Microsoft Business Application Services – Riding the AI Waves
State of the Market Report

13 Aug 2024
by Shirley Hung, Yugal Joshi, Vignesh Kannan, Sangamesh Kadagad, Abhishek Mundra, AS Yamohiadeen, Arun Prateek, Shivam Kumar

Small and Midsize Enterprises (SMEs) are adopting Microsoft Business Applications to transform their operations, gain visibility, and manage end-to-end processes, including modernizing their customer experiences. In contrast, large enterprises leverage Microsoft Business Applications to strengthen their core systems by building on their existing systems.

The Microsoft Business Applications market is driven by a lower Total Cost of Ownership (TCO) and faster time-to-market. Enterprises adopt Microsoft Business Applications due to their AI integration with offerings and seamless connection with other Microsoft offerings. In response, providers are developing talent pools and building robust accelerators to support enterprises’ digital transformation journeys.

In this report, we analyze the Microsoft Business Applications services market, deal trends, and key enterprise demand trends, including gen AI. The report also offers key takeaways for enterprises and discusses implications for service providers.

Scope

  • All industries and geographies
  • This report is based on interactions with leading IT service providers and client reference checks as part of the Microsoft Dynamics 365 Services PEAK Matrix® Assessment

Contents

In this report, we:

  • Analyze the Microsoft Business Applications services market, highlighting market size split by geography, industry, product areas, and buyer size
  • Evaluate Microsoft Business Applications services deal characteristics, including spending across the value chain and deal trends analysis across geographies and industries
  • Examine key enterprise demand trends, including enterprise transformation areas, buyer satisfaction across key Microsoft Business Applications product areas, buyer imperatives, gen AI strategies across enterprise platforms, and AI transformation strategies for enterprises
  • Assess implications for service providers

Membership(s)

Enterprise Platform Services (EPS)

Sourcing and Vendor Management

 

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