Microsoft says their partners earn nearly $10 for every $1 Microsoft takes

Microsoft is one of the most valuable companies in the world, but this is mainly because they are a foundational stone for an even larger IT industry.

Today Microsoft has revealed some numbers which show how they help their partners and resellers generate even more revenue when selling on Microsoft’s technology and services.

“We generate more than 95 percent of our business through our robust and constantly evolving partner ecosystem,” said Gavriella Schuster, corporate vice president at Microsoft. “Last fall, partners helped us exceed a $20 billion commercial cloud annualized revenue run rate goal we set just two years ago,” she stated.

In turn, Microsoft helped partners generate even more billions, with Microsoft claiming for each $1 of Microsoft revenue partners generated $9.65 extra revenue by selling additional products and services.

“In just six months with 500 partners, last year’s co-sell pilot generated $6bn in partner pipeline and more than $1bn in partner revenue. Project size was on average nearly six times larger, and partners closed deals nearly three times faster when we sold together. Since formally introducing our approach to co-sell at Inspire, more than 9,000 partners have become co-sell ready—a 543% increase since July—and that number continues to rise,” noted Schuster.

No wonder Microsoft has more than 68,000 cloud partners, a 33% increase year-on-year.

Microsoft sees AI as its next lucrative market, and want to bring their partners along with them.

“As Microsoft sellers deepen their relationships with partners through co-sell conversations, they want to build and expand their practices across the solution areas, especially artificial intelligence. By 2025, the anticipated market in the space is expected to reach nearly $60 billion, so it’s a greenfield opportunity—and partners are already creating customer solutions in new and unexpected ways,” Microsoft noted.

Via ComputerWeekly

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