Microsoft-related services: How providers grow with Dynamics, AI, cloud, and analytics

Microsoft-related services: How providers grow with Dynamics, AI, cloud, and analytics

Microsoft is one of the five major platforms that teknowlogy | PAC analyzes in its research cluster dedicated to enterprise application-related services, the others being Oracle, SAP, Salesforce, and Workday. Microsoft is the most comprehensive software platform, covering most of the technologies companies need.

Microsoft has also been undergoing a tremendous transformation in many ways, becoming a leading player in many of the digital topics (cloud, data analytics, and artificial intelligence), as well as a platform provider.

We recently published an InBrief report about how the Microsoft-related services business is driven by Microsoft Azure, AI and app modernization. This report mainly addresses service providers that already work with Microsoft or plan to do so. Our report analyzes what these four main topics mean for Microsoft partners in terms of opportunities and challenges:

  • Modernization of applications leveraging cloud technologies, AI as well as modern app development methods
  • Data management, analytics & AI
  • Microsoft’s business applications
  • Industry-specific solutions

Rankings of Microsoft Dynamics partners

Even if Microsoft’s business application revenues are small compared to the vendor's overall portfolio, a large and complex ecosystem of partners has emerged that provide services for Dynamics solutions (ERP and CRM).

The Microsoft business apps used to be regarded as a good fit for medium or small companies. But this is no longer the case as the wide range of other Microsoft products (digital workplace, analytics, AI, and cloud) make the solutions a good choice for large enterprises as well, which is especially true for Dynamics CRM. Moreover, service partners and ISVs continue to develop verticalized solutions that better fit customers’ requirements.

Due to the increasing relevance of the Dynamics-related services business, we decided to publish for the first time rankings (based on annual revenue) of providers that offer consulting and systems integration services for Microsoft Dynamics at worldwide and EMEA levels. Creating such rankings for this market is not that easy as the market is highly fragmented. There is a very large number of very small local companies that offer Dynamics services only, and there are global systems integrators that continue to expand their Microsoft practices.

Our top 10 worldwide

Looking at our rankings, Accenture is the largest service partner for Dynamics worldwide, as it is for the other large enterprise platforms (SAP, Oracle, Salesforce, etc.). The vendor has been active in this space for quite some time, ever since it launched a joint venture (Avanade) with Microsoft dedicated to the Dynamics portfolio. In addition, it has established a dedicated Microsoft Business Group.

The top 10 Microsoft Dynamics service providers are dominated by global players such as DXC Technology, Capgemini, IBM, and CGI. Among the top 10-20, you will find mainly specialized systems integrators, e.g. Prodware, Columbus, or AlfaPeople.

Another group of service providers worth mentioning are the Big Four accounting firms – EY, Deloitte, KPMG, and PwC. Although they started to expand their Microsoft Dynamics activities later than their competitors from the systems integration segment, they have managed to come closer in terms of revenue. The four vendors recorded the highest growth rates among the top 20 players at global level. This is because they heavily invested in their Dynamics-related portfolio of services, including the acquisition of smaller specialists (e.g., EY bought Sonoma Partners).

At EMEA level, you will find some global players, as in the worldwide rankings. However, there are also many smaller players.