Microsoft Partners: Driving Economic Value and AI Maturity

Microsoft Partners: Driving Economic Value and AI Maturity

In the past year we experienced significant transformation, driven by AI, impacting the world and the tech industry in dynamic ways. In nearly every conversation I have with partners, we discuss how AI is delivering faster time to value for customers across nearly every industry and opening new possibilities and huge economic potential. In fact, IDC projects that generative AI will add nearly $10 trillion to global GDP over the next decade.

  

As we look toward Microsoft’s 50th year, we remain committed to empowering every person and every organization on the planet to achieve more. We are proud to lead AI transformation and deliver a trustworthy AI platform for customers and partners to enhance their services, increase productivity, and drive business success. Microsoft Copilot, the Copilot stack, and Copilot+ PCs are pioneering the way in alignment with our commitment to security. Together, these tools provide the most sophisticated platform for leveraging data and developing AI solutions that deliver secure, transformative experiences that were previously beyond our imagination.

  

To help partners better understand the value AI can unlock, Microsoft commissioned a global study through IDC, titled "Microsoft Partners: Driving Economic Value and AI Maturity." The goal is to provide clear insights into how AI drives economic impact for our partners. For this study, IDC surveyed over 600 partners around the world. The study focuses on the economic value partners realize through their collaboration with Microsoft and our technology—particularly with AI. Key findings from the study show:

  • Partner multiplier: For every $1 of Microsoft revenue, partners who provide services generate $8.45 and partners who develop software generate $10.93.
  • AI growth: AI is a huge growth opportunity, with GenAI forecasted to grow 86% (2022–2027)—13 times the overall IT market growth.
  • Services partners’ value: Partners engaged with Microsoft generate a high average ratio of revenue from their own services, and AI is further elevating this. Based on IDC's Microsoft Partner Economic Value Survey, 62% of total partner revenue comes from services.
  • Software partners’ value: Software development partners are tapping into customer demand for AI by integrating Microsoft AI capabilities into their own software and creating new AI applications.
  • Microsoft benefits as a boon to partner businesses: The Microsoft AI Cloud Partner Program benefits span a broad set of valued attributes for partners, with an emphasis on elevating partner engagement with AI.

Microsoft partner revenue multiplier

IDC reports that partners focused on providing services and software have a higher multiplier, and AI is contributing to that trend. The study also illustrates that Microsoft partners are bullish on AI, with the majority stating that AI will increase their Microsoft-related revenue and profit.

 

Bain & Company is a global management consulting firm that helps businesses drive transformative change, focusing on strategy, operations, and technology. With a reputation for delivering actionable insights and sustainable results, Bain collaborates with organizations across various industries to co-create solutions that address customers’ biggest problems and identify sources of value from data and AI. These transformations create opportunity and drive customer engagement and services in different stages of the AI journey.

 

“We wanted to partner with a leader and saw quite clearly that it was a priority for us to build a deep and strong relationship with Microsoft. Especially with the AI wave, Microsoft is a key partner that many of our clients are looking to work with in transforming their businesses.”

—Roy Singh, Partner, Bain & Company

 

 

Partner revenue growth and profitability in the age of AI

Convergent Computing (CCO) is a consulting business based in California with 100 employees, focusing on Data & AI (Azure), Modern Work, and Security. CCO has 160 customers who are actively engaged in AI, and they view AI as an accelerator.

"AI is not only contributing to the top line, but it's also increased the funnel of what we've been doing for the last 10 years because I have more migration and security jobs because AI drove them."

—Rand Morimoto, President, Convergent Computing

 

AI leads to growth now and in the future

Organizations across a variety of industries are evolving into tech companies, recognizing the business value that generative AI brings. A wave of innovation has accelerated AI adoption, transforming and enhancing how we work and live. Customers and partners worldwide are leaning on Microsoft’s leadership in data, cloud, security, and AI innovation. The impact of AI on growth is evident from the experience Microsoft partners report in the new IDC study.

Wherever you are in your cloud and AI transformation journey, Microsoft can help you accelerate. Microsoft is committed to the success of our partners.

Explore the complete study to identify the most impactful actions your business can take in the coming year.

 

 

Additional resources:

 

Source: IDC, sponsored by Microsoft, “Microsoft Partners: Driving Economic Value and AI Maturity,” IDC #US52483124, September 2024.

1 IDC Infographic, sponsored by Microsoft, "The Business Opportunity of AI," IDC #US51315823, November 2023.

 

Back to blog