During this week's Microsoft Worldwide Partner Conference, #WPC #WPC13 there was plenty of buzz about the growing market demand for cloud managed services. One of the most amazing stats shared during the presentations was that the spending for cloud services is equal to or greater than the spend for hardware and software. i.e. For every dollar spent on hardware and software there will be a dollar spent on services.
#WPC News & Highlights:
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One in four of Microsoft’s enterprise customers has Office 365, and with an annual revenue run rate of >$1 billion Office 365 is on track to be one of the fastest growing businesses in Microsoft history.
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Microsoft has seen over 40% growth in enterprise cloud businesses. Windows Azure alone is outgrowing the overall cloud market by >150 points.
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Nearly 50 percent of employees indicated that using enterprise social tools has increased their productivity, and many employees stated they would pay for these technologies out of their own pockets!
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89 percent of Microsoft's existing business customers are still not yet using any products in the Microsoft cloud (meaning primarily Office 365, Windows Azure, Windows Intune and Windows CRM). W
hile about 30,000 of Microsoft's "managed"/largest customers across all geographies are currently annuity/subscription clients, the remaining 40,000 or so have no annuity relationship with Microsoft today, officials said. LSP revenues grew in the double digits last year. Along with Microsoft's own salesforce, partners helped sell 11,000 new Enterprise Agreement volume-license deals last year, along with 8,400 volume renewals, officials told the LARs/LSPs today. http://www.zdnet.com/microsofts-top-eight-business-priorities-for-fiscal-2014-7000017844/
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CEO Steve Ballmer: "Cloud is the future of innovation. It’s the biggest growth opportunity for channel partners." Partners selling cloud-based solutions benefit from higher gross profit, at 1.6x percent; 2.4x new customers; 1.3x more revenue per employee; and 2.4x faster overall business growth. Cloud OS Accelerate: Microsoft, with key partners Cisco, Dell, Hitachi Data Systems, HP and NetApp, will invest more than $100 million to accelerate the delivery of new privateand hybrid cloud solutions to customers. Effective Oct. 1, Microsoft will offer partners a 30% discount on Windows Intune. Microsoft cloud partner program changes looming
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Cloud MSP services is on pace to be 220B in 2014 and >500B by 2020 (Gartner).
Worldwide business spending on cloud, which will reach $98 billion by 2016, according to a new IDC study (44% in the USA). 82% of net new commercial apps will be developed specifically for the cloud in 2013. IDC Study: Successful Cloud Partners
Related links:
Microsoft Partner Awards List.
Cloud Optimize Your Business from #MMS20 13 Microsoft Management Solutions Conference
Cloud MSP Service Provider Market Landscape
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