Microsoft's biggest channel moments for 2019

Microsoft remains an utterly essential vendor for the channel. So CRN has had a look at its biggest partner-related moments in 2019.

THE IUR BACKDOWN

It’s impossible to consider Microsoft in 2019 without remembering how the company planned to wind back internal use rights (IUR), the scheme that gives Microsoft partners free software for their own use.

The channel was most displeased with that decision and Microsoft eventually reversed its stance.

CRN research showed why: most resellers said losing IUR would hurt them financially and reduced their trust in Microsoft. 

The NEW CSP SCHEME

Microsoft’s introduction of a new cloud service provider (CSP) scheme was big news in 2019 for a number of reasons.

For starters, it shifts all Azure pricing into US dollars. While local customers will pay in Australian dollars, costs will shift with exchange rates. Partners are not super-happy about that.  

The new scheme is also notable for explicitly suggesting the way to make money from Azure is with services. Resellers will receive rebates and incentives for Azure sales. But Microsoft’s message has been loud, clear, and consistent: skill up to value-add, stop relying on sales alone.

THE END OF WINDOWS 7

Windows 7’s end of life was a major factor for the channel in 2019, as it drove a tidy little surge in PC purchases.

Microsoft eventually acknowledged that mass-migration from the OS would not be easy and made extended support available to small businesses as well as larger concerns. Better still, that extended support came from CSP members!

THE BEGINNING OF WINDOWS AS A SERVICE

When Microsoft launched Windows Virtual Desktops in October 2019, it looked like catch-up to AWS, Citrix and VMware.

It was actually more significant, because the launch included an offer of unlimited support for Windows 7 and a new multi-tenant Windows 10 offer. Both effectively turn Windows into a subscription service at a time when end-customers are being told that PCs should be sold on subscriptions.

TEAMS VS. SLACK

Microsoft’s new collaboration app Teams had a grand year, taking over from Skype for Business and cracking the 20 million-user mark. The company even released a Teams for Linux client.

Microsoft pointedly compared Teams’ performance to that of Slack, which late in 2019 reversed its decision not to work through channels but did so in a rather half-arsed way that offered nothing to Australian partners.

And there’s more to come: Microsoft Business Voice uses Teams as a client, and is promised to debut in Australia during 2020. Which should rather shake up the unified communications market just as it feasts on PABX retirements forced by the arrival of the NBN and retirement of ISDN.

ON-PREM DIES HARD

Microsoft has just-about herded partners and end-customers into Azure this year, all-but hiding even new on-prem products such as Windows Server 2019.

But we also saw signs that on-prem will die hard, such as when Microsoft extended support for Exchange Server 2010 by nine months to give partners more time to upsell clients. 

SATYA IN SYDNEY

Microsoft CEO Satya Nadella visited Australia in November and urged local businesses to increase their technology intensity – which sounded a lot like “just buy and implement more tech, please!”

But his visit coincided with one of Microsoft’s worst nightmares …

DOWN IN THE DUMPS

Microsoft experienced a few outages during 2019, which the channel did not appreciate.

Office 365 went down on the day Satya Nadella visited, one of three Australian Azure wobbles in a single week.

A GitHub outage in July disrupted developers and a big Azure incident messed up May. 

THE 2020 OPPORTUNITY

Microsoft helpfully signalled where it thinks its partners can cash in during 2020.

Global channel chief Gavriela Schuster suggested security, virtual desktops, AI and Microsoft 365 should all nourish the channel – if you get the right certifications!