Microsoft Channel Partners Generate $580 Billion in 2010, IDC Study Says

Vendor’s partner ecosystem yields 8 percent growth from 2009, 22 percent in three years.

A Microsoft Corp. commissioned report showed that the vendor’s worldwide channel partner community generated some $580 billion in revenue in 2010, an 8 percent increase over 2009 and a 22 percent gain in the past three years, growth that the company tagged to its improved resources, training and support.

The report, for which the vendor contracted with International Data Corp. (IDC), revealed that in 2009 for every dollar of revenue made by Microsoft, its partners generated sales for themselves of $8.70, according to the researcher.

“Microsoft and its partners make a significant impact on the global economy,” said Darren Bibby, IDC program vice president, Software Channels and Alliances Research.

“Microsoft does an excellent job of providing great products for partners to work with, as well as effective sales, marketing and training resources,” he said.

Microsoft said that the IDC report showed that changes the vendor made to its Microsoft Partner Network (MPN) to improve training, resources and support to help partners compete in the IT market, with both on-premise and cloud products has made a difference in partner sales and profitability.

In addition, the vendors’ cloud-based solutions have helped channel partners add infrastructure-as-a-service (IaaS), software-as-a-service (SaaS) through Microsoft’s Business Productivity Online products or Office 365, platform-as-a-service through Windows Azure or a combination of on-premise and cloud solutions, the study showed.

“As business models continue to change, the Microsoft Partner Network allows partners to quickly and easily identify other partners with the right skill sets to meet their business needs, so Microsoft partners are set up to compete and drive profits now and in the future,” said Jon Roskill, Microsoft corporate vice president, Worldwide Partner Group.

“The data provided in IDC’s study reflect the fact that the opportunities available to partners will have them poised for success now and in the future,” he said.

One partner, Slalom Consulting, a Seattle, WA-based IT solutions provider, said that its revenue has increased significantly in the past year owing to the vendors’ channel program.

“The Microsoft Partner Network has allowed us to extend and grow our business by delivering innovative solutions to our customers,” said Tom Chew, Slalom national general manager.

“Over the past year, we’ve increased revenue 45 percent and built strong momentum with Microsoft technologies around cloud services, business intelligence, portals and collaboration, dynamics, and unified communications,” he said. “As a Microsoft partner, we’ve been able to differentiate Slalom and grow rapidly in an extremely challenging business landscape.”

TAGS: Microsoft,IDC,channel partners,Microsoft Partner Network

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