Cloud Computing / How Microsoft Sees Partners' Roles in the Cloud

How Microsoft Sees Partners' Roles in the Cloud

By Michael Vizard | Posted 2016-07-18

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How Microsoft Sees Partners' Roles in the Cloud

Microsoft is bringing its partners deeper into the cloud fold with a slew of new Azure and Office 365 offerings and programs.
Microsoft's Top Six Priorities for 2016

The tech giant's top priorities for 2016 are driving digital transformation, accelerating cloud adoption, propelling Windows 10 enterprise deployments, generating SQL Server 2016 growth, driving independent software vendor and systems integrator momentum, and making experiences come to life through hardware solutions.
Size of the Microsoft Cloud Channel

Some 17,000 partners participate in the Microsoft Cloud Service Partner program. Microsoft partners helped sell more than 3 million cloud seats in 2015.
Microsoft's Best Cloud Partners

Microsoft's best cloud partners generate $5.87 for every $1 of Microsoft cloud services sold. Microsoft now has 3,500 employees dedicated to the channel.
Microsoft Cloud Margins

Microsoft Azure partners have seen a twofold increase in revenue. Gross margins on Azure for partners are 65%. Margins are 40% higher than peers less invested in the cloud. Microsoft Azure margins are 19% higher than for solutions on rival cloud platforms.
Microsoft 365 Momentum

There are 70 million users of Microsoft Office 365, a 55% growth rate year-over-year. The next major update will provide built-in security, such as advanced threat protection, advanced e-discovery and Customer Lockbox capability.
Windows 10 Momentum

In advance of the Aug. 2, 2016, first anniversary of the launch of Windows 10, Microsoft plans to add support for Windows Hello visual authentication, Credential Guard tools, data mining tools, improved pen functionality and advanced threat protection tools.
Microsoft as a Managed Service

Microsoft is also preparing a new Microsoft Surface-as-a-Service offering as a managed service. The company is also making Operations Manager Suite and Enterprise Mobility Suite available as a service to partners.
Microsoft Lead-Gen Engine

Microsoft delivers more than 1 million referrals to its best partners a year. The company plans to unify its and partners' online marketplaces via a single management console that will make it possible to centrally populate digital profiles.
Focus on ISVs

Microsoft plans to allow its gold independent software vendor partners to go to market using the Windows logo. Microsoft plans to improve cooperation between its ISVs and traditional partners to accelerate cloud service adoption.
Microsoft Education and Training

The new Microsoft Professional Degree (MPD) program credits individuals for their expertise, regardless of how they gained that expertise. The company has created an Open edX on Azure platform to help partners establish a profit-generating learning-as-a-service business. The first MPD program is focused on data science.
Making the Partnering Process Simpler

Microsoft has simplified the paperwork for the application certification process to enable more partners to become certified and take advantage of program resources.
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Microsoft is arguably the house that the channel built. Yet, with the shift to the cloud, many channel partners have been left behind. At the Microsoft Worldwide Partners Conference (WPC), the company sought to rectify that with a slew of new Azure and Office 365 offerings and programs designed to reward partners more for adding value on top of Microsoft cloud platforms and services. With 90 percent of the tech giant's revenue coming via the channel, motivating those partners to sell cloud services is critical to Microsoft's efforts to combat rivals, such as Amazon Web Services (AWS). The challenge Microsoft faces it that only a small percentage of its partners have a business model in place that is based primarily on cloud services. The rest are in some state of transition. That's not necessarily a bad thing from Microsoft's perspective. Hybrid cloud solutions that span on-premise and Azure deployments substantially differentiate Microsoft from AWS. In the meantime, solution providers would be well advised to tap into a rapidly expanding array of Microsoft cloud services that are continuously being optimized for the channel.