A blueprint for Microsoft UK partner competitiveness

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A blueprint for Microsoft UK partner competitiveness
A blueprint for
Microsoft UK partner
competitiveness
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A blueprint for Microsoft UK partner competitiveness
Home       Cautious confidence   The perfect fit    Opportunity knocks     Knowing the score      Shifting gears   Case studies     Appendix

A blueprint for
Microsoft UK partner
competitiveness
                                                                     F   or UK businesses, it is an undeniably challenging
                                                                         picture. Many, including those in the UK Microsoft

  Calculating competitiveness
                                                                      Partner Network, find themselves caught between
                                                                                                                                           “Microsoft UK partners
                                                                      the rock of today’s disruption and the hard place of
                                                                      tomorrow’s uncertainty around the UK’s COVID-19                       have proved they
  In 2020, Microsoft UK partnered with
  an independent team of economists                                   recovery and future trading relationship with the EU.                 are very resilient
  and researchers, led by Dr Chris                                                                                                          and constantly
                                                                      Yet amidst the darkness, there is also light. At the end
  Brauer, Director of Innovation at                                   of last year, Microsoft’s ground-breaking report Creating             evolve. They now
  Goldsmiths, University of London, for                               a Blueprint for UK Competitiveness revealed a potentially             have an opportunity
  a detailed study of what it takes for UK                            prosperous road ahead.
                                                                                                                                            to build on those
  organisations to compete in a post-                                                                                                       inherent strengths
                                                                      The report found that by embracing a new model of
  COVID, post-Brexit world.
                                                                      competitiveness based around talent, technology and                   to lead the UK’s
                                                                      future readiness, all underpinned by their relationship to
                                                                                                                                            economic recovery.”
        Read the full report, entitled Creating a                     the ecosystem in which they operate, UK businesses could
        Blueprint for UK Competitiveness here.                        significantly enhance their ability to lead and succeed
                                                                      domestically and on the global stage.

                                                                                                                                                          C L A R E B A R C L AY,
  Conducted in winter 2020/21, this new study,                        Crucially, the impact on the UK economy could be
                                                                                                                                                          CEO,
  led by Dr Brauer and the same research team,                        significant: an overall economic boost of £48.2 billion                             MICROSOFT UK.
  now examines that question – and the scale of                       along with the chance to build a better workplace and
  the opportunity – in specific relation to the UK                    a fairer, more inclusive society. As we will explore in
  Microsoft Partner Network.                                          detail during the pages that follow, this opportunity is
                                                                      just the beginning for companies in the UK Microsoft
                                                                      Partner Network.

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A blueprint for Microsoft UK partner competitiveness
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Cautious confidence                                         our research last year found that 46% of UK               Of course, there is trepidation too. According to
The financial and operational strength of Microsoft’s       organisations overall report a reduction in turnover      our survey, Microsoft UK partners are well aware of
Partner Network has delivered a long history of             of 5% or more during COVID-19.                            the barriers to growth. Top of the list is the current
mutual success. Yet, now more than ever, our                                                                          economic climate, with 55% of survey respondents
research suggests that, collectively, Microsoft UK          External industry figures appear to bear out this         citing this as their biggest concern. That’s followed by
                                                                                                                                                                                 “ The rate of change
partners tend to be better positioned than many             cautious confidence. Despite institutions such as         COVID-19 (40%), the skills and talent shortage (32%)         is incredibly fast, so
UK organisations to grow out of this period of              the IMF predicting a significant economic downturn        and Brexit (31%). Most also recognise that the nature        transformation must
uncertainty. More than half (58%) of those we               in the UK, venture capital investment in Britain’s        of these challenges is constantly shifting, forcing          become absolutely
surveyed expect to experience an increase in revenue        technology firms grew by £11bn in 2020, an increase       organisations to adjust their operating practices with
this year, compared to 14% that anticipate no change        on 2019’s pre-coronavirus levels and higher than the      agility, regularity and speed.
                                                                                                                                                                                   engrained in your
and 28% that fear a decrease. In contrast,                  rest of Europe combined.                                                                                               organisation as a
                                                                                                                                                                                   constant process.”

     58% of Microsoft partners expect to                                                                                                                                                   ZAK VIRDI,

     experience a revenue increase in 2021                                                                                                                                                 MANAGING DIRECTOR UK,
                                                                                                                                                                                           IRELAND AND AFRICA,
                                                                                                                                                                                           SOFTWAREONE.

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A blueprint for Microsoft UK partner competitiveness
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The perfect fit                                                   Figure 1. Falling Into Line
As for why companies in the UK Microsoft Partner
Network appear to be better equipped than most
to succeed in a post-COVID, post-Brexit Britain, it              Proportion of £48B attributed to each aspect of the
comes down to a ‘perfect fit ‘of technology expertise,           model for UK competitiveness                                                                          4D Thinking
digital skills and the willingness to adapt to an ever-
                                                                                                                                                                       In Creating a Blueprint for UK
changing landscape.
                                                                                                                                                                       Competitiveness, the research team
                                                                                                                                                                       identified four key dimensions of a
As we see in Figure 1. Falling Into Line, their                                                                                                                        new model of competitiveness:
current strategic priorities match closely with
the four key elements of the new model for                            46.38%                                                                                           • Talent – the need for responsive
                                                                                                                                                                         leadership, a diverse and inclusive
competitiveness the research team identified in
                                                                                                                                                                         workforce, increased digital skills
the 2020 study. See 4D Thinking. This contrasts                                        23.42%          18.46%                                                            and close collaboration between
sharply with UK organisations overall, just 15% of                                                                     11.74%                                            leaders and employees.
which were classified as frontrunners, i.e. businesses
                                                                                                                                                                       • Technology – investment in new,
demonstrating the necessary competitive
                                                                     Technology     Future Readiness    Talent         Ecosystem
                                                                                                                                                                         pervasive digital solutions that
capabilities to achieve 5% growth or more in the                                                                                                                         boost productivity through greater
current climate.                                                                                                                                                         efficiency, collaboration and speed
                                                                                                                                                                         to impact.
This alignment is both striking and encouraging.
                                                                 Current areas of strategic focus for the UK Microsoft                                                 • Future readiness – the need to
But equally, now is no time to be complacent, much                                                                                                                       plan and innovate more effectively
less inert. As James Chadwick, General Manager -
                                                                 Partner Network related to the competitiveness model
                                                                                                                                                                         to navigate disruption, pivot
Commercial Partner at Microsoft UK, puts it: “Many                                                                                                                       towards fresh growth opportunities
of our partners are already ahead of the game when                                                                                                                       and adapt to market changes.
it comes to fitting the blueprint we have identified                                                                                                                   • Ecosystem – an organisation’s
for future UK competitiveness. The task now is to                                                                                                                        relationship with the external
accelerate – and stay there.”                                                                                                                                            environment driven by continual
                                                                      39.79%                                                                                             creative destruction that
                                                                                       33.41%
                                                                                                                                                                         revolutionises the economic
                                                                                                                       15.11%                                            structure.
                                                                                                       11.69%

                                                                     Technology     Future Readiness    Talent         Ecosystem

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A blueprint for Microsoft UK partner competitiveness
Home       Cautious confidence       The perfect fit   Opportunity knocks    Knowing the score     Shifting gears     Case studies       Appendix

                                                                                                                                                                                  Knowing the score
                                                                                                                                                                                  The good news is many partners are already
                                                                                                                                                                                  focusing on the macroeconomic and societal
                                                                                                                                                                                  aspects of their growth strategy too. This includes
                                                                                                                                                                                  everything from actively supporting employees
                                                                                                                                                                                  with their work-life balance, as seen at global
                                                                                                                                                                                  IT distribution firm Tech Data, to fostering a
                                                                                                                                                                                  diverse and inclusive culture at the likes of retail
                                                                                                                                                                                  analytics company, Uncrowd, and managed
                                                                                                                                                                                  service provider, Phoenix Software.

Opportunity knocks                                            Moreover, this figure is just the beginning. As more
                                                                                                                         CASE STUDY                                                 CASE STUDY
The potential rewards for doing so are compelling.            and more UK businesses seek to sharpen their
                                                                                                                         IRIS Software Group                                        Phoenix Software
Of the £48.2 billion boost to the UK economy                  competitive edge through digitalisation, demand
achievable if every organisation makes marginal gains         for services like cloud support, data analytics,                Click here to read                                        Click here to read
in its competitiveness, UK Microsoft Partner Network          remote work solutions, deployment and migration
organisations stand to benefit disproportionately.            and business analysis and strategy, is increasingly
                                                              outstripping supply. Consequently, by doubling down      “As a business, we must invest in being able to answer     But there is, unsurprisingly, much work to be
Despite representing only 1.13% of VAT-registered             in these areas, the UK Microsoft Partner Network         those demands. There is a window to be disruptive that     done. Indeed, perhaps the best way to lay out
business in the UK, our research suggests they                could go beyond the £48.2 billion competitiveness        we cannot miss out on. We must be innovative to stay       the road to greater competitiveness in future is
could contribute 13.96% of that total figure. In              boost and unlock an additional market-making             one step ahead of the game.”                               to first consider how partners are currently faring
other words, by taking small steps to enhance their           opportunity of £2.34 billion, largely in 2021.                                                                      across those four key dimensions of technology,
competitiveness during 2021, Microsoft UK partners            In total, that is a collective £9 billion additional     Yet while the bottom line impact of such a boost           talent, future readiness and the ecosystem. What
could generate combined additional revenues of at             revenue opportunity, for partners to support the         is obvious, to view the opportunity for Microsoft          are their strengths in each area and where are the
least £6.74 billion beyond what they already make. To         UK’s recovery in 2021.                                   UK partners as a solely economic one would be              opportunities to do even better?
put this into context, Mintel place the entire UK music                                                                short-sighted. The very essence of our new model
and audio production income for 2020 at less than             “COVID-19 has accelerated the necessity, appetite and    for competitiveness is that it delivers not just           Here, we examine each of the four dimensions
£1 billion (£984 million).                                    help customers need to embrace the cloud” explains       financial prosperity for a selection of well-positioned    in turn.
                                                              Elona Mortimer-Zhika, CEO of IRIS Software Group.        businesses but that it also drives collective economic
                                                                                                                       and social growth for the UK. While supporting their         SEE ALSO FIGURE 3                   Click here
                                                                                                                       own success, partners can play a vital role in driving       Competing Expertise
     £6.74 billion – the minimum boost UK Microsoft                                                                    their customers’ success, powering the UK’s wider
     Partner Network organisations could deliver for the UK                                                            economic recovery and tackling pressing issues such
     economy through increased competitiveness in 2021                                                                 as diversity, regional inequality and digital inclusion.

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A blueprint for Microsoft UK partner competitiveness
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                Technology                                                                                                                                    Talent

D    uring our 2020 research, we found an
     organisation’s ability to create a pervasive digital
infrastructure and transition fully to new technologies
                                                                      of UK businesses. As well as supporting their own
                                                                      digital transformation, this puts partners in a strong
                                                                      position to sell such solutions to customers.
                                                                                                                                 D    espite the challenges of COVID-19, nearly three-
                                                                                                                                      quarters (71%) of the partners we surveyed plan
                                                                                                                                  to hire new staff within the next six to 12 months
                                                                                                                                                                                         Put another way, organisations’ willingness to
                                                                                                                                                                                         meet employees’ needs in areas like training and
                                                                                                                                                                                         development, remote working, communication
within three to six months can significantly boost its                                                                            while three in five (61%) say workforce development    and empathetic leadership is directly linked to
productivity and growth.                                              Yet, equally, this is not simply a pace race. The job       and responsive leadership are important to their       their ability to offer high quality products, services
                                                                      now is to focus on the potential costs of cloud             internal business.                                     and experiences.
This is good news for the UK Microsoft Partner                        adoption, including privacy and security. “Speed
Network where the use of cloud solutions and hybrid                   to impact doesn’t mean deploying something                  Just over a third (37%) currently offer workforce      Pleasingly given the current times, supporting
systems like machine learning and data analytics —                    at any cost for any timescale,” points out James            development as a client service.                       mental health is also a key focus among partners,
all of which can enhance speed to impact — is far                     Chadwick. “It means delivering the required value                                                                  with 31% listing it as one of their top priorities.
more common and embedded than in the majority                         or outcomes in a responsible manner.”                       For the Network, there must thus be a continued        This places it behind only digital inclusion and
                                                                                                                                  focus on fostering a happy, diverse and inclusive      environmental sustainability (39% and 36%
                                                                                                                                  culture in which workers at every level feel valued    respectively) – two similarly important issues that
                                                                                                                                  and confident enough to innovate. One where, in        UK organisations across sectors can help address as
                                                                                                                                  the words of Paul Shannon, CEO of cloud service        the country rebuilds after COVID-19. It also further
                                                                                                                                  provider, ANS, “making a mistake is not only OK,       underscores the intrinsic link between the economic
                                                                                                                                  but encouraged; otherwise, you are probably not        and social benefits of a sustainable growth strategy
                                                            “There is an incredibly competitive                                   pushing the boundaries enough.”                        for competitiveness.

                                                             market for people with the right
                       ANDRE A ZVEDO,
                       GLOBAL HEAD OF CLOUD
                       PA RT N E R S H I P S,
                                                             skills. Investing in developing
                                                             your staff and helping them grow
                       CLOUDREACH.
                                                                                                                                    CASE STUDY                                             CASE STUDY

                                                             their career is therefore vital.”                                      Kainos                                                 Tech Data

                                                                                                                                         Click here to read                                    Click here to read

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A blueprint for Microsoft UK partner competitiveness
Home       Cautious confidence       The perfect fit    Opportunity knocks    Knowing the score      Shifting gears   Case studies     Appendix

    Future Readiness                                                                                                                      Ecosystem

T   he best performing organisations are the ones
    investing strongly in change management
programmes and R&D. Many partners say
                                                             “How our partners run their own business and
                                                             drive their own digital transformation directly
                                                             translates into the conversations they have with
                                                                                                                         W      e found Microsoft UK partners that
                                                                                                                                collaborate with other businesses in the
                                                                                                                         Network tend to perform better. Indeed, a third
                                                                                                                                                                              safer path to international expansion. Currently, just
                                                                                                                                                                              12% of UK Microsoft Partner Network companies
                                                                                                                                                                              generate more than 30% of their income abroad.
building future readiness has become a key                   their customers,” says Alex Smith, Director of              (33%) of those that developed such partnerships      That compares to 33% that collect between 1% and
part of their internal business during COVID-19,             Cloud Services Scale Partners for Microsoft UK.             expect to grow their revenue by more than 15%        10% of their revenue internationally and 34% that
while plenty also cite it as something they are              “So, if they’re not transforming themselves, they           this year compared to 19% of those that did not.     do not conduct any business outside the UK at all.
planning to offer more to clients, a potentially             do not transform their customers.”                          See Figure 2. Collaborators Are Winners and also     Similarly, only 17% of the partners we surveyed say
exciting new market opportunity. Taking steps                                                                            Shifting Gears, page 8.                              they have a plan to adopt a more global mindset in
to bolster resilience and agility within their own                                                                                                                            their internal business (for example, hiring policies)
four walls and beyond them will be become ever                                                                           As well as allowing partners to benefit from         during the next six to 12 months while 36% admit
more important to businesses’ operational and                                                                            complementary expertise and combined revenue         they are not exploring the possibility of foreign
commercial success.                                                                                                      streams, such collaborations offer a potentially     expansion at all.

                                                                                                                                                                              Given the level of uncertainty right now, this
 Figure 2. Collaborators are Winners        •    Collaborating   •   Non-collaborating                                                                                        hesitation is understandable. Yet as far as possible, it
                                                                                                                                                                              also needs to change. In our initial competitiveness
                                                                                                                                                                              report, we calculated that growing the proportion
                                                                                                                  33%
                                                                                                                                     Expected revenue increase in             of international trade and increasing the number of
                                                                                                                                     2021 for Microsoft UK partners           non-UK employees can have a positive impact on
                                                                                                                                     that collaborate with other              organisations’ overall revenue when backed up by
                                                                 19%                                                    19%
         16%                                                                                   46% 46%                               Partner Network organisations            the necessary remote working support. For Microsoft
   13%                                                                              13%                                              vs. those that do not.                   UK partners, collaborating with a fellow Network
                          10%                             10%                 11%
                                       7%                                                                                                                                     organisation overseas or that has a global presence
                                                5%                                                                                                                            could therefore be a valuable driver of growth
                     3%
                                                                                                                                    Revenue change                            moving forward.
  +15% decrease    5-15% decrease    1-5% decrease         No change         1-5% increase   5-15% increase      +15% increase
                                                                                                                                                                                                                                         7
A blueprint for Microsoft UK partner competitiveness
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  Figure 3. Competing Expertise                                                                                                                                                                     Shifting gears
                                                                                                                                                                                                    What, then, can the UK Microsoft Partner Network organisations
 How Microsoft partners rate their expertise across                                                                                                                                                 do to unlock this £6.74 billion revenue boost for the UK economy
 the four dimensions of competitiveness                                                                                                                                                             and, better still, go beyond it to secure the additional market-
                                                                                                                                                                                                    making £2.34 billion potentially available in 2021?

                                                                                                                                                                                                    The key is to recognise that the opportunity must be seized not
                                                                                                                                                                                                    awaited. To drive their own growth while also playing a key role
       Technology                                                                               Talent                                                                                              in the UK’s collective economic and social progress, companies
           Cloud support and services                                                                  Diversity and Inclusion                                                                      should seek to make immediate, incremental changes – both
           Data Analytics and/or Data Science                                                          HR Services                                                                                  internally and in their work with customers. Crucially, these
           Data solutions                                                                              Learning, Skills Training & Certification                                                    changes do not require significant capital investment but, when
           Hardware                                                                                    Remote work solutions                                                                        allied together, can dramatically enhance their competitiveness in
           IP Services
                                                                                                                                                                                                    a post-pandemic, post-Brexit world.
           Security services

                                                                  1%                                           4% 4%
           10%                                               3%
                                                                                                                                                    13%
      5%
                                                21%                        26%

12%
                                 45%
                                                                                                                               26%
                                                                                                                                                                                                            “The beauty of the IT industry is
                                                                                                                                                                                                             the degree of evolution. Having
                                                                                                                                                                            47%

 15%
                                                                            12%           66%                                                40%                                                             a flexible partner ecosystem is an
                                                                                                                                                                                                             important part of understanding
                 13%                                   37%
                                                                                                                                                                                                             future opportunities in terms
                                                                                                                                                                                                             of where they can lead us.”
                                                      Future Readiness                                                                             Ecosystem
                                                       Adoption and change management                                                               Business analysis and/or strategy services                            JAMES BAKER,
                                                       CRM support and services                                                                     Project Services                                                      ALLIANCES & MARKETING
                                                       Deployment and/or Migration                                                                  Regulatory Compliance                                                 D I R E C T O R , S O F T C AT.
                                                       Infrastructure maintenance
                                                       Marketing
                                                       Research consultancy & support for funding

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A blueprint for Microsoft UK partner competitiveness
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Within their own                                     Here are six strategic steps Microsoft UK partners can
                                                     take in 2021 to improve their own operations and
business model                                       unlock new revenue opportunities with clients.
                                                                                                                                                                                            “ Without a
           1.     Collaborate with other members of the                  2.   Invest in agility and change management               3.   Focus on D&I                                         commitment
                  Microsoft Partner Network                                   Focusing on agile solutions for remote                     Developing remote working solutions is a             to equality of
                  Companies that collaborate with other members               working can boost workforce productivity and               strong focus for the UK Microsoft Partner            opportunity,
                  of the Network tend to perform better. A third              satisfaction while also offering a profitable              Network, building diversity and inclusion into
                  (33%) of those that developed such partnerships             service externally. Partners should look to                these solutions and as standalone offerings
                                                                                                                                                                                              you are not
                  expect to grow their revenue by more than 15%               boost speed to impact by adjusting their                   remains much less of a priority (listed by           picking from
                  this year compared to 19% of those that did not.            strategy for rolling out new technologies, using           just 4% of partners as an area of industry           the largest
                  Collaboration can promote knowledge sharing,                MVPs to support customers in new ways then                 expertise). Additionally, less than a third          pool of talent.
                  tap new markets and lead to complementary                   continually refining them as their needs and               (27%) of partners surveyed told us they are
                  services that create fresh revenue streams.                 the market evolve. Similarly, those aiming to              prioritising diversity and inclusion to support      And that
                  In challenging economic conditions, it also                 generate new customer value or transform                   their community. Partners must therefore             means you are
                  represents a less risky solution for new product            their operating models should seek to respond              turn good intentions into lasting action,            not going to
                  development and market expansion.                           to fast‐changing customer requirements                     transparently discussing and encouraging
                                                                              around technology adoption and change                      diverse hiring practices and workforce
                                                                                                                                                                                              get the best.”
                                                                              management. This means focusing on: using                  inclusion programmes while also building on
                                                                              data analytics to inform decision-making,                  the renewed focus on care and social impact
                                                                              strategy and planning; assessing the global                during COVID-19 to address broader equality
  “ No one partner can solve every problem                                    competitiveness of products; and improving                 issues in future. Meanwhile, the intelligent use
                                                                              data security to ensure existing services remain           of data can ensure companies do not grow to
    alone. Sometimes we need to spot                                          robust and that migration and deployment are               become echo chambers, which risks limiting
    patterns and proactively get together.”                                   not compromised as they speed up.                          creativity and potential in the long-run. There     KEN CHARMAN,
                                                                                                                                         is also an external opportunity to be grasped       CEO,

                                                                                                                                         here. Given the UK’s position as a talent           U F L E X R E WA R D.

            MARK TURNER,                                                        CASE STUDY                                               magnet in Europe and the convenience of de-
            DIRECTOR,
                                                                                SoftwareONE                                              facto remote working as a result of COVID-19,
            C L A R A N E T.
                                                                                                                                         partners can take the lead in developing
                                                                                   Click here to read                                    services that help customers become more
                                                                                                                                         diverse and inclusive too.                                                  9
A blueprint for Microsoft UK partner competitiveness
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                                      4.     Build RPA and automation services                  5.    Develop data analytics capabilities               6.   Shore up your security offering
                                             Currently, just one in five (20%) of the UK              In the last 12 months, we have seen how the            Fewer than one in 10 (9%) of our survey

With customers
                                             partners we surveyed is developing new                   intelligent use of data can be the difference          respondents currently provide security
                                             RPA products/services for customers while                between survival and failure, providing                solutions to clients as a main line of
                                             only slightly more (23%) are doing so for                organisations with much-needed clarity                 business. Given the lasting shift towards
                                             automation solutions. While this is likely               through COVID-19. Yet right now, only 28%              employee flexibility and remote working
                                             due to their clients’ intense focus on cloud             of the Microsoft UK partners we surveyed               in light of COVID-19, this is a potential
                                             migration during COVID-19, now is the                    offer data solutions and data analytics as             area of growth. First by opening up new
                                             time to refocus that strategy. With growing              a combined service while just 13% plan                 lines of revenue — including security
                                             positivity among workers about how RPA and               to grow this area of business in the next              reviews and product implementation across
                                             automation can take away repetitive tasks                six to 12 months. With many customers                  multiple remote devices — and by enabling
                                             to provide space for more interesting work               having accelerated their migration to the              Microsoft UK partners to create more long-
                                             as well as greater communication between                 cloud in 2020, we can now expect them                  term relationships with customers based
                                             leaders and staff in a new normal of remote              to start exploring the advanced data                   on assessing and managing their security
                                             working, both these areas of business have               analytics capabilities and real-time business          posture on an ongoing basis. “Ideally, we
                                             high growth potential. Investing in them now             intelligence solutions available. Partners             want to continually evolve their Security
                                             may allow partners to capture a large, early             should thus be prepared to respond to that             Services and be able to constantly manage
                                             segment of the market while those that do                demand, increasing their data analytics                and remediate their customers’ security
                                             not risk falling behind the curve.                       products and services — ideally as part of a           posture,” says David Leigh, MSP Lead,
                                                                                                      wholesale adoption and change management               Commercial Partner at Microsoft UK.
                                                                                                      offering. Of course, doing so requires having
                                                                                                      the right skills within the workforce. Targeted
                                                                                                      recruitment programmes, training for
                                                                                                      existing staff and even collaborations with                 Only 9% of Microsoft
                                                                                                      other businesses in the UK Microsoft Partner                UK partners currently
                                                                                                      Network are all great places to start.
                                                                                                                                                                  offer security services as
                                                                                                                                                                  a main line of business

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Home       Cautious confidence     The perfect fit    Opportunity knocks   Knowing the score   Shifting gears   Case studies   Appendix

2021 Vision
Microsoft offers a range of resources to support
the Microsoft Partner Network as they adapt to
the challenges of today and seek to deliver the
innovative solutions and services to lead in 2021
– and beyond. These include:

            The Cloud Solution Provider                                    Partner Center Insights
               Program Guidebook                                                Dashboard

       A step-by-step guide to help partners                 A way for partners to become more data-driven
       accelerate cloud business growth and                     through a unified view of data across their
           expand revenue opportunities.                    Microsoft Partner Network organisational hierarchy.

              You can also find more information and advice, in this article by Gavriella Schuster
                        Microsoft Corporate Vice President, One Commercial Partner.

While the true impact of COVID-19 and Brexit remains uncertain,
this latest research shows there is a promising path ahead for
Microsoft UK partners that are willing and able to make the
changes needed to boost their competitiveness in 2021 and
beyond. A path that leads not only to a sizeable economic
opportunity for themselves but to a better, fairer and more
prosperous nation as a whole. It may not always be easy or
predictable. But the time to tread it is now.

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CASE STUDY

IRIS Software Group
                                                          “When COVID-19 hit, our priority was to                   Throughout this time, support for
                                                           serve customers better and help them                     customers has been paramount. One
                                                           digitally transform. Rather than focus on                in five UK employees are paid using
                                                           cutting costs, we identified ways of doing               IRIS payroll solutions and with constant
                                                           business differently to meet customer                    changes in government support schemes
                                                           demand while ensuring we continued to                    such as furlough, we deployed over 60
IRIS Software Group employs over                           be scalable and future-proof.                            payroll releases to ensure everyone was
2,000 staff to deliver integrated                                                                                   paid accurately and on time.
business critical software to help                            We armed our staff with the tools
more than 120,000 customers                                   and skills to sell, support and deploy                 In addition to our advice, guides and
                                                              our products virtually rather than                     information, we also developed a new
to be more productive, better
                                                              having to be onsite. We acquired                       product, IRIS Engage and offered it to HR
engaged with stakeholders and
                                                              three cloud businesess and doubled                     customers free of charge so they could
compliant with regulations. CEO,                              the level of ongoing development                       quickly deliver effective communications
Elona Mortimer-Zhika, explains                                resource to deliver cloud products to                  and engage with employees.
why the company chose to focus                                customers even faster. Our technology
on technological transformation                               investment is bringing our people                      COVID-19 has accelerated the necessity,
and increasing product and                                    and customers onto one CRM, one                        appetite and help customers need to
people investment, rather than                                ERP, one professional services business                embrace the cloud. As a business, we
cost-cutting during COVID-19.                                 and one support ticketing system. This                 must invest in being able to answer
                                                              allows IRIS to be more agile and divert                those demands. There is a window to be
                                                              resources quickly to where there is                    disruptive that we cannot miss out on.
                                                              growth and opportunity.                                We must be innovative and stay one step
               ELONA MORTIMER-ZHIKA,
               CEO,                                                                                                  ahead of the game.”
               I R I S S O F T W A R E G R O U P.

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CASE STUDY

Phoenix Software

Phoenix Software uses technology                   “I talk relentlessly about our staff being                feel motivated, safe and happy at work.
to empower customers and                            our company’s biggest asset and part of                  Talking openly about our commitment
employees, optimise operations                      that is ensuring we have a diversity and                 to D&I has also helped us attract more
and reinvent products and                           inclusion strategy that adds value to our                diverse talent, especially women, who feel
business models. Managing                           organisation by contributing to employee                 strongly aligned to our values.
Director, Samantha Mudd,                            wellbeing and engagement. For example,
discusses how the company’s                         we have been training our leadership                      It is even having an impact outside our
                                                    team over the last two years in areas like                business, with D&I becoming a part of
renowned commitment to diversity
                                                    unconscious bias and making sure they                     our customer conversations too. For
and inclusion is helping it retain
                                                    interact with staff in an authentic way.                  example, we heard from a client about
and attract top talent.
                                                    We are also working on transforming                       how features in the Microsoft technology
                                                    how our people access applications and                    stack can help people with dyslexia or
                                                    collaborate if they have a disability.                    who are hard of hearing or sight. That
                                                                                                              then inspired our own staff to learn
                                                       We focus a lot on recruitment too. From                more about those functionalities so
                                                       the first moment they arrive, we make                  they could sell it to other companies
              S A M A N T H A M U D D,
                                                       it clear to new joiners that we are a                  and improve technology access for their
              MANAGING DIRECTOR,                       company that obsesses about them being                 employees with similar needs. The loop
                                                       able to give their best each day and                   just carries on.”
              PHOENIX SOFTWARE.

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CASE STUDY

Tech Data

Tech Data is an end-to-end                           “When I joined, we had lots of excellent                   rather than lose them. For example, we
technology distributor with more                      salespeople but their skills were focused                 created our Channel Academy, a portal
than 100 offices around the world                     mainly on relationships rather than                       where salespeople and resellers can sign
and over 15,000 employees. Here,                      product or technical knowledge. We                        up for training courses for their vendor
Business Unit Director, Simon                         have therefore spent the last three years                 exams. But it has to reach beyond just
Bennett, reveals how the firm                         investing heavily in making sure our                      tools and into culture too. Most of our
is equipping its workforce for a                      people either have the right skills or, if                people want to develop but the big
                                                      they do not, potentially changing their                   challenge is making sure we support
digital future.
                                                      role. We are probably about 70% of the                    them in balancing their workload,
                                                      way through that process.                                 personal life and the time required to
                                                                                                                learn a new skill or gain a particular
                                                         We have also worked hard to ensure we                  vendor accreditation.”
                                                         can recruit and retain talented people

              S I M O N B E N N E T T,
              BUSINESS UNIT DIRECTOR,
              T E C H DATA.

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CASE STUDY

SoftwareONE

Managing Director, Zak                         “For us, being ‘future forward’ means                  To make the most of this market
Virdi, explains how IT service                  being agile, adaptive to changes and                  opportunity, there is also a huge amount
management company,                             resilient. Not just through our internal              of enablement and change management
SoftwareONE, has become ‘future                 processes and workforce but in the way                to do within our own business. We have
forward’ during COVID-19 by                     we deliver for our customers. Previously,             to educate our workforce about the
offering customers adoption and                 we provided adoption and change                       capabilities we have and that is coming
change management services                      management as part of our professional                from a vastly different space to where
                                                services stream. But since COVID-19                   we were two years ago. It will be vastly
alongside its cloud solutions.
                                                struck and more companies shifted to                  different in the next six months too. The
                                                cloud-based technologies, we have                     rate of change is incredibly fast, so
                                                incorporated this as a core component                 transformation has to become absolutely
                                                of our managed services, enabling our                 engrained in your organisation as a
                                                clients to really leverage the advantage              constant process. Nowadays, you are
                                                of the cloud-based investment they                    changing all the time and you have to
                                                are making.                                           make sure you educate as you go forward.”

              ZAK VIRDI,
              MANAGING DIRECTOR UK,
              IRELAND AND AFRICA,
              SOFTWAREONE.

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CASE STUDY

Kainos
                                                      “We already had a mobile and agile                         COVID-19; in fact, we have extended
                                                       workforce before COVID-19, so the                         our team and our e-learning offerings,
                                                       network and infrastructure were already                   and, in doing so increased the scope and
                                                       in place for remote working. For us,                      scale of our programmes.
                                                       the challenge was about continuing to
                                                       support and develop our people while                      Focusing on our people is not something
Kainos provides digital technology                     they are working remotely 100% of the                     that has just happened over the last
services for public, commercial                        time. Our approach is to attract great                    nine months — it is completely woven
and healthcare organisations                           people and help them develop the skills                   into the fabric of the company — but
and has been delivering award-                         that they need to succeed – today and                     COVID-19 certainly has accelerated
                                                       tomorrow. That has been one of the                        some of our plans around developing,
winning digital transformation, data,
                                                       driving ambitions behind our Academy.                     supporting and managing our
artificial intelligence (AI), cloud and
                                                       We have Academy programmes that                           colleagues.
design solutions across the UK,                        support colleagues to develop skills in
Europe and North America for over                      a particular system, knowledge area                      To keep up with customer demand, we
30 years. CEO, Brendan Mooney,                         or technical skill, as well as developing                are also planning to hire around 400
and CPO, Colette Kidd, discuss how                     professional skills to equip our people to               people across the business. As part of
a laser focus on talent development                    perform at their best. These programmes                  this, we will recruit extensively from
has helped them continue to grow                       have increased significantly during                      schools, colleges and universities to
during COVID-19.                                                                                                ensure that we are attracting the very
                                                                                                                best new talent – we are committed to
                                                                                                                nurturing digital skills, attracting people
                B R E N D A N M O O N E Y,                                  CO L E T T E K I D D,
                                                                                                                to careers in technology and helping
                CEO,                                                        CPO,                                them develop into the future leaders of
                KAINOS.                                                     KAINOS.
                                                                                                                our organisation.”
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Home       Cautious confidence       The perfect fit   Opportunity knocks    Knowing the score     Shifting gears       Case studies       Appendix

Appendix
Acknowledgements                                             Literature review – an in-depth review of academic       UK Microsoft Partner Network                                References
The research was led by Dr Chris Brauer, Director
                                                             publications, industry literature and media
                                                                                                                      participants                                                • Microsoft. (2020). Creating a Blueprint for UK
                                                             knowledge to understand the context within which                                                                       Competitiveness. Retrieved from: https://www.microsoft.
of Innovation, Goldsmiths, University of London in                                                                    • Andre Azvedo, Global Head of Cloud Partnerships,
                                                             Microsoft UK partners operate.                                                                                         com/en-gb/business/uk-recovery/
partnership with Microsoft in winter 2020/21. The                                                                       Cloudreach
independent team of economists, psychologists,                                                                        • Brendan Mooney, CEO, Kainos                               • UKTN. (2020). 2020 projections for UK Tech Sector
                                                             Survey – a barometer survey of 264 members of
data scientists and social scientists included Research                                                                                                                             growth. Retrieved from: https://www.uktech.news/2020-
                                                             the UK Microsoft Partner Network, a satisfactory         • Colette Kidd, CPO, Kainos                                   projections-for-uk-tech-sector-growth
Director Dr Jennifer Barth, Dr Eurydice Fotopoulou
                                                             number from which to extrapolate findings for the        • Elona Mortimer-Zhika, CEO, IRIS Software Group
and Areej Ahsan.                                                                                                                                                                  • Dealroom. (2020). 2020: a record year for UK tech.
                                                             entire population of 26,000 partners. Respondents        • James Baker, Alliances & Marketing Director, Softcat        Retrieved from: https://dealroom.co/reports/2020-a-
                                                             represented organisations ranging from 120
Methodology                                                  employees to approximately 15,000.
                                                                                                                      • James Crowter, CEO, Tecman                                  record-year-for-uk-tech

                                                                                                                      • Ken Charman, CEO, UFlexReward                             • Traux, D. (2020). Accelerate customers’ digital
The research team used a mixed method approach
                                                                                                                      • Mark Turner, Director, Cloud Business Unit, Claranet        transformation with the new Cloud Solution Provider
to build a model, scorecard and blueprint of                 Case studies – 12 case studies of large, medium
                                                                                                                                                                                    Program Guidebook. Retrieved from: https://blogs.
competitiveness among UK Microsoft Partner                   and small organisations within the UK Microsoft          • Paul Shannon, CEO, ANS                                      partner.microsoft.com/mpn/accelerate-customers-
Network organisations in the UK.                             Partner Network. Though drawn from the UK Partner        • Richard Hammond, CEO, Uncrowd                               digital-transformation-with-the-new-cloud-solution-
                                                             Network, the majority of the organisations featured      • Rocky Howard, CTO, Uncrowd                                  provider-program-guidebook/
                                                             in the case studies have a global presence.                                                                          • Traux, D. (2020). Become more data-driven with the
                                                                                                                      • Samantha Mudd, MD, Phoenix Software Ltd
                                                                                                                                                                                    new Partner Center Insights dashboard. Retrieved from:
                                                                                                                      • Simon Bennett, Business Unit Director, Tech Data
                                                             Scorecard and opportunity calculation – using                                                                          https://blogs.partner.microsoft.com/mpn/become-
                                                             the study findings as a benchmark on revenue             • Zak Virdi, Managing Director UK, Ireland and Africa,        more-data-driven-with-the-new-partner-center-
                                                             generation and a set of 13 conditional interventions       SoftwareONE                                                 insights-dashboard/
                                                             recommended to improve productivity and                                                                              • Schuster, G. (2020). 2021 priorities and opportunities for
                                                             accelerate competitiveness, the research team            Microsoft UK experts                                          the Microsoft Partner Network. Retrieved from: https://
                                                             calculated the total and mean revenue, total potential                                                                 blogs.partner.microsoft.com/mpn/2021-priorities-and-
                                                                                                                      • Clare Barclay, CEO
                                                             contribution of higher productivity per category                                                                       opportunities-for-the-microsoft-partner-network/
                                                                                                                      • James Chadwick, General Manager, Commercial Partner
                                                             of intervention (technology, future readiness,                                                                       • Mintel. (2020) Music and other Audio – CDs, steaming,
                                                             ecosystem, talent) and potential additional revenue      • Richard Ellis, Head of SMC UK                               downloads & podcasts: inc Impact of COVID-19.
                                                             offered by the capture of new markets for the entire     • David Leigh, MSP Lead, Commercial Partner                   Retrieved from: https://store.mintel.com/report/music-
                                                             UK Microsoft Partner Network.                            • Alex Smith, Director, Cloud Services Scale Partner,         and-other-audio-cds-streaming-downloads-podcasts-
                                                                                                                        Commercial Partner                                          inc-impact-of-covid-19-uk-december-2020

                                                                                                                                                                                                                                                 17
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