Microsoft’s Evolutionary Forces

August 11, 2008 at 11:09 pm 1 comment

By Diane Krakora

At the Microsoft Worldwide Partner Conference, Julie Bennani, VP of Global Partner Programs, identified not only how the partner program was going to evolve over the next several years, but also why it must evolve.   Many of the solution providers and even some of the other vendors I talked with at the conference thought Microsoft was the industry channel leader.   They have certainly had a good run for the last 5 years.

Bennani explained that Microsoft launched their partner program just 5 short years ago.  It certainly seems longer than that to me.  The original program segmented five partner business models – system builders, ISVs, SIs, VARs, and LARs – and one geography.   Microsoft has spent billions and billions of dollars investing across the partner life cycle – of plan, enable, create demand, sell, service, and retain customers.  This investment has grown the program to support nine solution provider types,  including Retail, OEM, Hosting and Telco, several geography and industry segments.   this growth has let to Microsoft engaging over 400,000 partners and conducting 1,350, 000 partner training activities in the last year alone.    And their grand plans don’t stop there.

Microsoft believes the evolutionary forces in the world, customers and partners themselves will drive the change in the way Microsoft engages with partners.  Bennani highlighted five ways the world is changing customer preferences and driving evolution within Microsoft.  Appropriately first, are the changing customer preferences.   Customers are moving towards a hybrid consumption model – blending business and personal usage together.   How many people do you know that have a separate business cell phone and a personal cell phone?   The customer are looking for integrated solutions, which mean several products that work together to solve their business need.   And also the customers are looking to build long term relationships with their suppliers – increasing communications, trust and collaboration through these relationships.   The customers need business value and trust from capable partners via a simple engagement model throughout the lifecycle of the relationship.

The market is also changing.  Accelerated innovation and reduced barriers to entry particularly in the everything as-a-service world, is bringing about new ways of doing business.   Web 2.0 technologies, software-as-a-service and the adoption of open source is bringing about changes in the delivery of solutions and access to software.   Technology advances in bandwidth are enabling the Internet as a platform for customers and suppliers a like.

These market and customer forces are elevating the partners’ impact in the market place.  The blurring of the control of content with cloud computing is forcing the shift, however slowly, in the partners’ business models.  The partners need to increase their sales, marketing and technical readiness to achieve the market place recognition required to drive the growth and profitability they expect in the coming years.   We’re all seeing a “new” type of successful partner; one with increased transparency in a simple customer engagement model.

Microsoft wants to take a journey with partners that evolves their relationship from generalists to specialists, from a product based focus to a solution based focus, from technology led sales to business driven solutions that are technology enabled.   We’ve already seen highlights of how this journey will progress, with competencies and market specialities playing a bigger role in the Microsoft partner program over the last couple of years.  We will share more insights to the plans as they unfold.  Let’s hope the journey is a smooth one for both sides.

Advertisements

Entry filed under: Industry Perspective, Live from Events. Tags: , , .

Partner Segmentation … Critical to do? Or just another “fad” in channel modeling? Getting to Know You

1 Comment Add your own

  • 1. chaitra  |  November 12, 2009 at 3:24 am

    Hi Diane,
    I enjoyed reading your blog. I was searching about Microsoft Partner Program. Came across this article. You have articulated the thoughts very well. I really liked this statement about the customer preferences ” hybrid consumption model – blending business and personal usage together”.

    This is really correct and is happening everyday.
    thanks for writing a great article.

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 27 other followers

Recent Posts

Share This Blog

Share

Categories

August 2008
M T W T F S S
« Jul   Sep »
 123
45678910
11121314151617
18192021222324
25262728293031

%d bloggers like this: