Veronika Marsland Partner Development Manager
Apr 28,2021

Why Not Investing in a Power Platform Practice Is Leaving Money on the Table

With the low-code services market projected to reach $107 Billion in a couple of years, and the large app development backlog of many organizations, investing into a Power Platform practice is a huge opportunity for our partners.

Organizations Need to Adapt Their Processes or Face a Tough Road Ahead

Technical innovation is transforming our world at a fast pace. What was perceived as new a year ago is a fundamental building block today. Companies need to adapt to these rising expectations, or risk being left behind. In 2020, we saw rapid acceleration of digital transformation fueled by the pandemic. It became clear that enterprises that can turn their data into actionable insights, build intelligent business processes, and create a collaborative remote workplace are those that can adapt to changing customer demand and market conditions fast and thus survive these difficult times.

Yet on average 60-73% of all data within a company goes unused for analytic purposes[i]. On top of that, 37% of organizations are still using paper to manage critical business processes[ii], according to a Forrester report. The reason might not completely lie in not being aware of the risk of not improving business processes as the same report shows that 65% of organizations have an app development backlog[iii].

Partners Can Help Customers Transform Faster than They Would Alone

Enter low-code application development, a smart way to increase the speed with which enterprises can adapt and automate their business processes. However, they cannot do so alone. As the economy is dramatically shifting to digital the demand for technical professionals far outweighs the current supply. Organizations cannot staff their IT needs as fast as they arise[iv]. This creates an opportunity for our partners to build a new service practice and aid companies in transforming and automating their processes using Power Platform.

The Market Will Reach over $100 Billion in the Next 2 Years

In 2023, the global total addressable market for low-code apps will reach $51 Billion. Attached to that opportunity is the low-code services market, which is projected to reach $107 Billion in 2023[v] – a sizeable chance for our partners and their customers.

While Power Platform has the capability to span across all industry, we see the biggest opportunity in Business Services, Financial Markets & Insurance and Banking, Government and Media in Canada in FY21.

Partner Opportunity

Saving up to 70% of the development costs, our partners can tap into a long-tail of low-code development projects utilizing the skills of your professional and citizen developers to deliver customer projects with a rapid pace.

Partners who are already utilizing Power Platform have seen an explosive growth with their Power Apps practices. The average partner does multiple deals each year and expects a positive momentum in both licensing revenue and Power Automate services revenue in the coming years. To fuel this growth the average partner plans to hire new architects and developers.

Where Do I Start?

It is a well-known business fact that it is more expensive to acquire a new customer than retain a current one. By increasing your customer retention by just 5% you could increase your profitability up to 95% according to Forrester. The best place to start is with your existing customer base. You can optimize your existing Modern Workplace, Azure, or Dynamics 365 practice by extending your customers business solutions across the Power Platform.

·       Modern Workplace (Office 365, SharePoint and Teams)

Build apps and automate processes that extend Office 365 and Teams common productivity scenarios such as SharePoint lists and InfoPath forms. Integrate and share apps and workflows within Microsoft Teams. Unify your customers data and reduce time to impact.

·       Azure (AI, Data and Server Migration, Internet of Things)

Accelerate front end and business process development using low code. Integrate with rich services like Bot Framework and Azure Logic Apps to deliver advanced functionality and create custom connectors to ERP systems and other data sources.

·       Dynamics 365 (Suite of ERP & CRM applications)

Easily develop custom line of business applications with seamless integration to Dynamics 365 data. Build once and deploy apps in one click across iOS, Android, Windows, and Web.

Next Steps

As a next step, you should think about how you can diversify your revenue streams – for example by creating a solution development and consulting services arms within your business. Once you have created a business plan, it is time to train your employees to ensure they have the right skills and expertise and keep growing in their careers. A technical enablement roadmap should be a key component of a go-to-market business plan.

Next on the journey is opportunity generation. Finding common pain points across your existing customer base that could be solved with Power Platform is a good start. Focus on delivering simple applications and flows until you can create more complex solutions.

To reach more potential customers and to co-sell with Microsoft, you need to publish your low-code offer on one of our commercial marketplaces. As you work with customers you can help them to integrate their entire organizations by developing a Power Platform Center of Excellence. Of course, that is not the end of the journey. There will always be an opportunity for improvement, a need for governance, support services and reusable controls.

Summary

In summary, demand for low-code development is fueled by the digital transformation and organizations’ needs to adapt and become more resilient. Partners can significantly increase their revenue and profitability by extending their practice with Power Platform. Best place to start is the existing customer base. As partners build up their expertise on the platform, they can increase the number and complexity of the projects, publish an offer on our marketplaces so that they empower organizations to achieve more. For more information and resources visit the Power Platform partner hub.

[i] Forrester

[ii] Forrester, Q1 Digital Process Automation Survey (for process improvement efforts 2 years from now; Dresner Advisory Services, The State of Business Intelligence, 2018 (critical responses only)

[iii] Forrester, Q1 Digital Process Automation Survey (for process improvement efforts 2 years from now; Dresner Advisory Services, The State of Business Intelligence, 2018 (critical responses only)

[iv] Patrick Moorhead, Microsoft goes all-in on hybrid Cloud and Edge at Ignite 2019, citing Indeed survey, Forbes.com, Nov 2019

[v] Sources: Microsoft internal research, 2020; Forrester TEI, 2019 and Microsoft internal research, 2020