Microsoft's Revamp in Partner Programs and the Cloud
Microsoft recently announced significant changes to its partner programs, causing a stir among its partners. Effective January 21, 2025, Microsoft is discontinuing the Microsoft Action Pack and Microsoft Learning Pack, which have been fundamental tools for partners, offering cost-efficient access to Microsoft software.
Instead, Microsoft is encouraging partners to transition to more costly cloud-based subscriptions such as the Partner Success Core Benefits and Partner Success Expanded Benefits. This shift signals a deliberate move towards prioritizing cloud services over on-premises solutions.
However, this change comes with a potential downside – some partners may face a substantial increase in costs, with one partner noting a nearly doubled expense from £390 + VAT to £735 + VAT. Additionally, the transition poses challenges for customers reliant on older software.
To sweeten the deal, Microsoft is introducing over 20 new product licenses, including innovative offerings like Microsoft Copilot and GitHub. Despite these changes, partners still have the option to renew their existing Action Pack until January 21, 2025, granting them an additional year of usage.
While these developments may come as a surprise, Microsoft had hinted at these revisions earlier in the year with the launch of new benefits packages. This move aligns with the tech giant's overarching strategy to prioritize cloud services and artificial intelligence.
Key Takeaways
- Microsoft discontinues Action Pack and Learning Pack, effective January 21, 2025.
- Partners urged to shift to more expensive cloud-based subscriptions.
- Costs could rise from £390 + VAT to £735 + VAT for some partners.
- Microsoft promises over 20 new product licenses, including Microsoft Copilot and GitHub.
- Partners can renew existing Action Packs until January 21, 2025, extending access for a year.
Analysis
Microsoft's discontinuation of Action Pack and Learning Pack, shifting partners to cloud-based subscriptions, will likely boost its cloud revenue but may strain smaller partners due to increased costs. This strategic move reflects Microsoft's commitment to cloud and AI advancements, potentially disadvantaging partners reliant on on-premises solutions. Short-term, partners face financial adjustments and operational shifts; long-term, this could solidify Microsoft's cloud dominance but also push some partners towards alternative platforms, impacting Microsoft's partner ecosystem diversity.
Did You Know?
- Microsoft Action Pack and Microsoft Learning Pack
- Explanation: These were subscription programs designed for Microsoft partners, providing them with a suite of Microsoft software licenses and training resources at a reduced cost, emphasizing on-premises solutions.
- Partner Success Core Benefits and Partner Success Expanded Benefits
- Explanation: These are new subscription models introduced by Microsoft to replace the discontinued programs, focusing on cloud-based services and aiding partners in adapting to cloud-centric business models.
- Microsoft Copilot
- Explanation: Microsoft Copilot is an AI-powered assistant aimed at enhancing productivity and streamlining workflows across Microsoft products, aligning with Microsoft's broader AI integration initiative.