Meeting with partners is the most important part of my job and the most meaningful aspect of what I do. However much we innovate in Redmond and map our vision for a new cloud-first world, the reality of the marketplace rests squarely on the shoulders of partners. So hearing about your opportunities and successes is very valuable to me. I’ve always been proud of the learning culture at Microsoft, and as a partner-first company, your voice is not only heard, but I can attest that it has impact across the company.
I recently returned from a trip to Latin America, where I visited partners in Sao Paulo, Brazil and Santiago, Chile.
The market opportunity we have in LATAM, particularly in the cloud, is fantastic. The Brazilian cloud computing market is expected to grow exponentially over the next five years, with the SMB segment expected to generate approximately 45% of cloud revenue (6 million SMBs in Brazil). In the local Brazilian market, for example, we have a strong install base, and our Azure deployments are growing at an accelerating pace. I had many meetings with Microsoft leaders in Brazil and Chile, all focused on partner opportunity, resources and profitability. But partner meetings were the most exciting aspect of the trip for me because I got to hear first-hand your success stories and customer wins. The innovation you are undertaking on behalf of our joint customers is incredible to see and bodes very well for our shared future in this cloud-first world.
I met with Lauro Batista, CTO from partner company Axter, who started as an infrastructure solution partner 4 years ago. They were early movers to cloud with both Microsoft and BPOS and then partnered with Amazon around the same time. Their Office 365 business took off, and they invested further, looking at other opportunities in cloud. They are now offering Azure instead of AWS for almost 100% of their new customers. Axter is now one of the most specialized partners in our cloud platform in Brazil.
I thought you might appreciate seeing the key insights Lauro shared with me as you consider the transformation of your own businesses:
- Adapt your go to market to be cloud based, a different business model, diminish geographical barriers
- The deal margin for cloud is bigger than on premise
- Repeatable IP pays dividends as a way of sustaining growth
Across Latin America I saw keen partner interest about how to grow a profitable cloud business and excitement for the innovation Microsoft is delivering. I want to encourage all of you to check out the resources available to help you grow your business in the most profitable ways, including P&L Models and Cloud SureStep
. We are building more of these kinds of resources to support you in your cloud aspirations.
We strive every day to make Microsoft your best business decision. Your feedback is always appreciated. Please keep it coming.
Heading to Mexico and Canada next….more insights, more improvements, more to come.