October 20166 | | June 20155CIOReviewEditor-in-ChiefManaging EditorEditorial StaffSales Mailing AddressTo subscribe to APACCIOOutlookVisualizersAPACCIOOutlook44790 S. Grimmer Blvd Suite 202, Fremont, CA 94538Visit www.apacciooutlook.comVignesh KarthigaisamyShravan KashyapStephen ThomasLarry KohenRachi V SharmaCopyright © 2016 ValleyMedia Inc. All rights reserved. Reproduction in whole or part of any text, photography or illustrations without written permission from the publisher is prohibited. The publisher assumes no responsibility for unsolicited manuscripts, photographs or illustrations. Views and opinions expressed in this publication are not necessarily those of the magazine and accordingly, no liability is assumed by the publisher thereof.October 17 2016, Volume 2 SE 50 Published by ValleyMedia Inc.Shivali SharmaAnnie JohnsonRandy GomezStephanie MazueraSudeshna MazumdarAshwani KumarSandra Lopezsandra@apacciooutlook.com852.8191.6185Robin Mathewrobin@apacciooutlook.com852.8199.0346Editorial`Digital transformation' has undoubtedly been the buzz word of this season and rightfully so. With the widespread proliferation of mobile devices, especially across Asian countries, staying connected to consumers has become a business imperative. With its cloud first strategy, Microsoft has been actively driving digital transformations not just for large corporations but for SMBs across APAC as well. One of the organization's biggest strengths has been its strong Microsoft Partner Network in APAC; with 38,300 registered partners and hundreds of thousands more transacting through Microsoft's distribution channels. Microsoft does 90 percent of its business through its partner ecosystem and it is this strong vendor network that has been assisting SMBs across Asia to leverage the benefits of cloud. The current situation of the Asian cloud market also presents an interesting opportunity for Microsoft service providers to embark on a journey towards greater market capitalization. According to an IDC report, the Asian cloud market is growing at 20 percent per year but 45 percent of the SMBs are still in the nascent stages of their digital transformation. 33 percent of Asian enterprises are positive about pursuing a cloud first strategy, with overall IT budgets dedicated to cloud services increasing to 26 percent by 2016. It is clear that companies are looking to make the transition as soon as possible, which doubles up as a challenge as well as an opportunity for Microsoft partners.In times like these, it is imperative for vendors to focus on cloud. A Microsoft-commissioned IDC research concluded that partners who have grown their cloud business to more than 50 percent of their overall revenue generated at least $5.87 for every $1 of Microsoft solution sold. According to another IDC study, cloud partners in Asia Pacific make 1.8x more revenue and 1.4x more gross margin than their non-cloud oriented partners. Needless to say, this is a call for Microsoft solutions providers to pull up their socks and make the most of the opportunity. Do let us know your thoughts.Rachi V SharmaManaging Editoreditor@apacciooutlook.comMicrosoft Vendors Going Cloud First To Enable Digital Transformation
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