Thursday, November 14, 2024

IDC research on accomplice 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 almost each dialog I’ve with companions, we focus on how AI is delivering sooner time to worth for patrons throughout almost each business and opening new prospects and large financial potential. Actually, IDC tasks that generative AI will add almost $10 trillion to world 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 guide AI transformation and ship a reliable AI platform for patrons and companions to boost their companies, improve productiveness, and drive enterprise success. Microsoft Copilot, the Copilot stack, and Copilot+ PCs are pioneering the best way in alignment with our dedication to safety. Collectively, these instruments present essentially the most refined platform for leveraging knowledge 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 research via IDC, titled “Microsoft Companions: Driving Financial Worth and AI Maturity.” The aim is to offer clear insights into how AI drives financial affect for our companions. For this research, IDC surveyed over 600 companions all over the world. The research focuses on the financial worth companions notice via their collaboration with Microsoft and our expertise—significantly with AI. Key findings from the research 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 development: AI is a big development alternative, with GenAI forecasted to develop 86% (2022–2027)—13 occasions the general IT market development.
  • Providers 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 accomplice income comes from companies.
  • Software program companions’ worth: Software program growth companions are tapping into buyer demand for AI by integrating Microsoft AI capabilities into their very own software program and creating new AI functions.
  • Microsoft advantages as a boon to accomplice companies: The Microsoft AI Cloud Companion Program advantages span a broad set of valued attributes for companions, with an emphasis on elevating accomplice 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 accomplice income multiplier

IDC studies that companions targeted on offering companies and software program have the next multiplier, and AI is contributing to that pattern. The research 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 popularity for delivering actionable insights and sustainable outcomes, Bain collaborates with organizations throughout varied industries to co-create options that tackle prospects’ largest issues and establish sources of worth from knowledge and AI. These transformations create alternative and drive buyer engagement and companies in several phases of the AI journey.

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

—Roy Singh, Companion, Bain & Firm

 

Companion income development and profitability within the age of AI

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

“AI isn’t 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 development now and sooner or later

Organizations throughout a wide range of industries are evolving into tech firms, recognizing the enterprise worth that generative AI brings. A wave of innovation has accelerated AI adoption, remodeling and enhancing how we work and stay. Clients and companions worldwide are leaning on Microsoft’s management in knowledge, cloud, safety, and AI innovation. The affect of AI on development is obvious from the expertise Microsoft companions report within the new IDC research.

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.

Discover the whole research to establish essentially the most impactful actions what you are promoting can take within the coming yr.

 

Extra assets:


Supply: IDC, sponsored by Microsoft, “Microsoft Companions: Driving Financial Worth 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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