, partners can provide broader and expanded services to customers and create new and deeper solutions.
Realize Faster Time to Value
By adopting AI and integrating Azure's AI capabilities into their software offerings, partners can unlock new revenue streams, enhance customer value, and differentiate themselves in the market. Embrace the power of AI and elevate your Microsoft Azure partnership to new heights.
To learn more, download the IDC White Paper (doc #US52483124, September 2024) and get valuable strategies and actionable recommendations on how you can enhance your AI capabilities, boost revenue growth and drive customer success.