Microsoft: Partner engagement needs to improve

Microsoft has admitted it needs to improve its engagement with the channel if both parties are going to make the most of the new world of cloud computing.

The company opened its annual Australian Partner Conference (APC) in Cairns this week admitting to the hundreds of delegates that Microsoft's traditional software business model was being challenged by the likes of Apple and Google, and it had to change too.

[Check out all the photos from the opening night]

"With that change, we owe you clarity. We need to step up in that regard. Many of you bet your businesses on us," said Pip Marlow, managing director of Microsoft Australia.

But she said this "tenacious, resilient industry" would rise to the challenge and seize opportunities offered by the cloud.

Marlow pointed to IDC research showing that the public cloud would be worth $98 billion by 2016, but that many of Microsoft's 14,000 local resellers weren't in the cloud yet.

Office 365 was the fastest product in Microsoft's history to reach a billion-dollar revenue, and Marlow also pointed out that the company now had 16 business units generating $1 billion – up from eight units each doing a billion dollars in 2010.

Dean Swan, Microsoft's director of partner business & development, agreed that Microsoft needed to step up and help its channel partners deal with transformation.

"Our traditional business model is being challenged by device companies like Apple and by cloud companies like Google.

"Over the past 12 months, Microsoft has undergone a transformation into a services and devices business," added Swan.

He said that Microsoft was "winning in the cloud", pointing out that Office 365 grew 500 percent in a year. The company has, however, made it hard for its partners to share in the spoils, with Telstra's exclusive Office 365 deal in Australia still a source of discontent in the channel.

Elsewhere, Microsoft's devices strategy faces an uphill battle, particularly the sluggish sales of its Surface tablet, which has largely been sold outside of the channel. The tech giant recently announced a write down of $US900 million on the device.

"We need our partners to be our number one advocates to customers," Swan said.

The company used the opening day of its conference to reveal the winners of the annual Microsoft Australia Partner Awards (MAPAs).

Brisbane-based database specialist Wardy IT, east coast system integrator Ensyst and SMB service provider Insight were the big winners, each taking two awards apiece.

[Click here for the full list of winners]

The winners across 24 categories were chosen from a national field of more than 200 nominations from Australian partners.

Swan said: "The MAPAs provide us with a great opportunity to celebrate the hard work, dedication and innovation that our local partner network delivers to customers.

"It’s important for Microsoft to recognise and showcase the outstanding solutions our partners are delivering at a world-class level to help customers."

Steven Kiernan is a guest of Microsoft at APC