Microsoft's Gavriella Schuster On How To Boost Partner Margins, The Untapped Azure Opportunity And Why Microsoft Is A Better Cloud Partner Than Amazon

"The key to success at this moment in the technology revolution is having a unique differentiation and being able to make that repeatable."

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Do you have any insight on the margins and the profitability metrics that go into making this shift?

The first level of profitability metrics are about understanding what's driving your own profitability today. Resale margins, the smallest, and then if you are doing project services, you're going to get some larger margins but it depends how unique those project services are, how much specialization you bring to the services, then providing managed services enables you to then focus more on the customer lifetime value and extends the value delivery of what you can do with a customer and minimizes your customer acquisition cost because you have an ongoing relationship. Then having unique IP in the mix, -- not necessarily always just applications, but having unique IP in that mix -- can grow your margins upwards of 50 [percent] to 70 percent. It depends where you are on that spectrum, how much investment you've already made.

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