Grab your share of USD1.7 trillion
Your customers have begun a transformation. One that promises disruptive organizational change along with new processes, business models, customer experiences, and operational efficiencies.
Are you ready for the change? Can you help them re-architect their operations with cloud technologies such as big data, analytics, or social? If not, you’re missing out on the unprecedented market opportunities and profitability for digital transformation specialists.
International Data Corporation (IDC) estimates the value of digital transformation is USD20 trillion—that’s more than 20 percent of global gross domestic product! By the end of 2019, IDC expects enterprises worldwide will spend USD1.7 trillion on tech and digital initiatives, and partners will play a dominant role in helping businesses transform.
What does this mean for Microsoft partners?
Based on IDC’s estimates, partner opportunity will double to more than USD2 billion by 2022. That means for every US dollar of Microsoft revenue, our partners generate an additional $9.64! But in order to realize these projections, partners need to transform their businesses and align strategy to the market opportunity.
To help partners understand the new and unprecedented market opportunities, we’ve utilized IDC to create the Digital Transformation Series e-books.
Your own path to profitability and growth depends on where you and your customers are on the digital transformation journey, along with your digital technologies and transformation services expertise. In the first e-book, Digital Transformation Market Opportunities,, we describe how your transformation should align with your customers’ needs at every stage. The key is to engage in the right conversations with business leaders and focus on their priorities and aspirations.
"For every US dollar of revenue that Microsoft generates, partners generate an additional $9.64"
As your journey evolves, you’ll help customers carry out their own. You’ll build managed services to get customers to the cloud. You’ll perform hyper-agile development to build software that drives further value.
Partners create value across every customer digital requirement by offering project or managed services and IP. On average, 64 percent of partner revenue is generated from non-resale activities, and those with recurring revenue can double the valuation of recurring business.
The chart below shows where partners focus and what percentage of revenue comes from activities in the non-resale focus areas.
The market is evolving fast. By 2020, IDC expects 60 percent of enterprises will be implementing a digital platform strategy. In fact, transformation is becoming an executive mandate. CEOs are calling on leadership to have business models deliver new customer experiences. To do it, they must facilitate digital innovation, integration, and transformation. This is a huge, complex, and ongoing reorientation for many customers, which creates long-term opportunity for digitally sophisticated partners.
To fully tap this potential, every partner needs to leverage tech and business innovations, and help customers set strategy. Extending value to our platforms and solutions is integral to customers driving forward as digital businesses.
By focusing on high-value cloud solutions, you can utilize technological advances to create transformative solutions. Cloud access to data has created new security and compliance requirements around the General Data Protection Regulation (GDPR), translating into opportunity for digitally skilled partners.
IDC has quantified partner opportunities for technologies as follows:
- AI: IDC sees the compound annual growth rate for AI spending near 50 percent in the US from now until 2021.
- Block chain: IDC predicts such distributed ledger solutions will see a five-year compound annual growth rate of 81.2 percent and total spending of USD9.7 billion in 2021.
- GDPR: IDC sees a USD3.5 billion worldwide market opportunity by 2019.
You have a huge opportunity to expand your practice’s expertise and engage customers about disruptive change. Position yourself now for success in an underserved, high-demand market. Follow the partner view of this opportunity by downloading the first Digital Transformation Series e-book focusing on business attributes needed for success.
We’ll release new e-books monthly that showcase a different pillar of transformation. In the second e-book, Engaging Customers, you’ll learn how partners are succeeding with data-driven customer insights.
In e-book three, Empowering Employees, you’ll see how partners recruit and build skills needed for a modern work environment. The fourth e-book, Optimizing Operations, focuses on partners becoming more adaptive, agile, and efficient. And e-book five, Transforming Products, shows how partners capitalize on their own products and .
Well written! Great insights!
The ratio between spending to Microsoft and spending to partners has actually increased which makes the business case to partner with Microsoft even more compelling!
I'm talking a lot of AI being the greatest opportunity but I'm happy that also GDPR is mentioned. GDPR opportunities are both for Professional Services Providers and also for Managed Services Providers. In order to build longterm profitability, Managed Services is really a great opportunity as it builds recurring revenue that is highly appreciated by investors - and that ban conveniently be combined with services around Cybersecurity.