IDC examine on companion profitability with Microsoft AI

IDC examine on companion profitability with Microsoft AI
IDC examine on companion profitability with Microsoft AI


Prior to now yr we skilled important transformation, pushed by AI, impacting the world and the tech business in dynamic methods. In practically each dialog I’ve with companions, we talk about how AI is delivering quicker time to worth for purchasers throughout practically each business and opening new potentialities and large financial potential. In actual fact, IDC initiatives that generative AI will add practically $10 trillion to international GDP over the following decade.1

As we glance towards Microsoft’s fiftieth yr, we stay dedicated to empowering each individual and each group on the planet to attain extra. We’re proud to steer AI transformation and ship a reliable AI platform for purchasers and companions to reinforce their companies, improve productiveness, and drive enterprise success. Microsoft Copilot, the Copilot stack, and Copilot+ PCs are pioneering the way in which in alignment with our dedication to safety. Collectively, these instruments present essentially the most refined platform for leveraging information and creating AI options that ship safe, transformative experiences that have been beforehand past our creativeness.

To assist companions higher perceive the worth AI can unlock, Microsoft commissioned a worldwide examine by way of IDC, titled “Microsoft Partners: Driving Economic Value and AI Maturity.” The objective is to supply clear insights into how AI drives financial affect for our companions. For this examine, IDC surveyed over 600 companions around the globe. The examine focuses on the financial worth companions understand by way of their collaboration with Microsoft and our expertise—significantly with AI. Key findings from the examine present:

  • Companion multiplier: For each $1 of Microsoft income, companions who present companies generate $8.45 and companions who develop software program generate $10.93.
  • AI progress: AI is a large progress alternative, with GenAI forecasted to develop 86% (2022–2027)—13 instances the general IT market progress.
  • Companies companions’ worth: Companions engaged with Microsoft generate a excessive common ratio of income from their very own companies, and AI is additional elevating this. Based mostly on IDC’s Microsoft Companion Financial Worth Survey, 62% of whole companion income comes from companies.
  • Software program companions’ worth: Software program improvement companions are tapping into buyer demand for AI by integrating Microsoft AI capabilities into their very own software program and creating new AI purposes.
  • Microsoft advantages as a boon to companion companies: The Microsoft AI Cloud Companion Program advantages span a broad set of valued attributes for companions, with an emphasis on elevating companion engagement with AI.

 

Infographic showing that, for every $1 of Microsoft revenue, services partners make $8.45 and software partners make $10.93.

n = 638; Supply: IDC Microsoft Companion Financial Worth Survey, IDC PEVI Mannequin, Might 2024.

 

Microsoft companion income multiplier

IDC stories that companions centered on offering companies and software program have a better multiplier, and AI is contributing to that development. The examine additionally illustrates that Microsoft companions are bullish on AI, with the bulk stating that AI will improve their Microsoft-related income and revenue.

 

Infographic showing that 81% of partners agree Microsoft AI will increase revenue, 71% of partners agree that Microsoft will increase profit, and partners expect 2024 Microsoft AI-related revenue growth of 39%.

n = 638; Supply: IDC Microsoft Companion Financial Worth Survey, Might 2024.

 

Bain & Firm is a worldwide administration consulting agency that helps companies drive transformative change, specializing in technique, operations, and expertise. With a status for delivering actionable insights and sustainable outcomes, Bain collaborates with organizations throughout varied industries to co-create options that deal with clients’ largest issues and establish sources of worth from information and AI. These transformations create alternative and drive buyer engagement and companies in numerous phases of the AI journey.

“We wished to companion with a pacesetter and noticed fairly clearly that it was a precedence for us to construct a deep and robust relationship with Microsoft. Particularly with the AI wave, Microsoft is a key companion that lots of our purchasers need to work with in remodeling their companies.”

—Roy Singh, Companion, Bain & Firm

 

Companion income progress and profitability within the age of AI

Convergent Computing (CCO) is a consulting enterprise primarily based in California with 100 staff, specializing in Knowledge & AI (Azure), Fashionable Work, and Safety. CCO has 160 clients who’re actively engaged in AI, they usually view AI as an accelerator.

“AI will not be solely contributing to the highest line, nevertheless it’s additionally elevated the funnel of what we have been doing for the final 10 years as a result of I’ve extra migration and safety jobs as a result of AI drove them.”

Rand Morimoto, President, Convergent Computing

 

AI results in progress now and sooner or later

Organizations throughout quite a lot of industries are evolving into tech corporations, recognizing the enterprise worth that generative AI brings. A wave of innovation has accelerated AI adoption, remodeling and enhancing how we work and dwell. Prospects and companions worldwide are leaning on Microsoft’s management in information, cloud, safety, and AI innovation. The affect of AI on progress is clear from the expertise Microsoft companions report within the new IDC examine.

Wherever you’re in your cloud and AI transformation journey, Microsoft may also help you speed up. Microsoft is dedicated to the success of our companions.

Explore the complete study to establish essentially the most impactful actions your enterprise can take within the coming yr.

 

Extra assets:


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

1 IDC Infographic, sponsored by Microsoft, “The Enterprise Alternative of AI,” IDC #US51315823, November 2023.

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