Microsoft’s Cloud Channel Begins to Mature
A study finds that Microsoft partners are generating revenue across multiple services, especially in cloud infrastructure management and cloud app deployments.
Cloud infrastructure and management: 78%,
Cloud application development: 53%,
Mobility and security: 46%,
Data platform and analytics: 43%
Just over half of these practices are less than two years old. Nearly all offer Azure, and about 75% offer Office 365. Fewer than half offer Enterprise Mobility + Security or CRM Online.
An average of 20% of overall revenue is driven by cloud-based products and services. Value-added services—including Project Services, Managed Services & Packaged Software—represent 74% of partner revenue in the SMB space and 82% in the enterprise.
Two-thirds of the partners surveyed said less than one year was required for their company to reach profitability on new practices. About a third cited one to two years or longer.
Keeping employees up to speed on latest tech: 32%,
Generating leads: 31%,
Overcoming customer objections: 27%
In the U.S., hiring a cloud architect costs an average of $125,000; sales and marketing professionals and developers are paid about $100,000 each.
Partners surveyed reported that the majority of their leads are generated by their own efforts. Microsoft is credited with providing fewer than 10% of their leads.
Virtual machines and networking, followed by SQL Server and Microsoft Intune mobile device management, are cited as the top services layered on top of Microsoft Azure.
Backup and storage management, followed by virtual machine management, are the top two services partners add on top of Azure.
The median project-based revenue generated per cloud infrastructure engagement is $150,000. The median revenues for managed services and other forms of intellectual property services are $100,000 and $50,000, respectively.
The median revenue partners generate per cloud application engagement is $200,000. The median revenue for managed services and other forms of intellectual property services is $100,000 each.
The median revenue generated per data platform and analytics engagement is $55,000. The median revenues for managed services and other forms of intellectual property services are $30,000 and $14,500, respectively.
The median revenue generated per mobile and security project engagement is $50,000. The median revenues for managed services and other forms of intellectual property services are $50,000 and $20,000, respectively.