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Thursday, January 23, 2025

IDC research on associate profitability with Microsoft AI


Prior to now 12 months we skilled vital transformation, pushed by AI, impacting the world and the tech trade in dynamic methods. In almost each dialog I’ve with companions, we talk about how AI is delivering quicker time to worth for patrons throughout almost each trade and opening new potentialities and big financial potential. Actually, IDC tasks that generative AI will add almost $10 trillion to world GDP over the subsequent decade.1

As we glance towards Microsoft’s fiftieth 12 months, 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 providers, 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 knowledge and growing AI options that ship safe, transformative experiences that had been beforehand past our creativeness.

To assist companions higher perceive the worth AI can unlock, Microsoft commissioned a world research by way of IDC, titled “Microsoft Companions: Driving Financial Worth and AI Maturity.” The objective is to supply clear insights into how AI drives financial impression for our companions. For this research, IDC surveyed over 600 companions world wide. The research focuses on the financial worth companions understand by way of their collaboration with Microsoft and our know-how—notably with AI. Key findings from the research present:

  • Companion multiplier: For each $1 of Microsoft income, companions who present providers 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 providers, and AI is additional elevating this. Primarily based on IDC’s Microsoft Companion Financial Worth Survey, 62% of complete associate income comes from providers.
  • 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 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, Might 2024.

 

Microsoft associate income multiplier

IDC studies that companions targeted on offering providers and software program have a better 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, Might 2024.

 

Bain & Firm is a world administration consulting agency that helps companies drive transformative change, specializing in technique, operations, and know-how. With a fame for delivering actionable insights and sustainable outcomes, Bain collaborates with organizations throughout varied industries to co-create options that tackle prospects’ greatest issues and establish sources of worth from knowledge and AI. These transformations create alternative and drive buyer engagement and providers 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 robust relationship with Microsoft. Particularly with the AI wave, Microsoft is a key associate that a lot of our purchasers need 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), Trendy Work, and Safety. CCO has 160 prospects who’re actively engaged in AI, and so they 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 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, reworking and enhancing how we work and dwell. Clients and companions worldwide are leaning on Microsoft’s management in knowledge, 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 enterprise can take within the coming 12 months.

 

Further sources:


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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