Microsoft study reveals channel partners selling cloud solutions experience nearly double gross profits and faster growth
New study conducted by research firm highlights hybrid cloud profitability opportunities for partners.
HOUSTON, July 8, 2013 /PRNewswire/ -- Partners with more than 50 percent of their revenue related to the cloud have been benefiting from higher gross profit, more new customers, increased revenue per employee and faster overall business growth, according to a new IDC study, sponsored by Microsoft Corp., released today at the company's annual partner conference.
The study underscored the transformation taking place in the business world as more organizations of all sizes move their technology infrastructures to the cloud. In fact, according to the findings, cloud-oriented partners, defined as those that generate more than 50 percent of their revenue from the cloud, grow at double the rate, accrue new customers more than two times faster and generate 30 percent more revenue per employee compared with noncloud-oriented partners.
"Cloud alone hasn't caused these impressive numbers, though that is absolutely part of it; top-performing partners were visionaries that took on cloud technologies before their peers," said Darren Bibby, program vice president of Channels and Alliances Research, IDC. "We're at the point in the industry's overall cloud transition where partners that don't move some of their business to the cloud likely won't survive. And some partners that are getting ready to sell their business or retire may be OK with that. Most won't be."
Study reveals customers prefer single cloud service provider
IDC research also revealed customer buying preferences that highlight the importance of a comprehensive cloud vendor and the ability to offer various deployment options:
- Sixty-three percent of customers expect to have a single cloud service provider to meet their needs.
- Sixty-seven percent expect to purchase a wide variety of cloud services from a single vendor.
- Seventy-four percent expect their cloud service provider to be able to move a cloud offering back on-premises if needed.
"IDC's data reveals that businesses prefer to buy end-to-end IT solutions from a single cloud vendor and want to work with a company they have an established relationship with. With Office 365 now on a $1 billion annual revenue run rate and more than 250,000 customers using Windows Azure, with thousands more added every week, our partners are in a prime position to support this," said Jon Roskill, corporate vice president of the Worldwide Partner Group, Microsoft. "This research validates our belief that the most successful partners are the ones that offer a hybrid approach to IT. Microsoft is the only vendor equipped to help partners offer their customers a suite of on-premises and cloud solutions in both public and private cloud environments. By offering a hybrid approach, it better addresses customer needs and, in turn, helps our partners make more money."
The full study and more details, such as a related infographic, can be found at
About the Microsoft Worldwide Partner Conference
The Microsoft Worldwide Partner Conference (WPC) is a four-day event taking place July 8–11 in Houston that celebrates the accomplishments of the company's global partners and gives a preview of the coming year for Microsoft. This year's event attracted more than 14,000 attendees from 150 countries around the world.
Clips of executive keynote speeches and details on additional news at WPC are available at http://www.digitalwpc.com or the Microsoft Partner Network Virtual Newsroom at http://www.microsoft.com/en-us/news/presskits/partnernetwork.
Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
SOURCE Microsoft Corp.
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