IDC research on associate profitability with Microsoft AI

Up to now yr we skilled vital 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 prospects and big financial potential. In truth, IDC initiatives that generative AI will add practically $10 trillion to international GDP over the subsequent decade.1

As we glance towards Microsoft’s fiftieth yr, we stay dedicated to empowering each particular person 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 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 subtle 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 research via IDC, titled “Microsoft Companions: Driving Financial Worth and AI Maturity.” The purpose is to supply clear insights into how AI drives financial impression for our companions. For this research, IDC surveyed over 600 companions all over the world. The research focuses on the financial worth companions understand via their collaboration with Microsoft and our expertise—notably 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 progress: AI is a large progress alternative, with GenAI forecasted to develop 86% (2022–2027)—13 occasions 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 complete associate 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 purposes.
  • Microsoft advantages as a boon to associate companies: The Microsoft AI Cloud Companion Program advantages span a broad set of valued attributes for companions, with an emphasis on elevating associate 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, Could 2024.

 

Microsoft associate income multiplier

IDC studies that companions centered on offering companies and software program have the next multiplier, and AI is contributing to that development. 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, Could 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 numerous industries to co-create options that deal with prospects’ largest issues and establish sources of worth from information and AI. These transformations create alternative and drive buyer engagement and companies in several phases of the AI journey.

“We wished to associate 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 associate that lots of our purchasers wish to work with in reworking their companies.”

—Roy Singh, Companion, Bain & Firm

 

Companion income progress 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 just 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 progress now and sooner or later

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

Wherever you might be in your cloud and AI transformation journey, Microsoft will help you speed up. Microsoft is dedicated to the success of our companions.

Discover the whole research to establish essentially the most impactful actions your small business 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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