The South African Microsoft Solutions Partner Snapshot

Microsoft leads in cloud services, integrating Azure with Teams, SharePoint, Dynamics, Power Apps, and Office, creating a comprehensive platform. Azure’s growth, accounting for approximately 54% of total revenue in the 4^th quarter of 2023, highlights its importance. The demand for Azure is reflected in over 95% of Fortune 100 and 80% of Fortune 500 companies using it. Microsoft’s focus on AI, particularly through partnerships like with OpenAI’s Copilot, is set to expand its ecosystem even further. With over 400,000 businesses in its AI Cloud Partner Program, Microsoft’s influence spans globally, including over 700 providers servicing the South African market.

The Microsoft partner ecosystem is adapting to significant program updates, transitioning from the Microsoft Partner Network to the Microsoft Cloud Partner Program. This shift encourages partners to focus on Microsoft’s recurring revenue by specializing in at least one of six designated solution areas, moving from traditional SaaS to cloud-based solutions. Key updates include replacing legacy Gold and Silver competencies with Solutions Partner designations, ensuring partners are well-equipped to deliver on their promises with Microsoft products.

Since the announcement in March 2022, 339 Solution Partner designations have been obtained by 148 service providers or about 20% of Microsoft partners servicing the South African market. With just under half of these Solutions Partners holding more than one designation and less than 10% holding all six designations. The Modern Work designation is the most prevalent accounting for over 30% of Solution Partner designations obtained with more than 70% of Solutions Partners holding the designation. While the Business Applications designation is the least prominent, accounting for less than 10% of the Solution Partner designations obtained with less than 20% of Solutions Partners holding the designation.

Above the designated Solutions Partner level are Advanced Specializations, intended for partners aiming to secure more business and offer specialized services. These specializations denote superior technical proficiency and serve as a testament to a partner’s expertise. To qualify, a partner must already have Solutions Partner status and their employees must earn specific certifications, often requiring advanced training and examinations. 32 different Advanced Specialisations can be obtained by Solutions Partners across four specialisation areas.

Since March 2022, 230 Advanced Specialisations have been obtained by 43 Solutions Partners servicing the South African market, or less than 30%. With just under 60% of these Solutions Providers holding an Advanced Specialisation in more than one specialisation area and around 15% holding an Advanced Specialisation in all 4 specialisation areas. Azure is the most prominent specialisation area accounting for more than 40% of total Advanced Specialisations obtained, with more than 65% of all Solution Partners with an Advanced Specialisation obtaining at least one Azure advanced specialisation. Business Applications is the least prominent accounting for just over 10% of total Advanced Specialisations with less than 40% of the 43 Solution Partners with an Advanced Specialisation obtaining a Business Applications Advanced Specialisation.

The most Advanced Specialisations obtained is 19, achieved currently by two Solutions Partners. Just under half of the 43 Solutions Partners who obtained an advanced specialisation hold three or fewer. Threat Protection (Security) and Infra and Database migration to Microsoft Azure (Azure) are the most prominent Advanced Specialisations obtained with nearly half of the 41 Designated Solutions Partners obtaining one.  Interestingly, no Solution Partners holds the Business Intelligence (Business Applications) advanced specialisation or the Hybrid operations and management with Microsoft Azure arc (Azure). With the least prominent Advanced Specialisations obtained being Sales (Business Applications), Service (Business Applications) and Hybrid Cloud Infrastructure with Microsoft Azure Stack HCI (Azure).