Microsoft partners earn $6.70 for each the company brings to Western Europe – News Center

• Microsoft, together with IDC, presented the study “Opportunities of the Microsoft partner ecosystem”, which provides an up-to-date vision of the Spanish technology market and offers the channel new ways to increase its profitability.
• Reveals that by 2026 the size of the public cloud will double while the software category will grow twice as fast as Spanish customers prioritize such a solution.
• SaaS solutions will continue to be the most accepted solution in the market, representing 55% of the market in four years and an annual growth rate of 18%. PaaS will have the highest growth rates until 2026 and will rise rapidly at 34% per year by 2026.
• For every dollar the company brings in Western Europe, partners earn $6.70, exceeding the world average of $6.10. Those who develop their own software and services are those who provide the highest growth and profitability.

The rapid growth of cloud services is changing the technological landscape in Spain. By 2026, the size of the public cloud will doubleprojecting 23% growth per year[1] in key sectors One of the main results of this study is the local economy such as manufacturing, financial services and retail as customers turn to the cloud to support their digital transformation strategies. «Microsoft Partner Ecosystem Opportunities«[2], detailed by IDC for Microsoft With the aim of presenting an up-to-date vision of the technology market in 15 European countries so that the channel can find new opportunities and increase its profitability.

Digital transformation represents a huge opportunity for national companies and of course the channel. As the study points out, Tech market in Spain will grow by an average of 5% between 2021 and 2026. and category software As Spanish customers prioritize this type of solution, it will grow twice as fast – compounded annual growth of total spend is estimated to exceed 10%. To assist them, the channel needed to demonstrate its ability to respond quickly to customers’ growing needs. Antonio Budia, Director of Business Partners at Microsoft Spain, sign: “Technology continues to be the best solution for companies, as it is a deflationary element that can reduce costs in the medium and long term, in a time of rising inflation. We observe how customers who bet on this digital perseverance become customers with a better future projection. «.

In terms of spending, investment in technology is expected to continue to rise: In 2026, it will exceed 44.4 billion dollars annually, public cloud market will exceed 8 billion annually. A trend that the channel will capitalize on as customers seek support to adopt, manage and scale the right solutions.

Value solutions for partners

Microsoft’s partner ecosystem is diversifying to increase revenue by adopting a build your own services and recommend software approach. A third of the partners in Southern Europe are specialized in three main areas of activity: Sales, Service and Development. On average, the study prepared by IDC For every dollar the company brings in Western Europe, partners earn $6.70. a number exceeding The global average is $6.10.

However, earnings vary according to the activities carried out. European partners develop their own software and services to meet unique customer needs ensure the highest growth and profitability: on average they get $7.86 for each person who enters Microsoftthose who are dedicated to their work follow Services -$5.75- and distribution -$2.21-.

In this sense, Microsoft partners committed to developing proprietary solutions powered by the company’s technology achieve the highest gross margins and anticipate stronger revenue growth: they operate on gross margins. Between 26% and 32%, compared to 18% of resale partners based on their products. Moreover, European channel dedicated to software expects business to grow by 43% in 2022compared to 16% of those committed to services and 15% of those devoted to distribution.

Partners with a better relationship with Microsoft experience higher profitability and expect higher growth: Those who earn at least 75% of their total income from commercial activities with Microsoft they achieve an average margin of 30% and project 28% growth in 2022. By comparison, the average gross profit margin of partners with a lower share (1-25%) is 14%.

Microsoft partners in Europe in 2022 Achieved 20% revenue growth related to Microsoft businessa 2% more than in 2022. this Southern European partners The most optimistic in their forecasts are: 89% expect to increase their revenue; This was followed by partners from the Benelux and France with 88%; 87% from Scandinavian countries; 80% from the UK and Ireland; and 77% of the DACH network (Germany, Austria and Switzerland) expect growth.

Cloud verticalization will gain momentum

Microsoft research, Retail and manufacturing as the main users of the cloudwith compound annual growth rate 24% in four years. The industry is following them Healthwith 23% and public administrations, financial services and education with 22%. In response, the trend verticalization The adoption of the cloud will accelerate and for the channel to take advantage of this, Microsoft offers a variety of industry clouds: Cloud for Health, Cloud for Financial Services, Cloud for Production, Cloud for Retail, Cloud for Sustainability Y Cloud for Nonprofit.

By segments, SaaS will continue to be the most accepted in the market by representing 55% of this in four years, with an annual growth rate of 18%. However PaaS solutions They will be those with the highest growth rates for 2026. 34% per year until 2026driven by fundamental factors such as the growing need of companies to reduce Market time and increased enterprise agility along with the cost of application development.

Given this scenario, partners will help companies execute their digital strategy with a cloud-based approach. “At Microsoft, we offer a complete portfolio of infrastructure, platform and software capabilities and services, where our partners can build unique solutions to meet the key challenges of each of the industries in which their customers operate. We know that our combination of platform plus services provides distinct value and allows our partners to compete in a market that is as changing as the current market.“, Explain Antonio Budia.

Microsoft Cloud Partner Program

Microsoft has just introduced Microsoft Cloud Partner ProgramAn improvement in the certification program to help the channel face the challenges and opportunities of the current market. Microsoft focuses on the competition in six areas of Cloud-enabled solutions (Data and AI, Infrastructure, Digital and Application Innovation, Business Applications, Modern Workspace, and Security) and updates the benefits associated with these categories.

The same IDC research shows that the Microsoft Cloud Partner Program creates a competitive advantage for Microsoft partners: by accessing a wide variety of resources, they help them create a distinctive and value-added approach for their customers, aligned with Microsoft’s overall strategy.

Get the highest profitability

Microsoft proposes four initiatives to enable Microsoft partners in Spain to maximize their benefits and accelerate their growth in the country:

• Improve your relationship with Microsoft. The most profitable partners view their relationship with Microsoft as a strategic asset and invest time and resources to maximize its value.
• Commitment to the Microsoft cloud. Partners working in different areas of Microsoft cloud solutions can offer more added value to their customers.
• Develop own software solutions. Those who create their own software and services based on Microsoft technologies increase their economic impact and achieve higher margins.
• capture go to the market From Microsoft and co-selling opportunities. The most profitable partners are those that stick to Microsoft’s startup offerings.

To access the full study, please click here.

You can access the infographic in Spanish at the address below. connection.

About IDC

IDC Custom Solutions is the world’s leading provider of market intelligence, advisory services and events for the information technology, telecommunications and consumer technology markets.

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[1] IDC Block Book Live Edition, July 2022.

[2]Austria, Belgium, Denmark, Finland, France, Ireland, Italy, Germany, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

Labels: IDC