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Total Economic Impact
A Total Economic Impact™ Partner Opportunity Analysis
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY Microsoft, December 2025
Total Economic Impact
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY Microsoft, December 2025
In B2B organizations with complex partner ecosystems, Forrester identifies that the partner’s journey is one of the cornerstones of partner ecosystem success.1 Enablement is a critical phase in the partner journey to meet partner revenue and growth goals.2 Microsoft consistently invests resources into both global system integrators (GSI) and global channel sales (GCS) partners to help them succeed in the highly competitive market. GSI and GCS partners can experience accelerated profit growth with Microsoft’s skilling and enablement program.
Microsoft’s skilling and enablement program is designed to expand partners’ capabilities across technical and sales roles, with an emphasis on certification, hands-on learning, and AI readiness. It builds on foundational certification efforts and introduces advanced, role-based learning experiences.
Microsoft commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential business opportunity and return on investment (ROI) partners may realize by participating and scaling the Microsoft skilling and enablement program. The purpose of this study is to provide potential and existing partners with a framework to evaluate the potential business opportunity associated with having employees trained and certified.
To better understand the revenue streams, investments, and risks associated with Microsoft’s skilling and enablement program, Forrester interviewed 11 representatives of 10 existing GSI and GCS partners with experience with Microsoft skilling and enablement programs. These interviewees were Microsoft GSI and GCS partners that provided services across Microsoft’s core solution areas such as AI, Security, M365, Data and Infrastructure, Business Applications, and Modern Work. Their offerings include cloud migration, AI innovation, cybersecurity, low-code development, and advanced skilling programs aligned with Microsoft technologies. To illustrate the financial impact and subsequent partner business opportunity, Forrester aggregated the characteristics of these interviewees and combined the results into a single composite partner organization, which is a Microsoft GSI partner with 80,000 employees globally.
Before working with Microsoft on skilling and enablement, partner organizations faced fragmented internal training, legacy skill sets, and inefficient enablement cycles, limiting their ability to meet client demands and RFP requirements. Challenges included high training costs, inefficient staffing, retention issues, and lack of scalable platforms.
With Microsoft’s support, the interviewees’ partner organizations scaled training across thousands of employees, improving project efficiency, retention, and revenue growth. Certifications enhanced client trust, deal qualification, and renewal rates, while hands-on learning and sales enablement boosted productivity and business transformation.
Revenue opportunities. The composite partner organization captures the following revenue streams, which are representative of those experienced by interviewees’ organizations:
Improvement in win rate by 10% per year. The trained and certified sales and development teams at the composite partner organization attain a deeper understanding of Microsoft services and products, allowing them to better customize offers to fit clients’ business needs. Over three years, this improvement in win rate is worth $49.0 million to the composite partner organization.
Increase in average deal size by up to 6.1% per year from customer upsell and cross-sell. The sales team members and developers who have been through Microsoft’s skilling and enablement program uncover more pain points and the needs of existing customers. The composite partner organization often experiences larger deal sizes with more returning customers. Over three years, this increase in average deal size is worth $9.0 million to the composite partner organization.
Ability to create new offerings and capabilities that add additional revenue of 5% per year. Microsoft’s skilling and enablement offerings provide systematic information on new products or services. Employees in the composite partner organization quickly capture the market opportunity for new products or services and acquire skills necessary to deliver projects around these products and services. Over three years, this expansion into new offerings and capabilities is worth $3.7 million.
Key operational efficiency improvement. In addition to revenue benefits, the composite partner organization also realizes operational efficiency gains, including:
Improved project delivery speed by up to 20% per year. Skilled and knowledgeable employees deliver projects faster with efficiency lifting. Consequently, the composite partner organization enjoys decreased project delivery costs, which translate to higher gross margins. Over three years, the faster project delivery equals $37.6 million of increased gross profits.
Unquantified benefits. Benefits that provide value for the composite partner organization but are not quantified for this study include:
Improved employee confidence and engagement. Microsoft’s skilling and enablement program boosts individual employees’ confidence, especially when engaging with clients. Certified employees feel more empowered to contribute to solutioning and decision-making.
Increased employee retention. Microsoft certifications are seen as a career asset. The composite partner organization invests in skilling to foster loyalty and reduce attrition.
Improved operational efficiency and reduced errors. Besides faster delivery, the composite partner organization reduces its error rate when delivering services, which is critical for maintaining the organization’s brand and reputation.
Investments. To realize the revenue and operational efficiency benefits from Microsoft skilling and enablement, the composite partner organization also invests in:
Training program setup and ongoing management. The internal resources of the composite partner organization spend time building and managing the training program, including monitoring progress towards training objectives.
Cost of learning time dedicated to Microsoft skilling and enablement program. This is an opportunity cost for the composite partner organization as the employees take time dedicated to participating in training courses and joining bootcamps and Hackathons.
Microsoft certification test fee. Microsoft covers most of the certification fees while the composite partner organization incurs some costs for employees who take certification tests.
The representative interviews and financial analysis found that a composite partner organization experiences total present value (PV) gross profits of $99.2 million over three years versus investments of $31.3 million, adding up to a net present value (NPV) of $67.9 million and an ROI of 217%.
Win rate improvement
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| PL0 | Total revenue | Composite | $982,520,000 | $1,082,369,200 | $1,191,818,320 |
| PL1 | Incremental revenue increase from improved win rate | A6 | $60,000,000 | $66,000,000 | $72,000,000 |
| PL2 | Additional revenue from additional contract value | B5 | $9,900,000 | $11,979,000 | $14,603,400 |
| PL3 | Additional revenue from new market opportunity with Microsoft Skilling and Enablement program | C4 | $4,466,000 | $4,919,860 | $5,417,356 |
| PL4 | Total revenues | PL0+PL1+PL2+PL3 | $1,056,886,000 | $1,165,268,060 | $1,283,839,076 |
| PL5 | Cost of goods sold | 70%*PL4 | $739,820,200 | $815,687,642 | $898,687,353 |
| PL6 | Incremental gross profit increase from faster delivery | Dt | $3,438,820 | $11,364,877 | $33,370,913 |
| PL7 | Total gross profit | PL4-PL5+PL6 | $320,504,620 | $360,945,295 | $418,522,636 |
| PL8 | Total gross margin | PL7/PL4 | 30.33% | 30.98% | 32.60% |
| PL9 | Training program setup and ongoing management | Et | $216,000 | $129,600 | $129,600 |
| PL10 | Time investment for training | Ft | $12,350,000 | $12,350,000 | $12,350,000 |
| PL11 | Certifications test fee | Gt | $55,050 | $55,050 | $55,050 |
| PL12 | Total operating investments | PL9+PL10+PL11 | $12,621,050 | $12,534,650 | $12,534,650 |
| PL13 | Operating profit | PL7-PL12 | $307,883,570 | $348,410,645 | $405,987,986 |
| PL14 | Operating margin | PL13/PL4 | 29.13% | 29.90% | 31.62% |
Return on investment (ROI)
Gross margin
Operating margin
Payback
| Role | Partner Type | Employees | Certifications Achieved |
|---|---|---|---|
| Director of global alliance business development | GSI | 80,000 | 26,000 |
| SVP | GSI | 223,000 | 23,000 (9,000 in FY25) |
| Innovation and enablement leader | GSI | 360,000 | 46,000 (15,000 in FY25) |
| Solution advisor | GSI | 190,000 | 18,000 (7,000 in FY25) |
| Microsoft practice lead | GSI | 743,000 | 130,000 (20,000 in FY25) |
| VP of ecosystem and partnership | GSI | 233,000 | 12,000 (3,000 in FY25) |
| VP | GCS | 15,000 | — |
| Senior director | GCS | 2,000 | — |
| Global cloud commercial lead | GCS | 28,000 | 454 in FY25 |
|
• Director of partner strategy • Head of certification |
GCS | 127,000 | 3.000 |
Interviewees’ partner organizations were diverse in size, backgrounds, functional and vertical specializations, types, and degrees of engagement with Microsoft. They partnered with Microsoft to build and scale their skilling and enablement program for a myriad of reasons, including the following:
Leadership belief in skilling as a business enabler. Across all interviewees, their organizations’ leadership consistently emphasized the strategic importance of skilling. Executives viewed training not merely as a compliance or HR initiative, but as a direct contributor to business outcomes such as revenue growth, operational efficiency, and innovation. The director of global alliance business development at a GSI partner organization shared: “Our company holds the Azure MSB certification. That’s absolutely critical for any company that wants to get in business.”
Individual motivation to upskill and demonstrate expertise. Interviewees said their employees were highly motivated to pursue certifications and training. Certifications and credentials served as a universally recognized benchmark of expertise, enhancing employability, career mobility, and professional pride. The director of global alliance business development at a GSI partner organization commented, “Employees want to skill themselves up so that they have a good-looking CV — when they’re finished with this project, they’ll get picked right off the bench.”
Internal promotion and career mobility. Skilling programs were often integrated into talent development frameworks, enabling employees to transition into new roles or advance within their current domain. The SVP at a GSI partner organization said, “You are not going to get the best promotions and maybe the next best performance badge if you’re not able to show that you’re skilled [or that] you’ve taken the time and effort to skill yourself.” The senior director at a GCS partner organization shared that their company used Microsoft certification and credentials as part of its internal mobility strategy, allowing employees to move across departments while maintaining relevance in Microsoft-related work. This approach not only retained talent but also ensured that employees were equipped to contribute meaningfully in new contexts, reducing onboarding time and increasing organizational agility.
Well-defined and structured programs offered by Microsoft. According to interviewees, Microsoft offered a comprehensive portfolio of skilling and enablement programs, including foundational certifications and role-based certifications, hands-on labs, hackathons and boot camps, and sales enablement workshops. These programs were aligned with Microsoft’s solution areas. Partners appreciated the clarity and consistency of Microsoft’s offerings, which simplify planning and execution.
Strategic agreements to upskill the workforce. Many interviewees said their partner organizations entered formal agreements with Microsoft that included skilling targets, certification quotas, and joint enablement initiatives. These agreements often came with Microsoft support including vouchers and sandbox environments. The solution advisor at a GSI partner organization shared: “We have an estate agreement with Microsoft, which kicked off about two years ago. … Part of the agreement that we locked down with Microsoft for the three-year agreement is that we are going to have 18,000 net-new certifications.” These partnerships reduced the financial and logistical burden on the interviewees’ organizations, enabling large-scale skilling at a fraction of the typical cost.
Building trust and credibility with clients. Interviewees’ clients increasingly expected their service providers to demonstrate technical proficiency through certifications and hands-on experience. Certifications served as a proxy for trust, especially in emerging areas like AI, security, and cloud modernization. The SVP at a GSI partner organization said: “Our customers ask us, ‘How many people [do you have?] Are these people skilled? Are these people certified? You can’t work on my account if you’re not certified.’ So, our delivery teams know that this is a part of doing business well.” While certifications alone may not win deals, they were often a prerequisite for consideration. Interviewees said they also enhanced the credibility of delivery teams during client interactions, enabling more confident and informed conversations.
Demonstrating skills in new technology domains. In fast-evolving fields like AI, interviewees’ clients looked for partners who were not only familiar with the technology but also capable of applying it effectively. Microsoft’s skilling programs helped partners stay ahead of the curve, preparing teams before products reach general availability. The director of global alliance business development at a GSI partner organization shared, “We would not win the business in a lot of these newer areas that are not legacy if we didn’t have the skills.” This readiness enabled partners to capture early market share, deliver innovative solutions, and position themselves as thought leaders.
Based on the interviews, Forrester constructed a TEI framework, a composite partner company, and an ROI analysis that illustrates the areas financially affected. The composite partner organization is representative of the interviewees’ partner organizations, and it is used to present the aggregate financial analysis in the next section. The composite partner organization has the following characteristics:
Description of composite. The composite partner organization is a GSI partner organization with 80,000 employees worldwide. In its Microsoft project portfolio, 75% of the revenue is related to Microsoft cloud migration, security, and Microsoft 365 projects. Twenty percent of the revenue is related to Business Application projects, and the rest is emerging products and services, especially AI-related projects. The composite partner organization operates on a 30% gross profit margin. The average contract revenue (ACV) for projects that the Microsoft skilling and enablement program directly impacts is $2 million.
Deployment characteristics. In the composite partner organization, 3,000 employees are Microsoft-certified at foundational level while 1,500 employees are Microsoft-certified at advanced level. Each year, 1,000 employees join the Microsoft bootcamps, and another 500 employees join hackathons.
80,000 employees
$2 million ACV
30% gross profit margin
| Ref. | Revenue Stream | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Incremental gross profit increase from improved win rate | $18,000,000 | $19,800,000 | $21,600,000 | $59,400,000 | $48,955,672 |
| Btr | Incremental gross profit increase from upselling and cross-selling customers | $2,970,000 | $3,593,700 | $4,381,020 | $10,944,720 | $8,961,525 |
| Ctr | Incremental gross profit increase from new offerings and capabilities | $1,339,800 | $1,475,958 | $1,625,207 | $4,440,965 | $3,658,842 |
| Dtr | Incremental gross profit increase from faster delivery | $3,438,820 | $11,364,877 | $33,370,913 | $48,174,610 | $37,590,721 |
| Total gross profit (risk-adjusted) | $25,748,620 | $36,234,535 | $60,977,140 | $122,960,295 | $99,166,760 |
Evidence and data. Across multiple Microsoft partners, interviewees consistently cited their skilling and enablement program as an enabler of deal conversion and competitive differentiation. Interviewees shared that, while certifications alone didn’t guarantee a win, they were often a deal qualifier and a trust builder that increased the likelihood of winning, especially in competitive or emerging technology areas like AI and Copilot. They noted a clear correlation between employee skill levels and business success. The VP at a GCS partner organization stated, “The companies that have very well-skilled employees tend to win more business.”
Different interviewees mentioned that certifications were often required in RFPs as without them, partners could be disqualified from bidding. The innovation and enablement leader at a GSI partner organization shared: “Most of the time the clients would ask us to prove that we’ve got certain amount of certified technical folks in this area. And if we can run a report and show them that, then we win the deal.” The SVP at a GSI partner organization also noted, “We know that there are deals that we have been disqualified for ... because we have not had enough certified people in a certain country.”
Interviewees said that training helped delivery professionals build confidence and credibility in client conversations, indirectly improving the chance of winning deals. In emerging tech areas, certifications could be a decisive factor in winning deals. The Microsoft practice lead at a GSI partner organization shared: “On the new technology front, I would say [certifications are] very critical. ... Impact-wise, it is very critical because it’s a decision-maker many times.” Several interviewees estimated a 5% to 10% increase in win rate due to certifications, especially in newer solution areas.
Interviewees shared customer trust was also critical for their partner organizations to increase win rate. With certified and trained team members, the partner organizations delivered better services to clients, which translated into higher win rates. The SVP at a GSI partner organization said, ““It’s 20% to 30% [of the trust factor] that comes from Microsoft learning programs.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite partner organization:
The composite partner organization bids on 1,000 Microsoft projects related to migration, security, and M365 in Year 1. These are specifically proposals for Microsoft services which give the composite partner organization 75% of the revenue per year. The workloads are significantly influenced by the content of Microsoft skilling and enablement program training.
The average win rate on these proposal bids is 30%.
With both sales and technical workforce going through Microsoft skilling and enablement training, the closed win rate increased by 10%.
The ACR of those projects is $2 million. The gross profit margin of the projects is 30%.
Risks. There are no risks involved that would impact this benefit.
Results. To account for these risks, the incremental gross profit increase from improved win rate reached a total PV of $49.0 million.
Improvement in win rate
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Microsoft-related project (Migration, security, M365) proposals sent per year | Composite | 1,000 | 1,100 | 1,210 | |
| A2 | Average win rate for Microsoft-related projects | Composite | 30% | 30% | 30% | |
| A3 | Improvement in win rate due to a Microsoft skilling and enablement program | Interviews | 10% | 10% | 10% | |
| A4 | Incremental project won due to a Microsoft skilling and enablement program | A1*A2*A3 | 30 | 33 | 36 | |
| A5 | Average annual contract revenue (ACR) | Composite | $2,000,000 | $2,000,000 | $2,000,000 | |
| A6 | Incremental revenue increase from improved win rate | A4*A5 | $60,000,000 | $66,000,000 | $72,000,000 | |
| A7 | Gross margin | Composite | 30% | 30% | 30% | |
| At | Incremental gross profit increase from improved win rate | A6*A7 | $18,000,000 | $19,800,000 | $21,600,000 | |
| Risk adjustment | 0% | |||||
| Atr | Incremental gross profit increase from improved win rate (risk-adjusted) | $18,000,000 | $19,800,000 | $21,600,000 | ||
| Three-year total: $59,400,000 | Three-year present value: $48,955,672 | |||||
Evidence and data. Interviewees consistently said that the Microsoft skilling and enablement program helped create deeper customer engagement, allowing sales and delivery teams to identify new opportunities within existing accounts, increase deal size by layering additional services, and accelerate cross-selling motions by showcasing technical and business expertise.
According to interviewees, the offerings within the skilling and enablement program helped delivery team members build credibility, which led to upselling during ongoing engagement with clients. The Microsoft practice lead at a GSI partner organization shared: “[Microsoft training] helps us get the follow-through, what we call ‘sell while deliver.’ You sell because you are doing good delivery work.”
Some interviewees noted that their Microsoft partner organizations also worked with resellers to expand their client base. The Microsoft skilling and enablement program became more critical for those partners to support their resellers to serve the end customers. Interviewees reported that skilling and enablement program helped resellers expand scope and cross-sell more effectively. The senior director at a GCS partner organization shared: “We’re able to get more projects in because we’re doing a better job of helping our reseller understand what and why that product goes into a project. We’re seeing more of the ROI [of training] on the deal size and the upselling.”
Several interviewees shared that the skilled team members were more likely to expand engagement through upselling and cross-selling. The VP at a GCS partner organization commented: “It’s all about recurring revenue. ... Microsoft’s training to focus on modernization allows partners to stay engaged longer. The companies that have very well-skilled employees tend to win more business.”
The VP also emphasized: “Modernization projects can grow 30% to 40% in size due to certified teams. About 20% to 30% of that growth is credited to skilling programs.” This demonstrated how Microsoft skilling and enablement program contributed to project expansion. Certified team members were more trusted by clients, which enabled larger scopes and more strategic engagements.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite partner organization:
For Microsoft projects related to migration, M365, and security, the ACR per year is $2 million.
After going through a Microsoft skilling and enablement program, the ACR increases by 5% in Year 1, 5.5% in Year 2, and 6.1% in Year 3. This gradual growth is assumed to be a product of an increasing number of team members that are trained and certified as well as the increased familiarity of Microsoft offerings and the value they provide.
With the growth of projects, 30% of them upsell and cross-sell each year.
The average gross profit margin of those projects is 30%.
Risks. There are no risks involved that would impact this benefit.
Results. Over three years, the incremental gross profit increase from the higher average deal size due to upselling and cross-selling customers reached a total PV (discounted at 10%) of $9.0 million.
ACR increase by Year 3
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Average ACR on migration, M365, and security projects | A5 | $2,000,000 | $2,000,000 | $2,000,000 | |
| B2 | Percentage increase in ACR due to a Microsoft skilling and enablement program | Interviews | 5.0% | 5.5% | 6.1% | |
| B3 | Microsoft-related projects won per year | A1*A2+A3 | 330 | 363 | 399 | |
| B4 | Percentage of projects with upselling and cross-selling | Composite | 30% | 30% | 30% | |
| B5 | Additional revenue from additional contract value | B1*B2*B3*B4 | $9,900,000 | $11,979,000 | $14,603,400 | |
| B6 | Gross margin | A7 | 30% | 30% | 30% | |
| Bt | Incremental gross profit increase from upselling and cross-selling customers | B5*B6 | $2,970,000 | $3,593,700 | $4,381,020 | |
| Risk adjustment | 0% | |||||
| Btr | Incremental gross profit increase from upselling and cross-selling customers (risk-adjusted) | $2,970,000 | $3,593,700 | $4,381,020 | ||
| Three-year total: $10,944,720 | Three-year present value: $8,961,525 | |||||
Evidence and data. Microsoft skilling and enablement program played an important role in enabling the interviewees’ partner organizations to unlock new revenue streams by equipping their workforce with the capabilities needed to deliver emerging technologies and solutions. Across various interviewees’ partner organizations, the program accelerated readiness for innovations such as Azure modernization, Copilot, generative AI (genAI), and security services.
Interviewees consistently reported that certifications and hands-on enablement allowed them to respond quickly to market demand, especially during the critical window following new product launches. This agility translated into increased deal qualification, faster project delivery, and expanded service portfolios. For example, the global cloud commercial lead at a GCS partner organization attributed up to 30% of their organization’s 35% revenue growth in new services to skilling and enablement efforts.
Moreover, interviewees said that the program helped partners develop new offerings, such as managed services, AI-driven automation, and industry-specific solutions. These capabilities not only generated net-new revenue but also improved renewal rates and customer retention. The global cloud commercial lead also shared: “We did a particular intensive enablement training in the Netherlands and the UK. ... After we went through that journey and practice builders, the growth of revenue was very significant.”
Skilling and enablement programs contributed to partner organizations’ revenue resilience and growth. The partner office lead at the GCS organization shared, “In the last three years, our business with Microsoft has increased ... at double-digit growth ... while overall B2B revenue declined.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite partner:
The composite partner organization has an annual revenue of $893.2 million in the Year 1, $984.0 million in the Year 2, and $1.1 billion in the Year 3.
Ten percent of the revenue is related to Microsoft new offerings and capabilities. Among the new revenue stream, 5% is attributed to Microsoft skilling and enablement programs.
The gross margin of the average Microsoft service-related projects is 30%.
Risks. There are no risks involved that would impact this benefit.
Results. Over three years, the incremental gross profit increase from new offerings and capabilities reached a total PV (discounted at 10%) of $3.7 million.
New revenue stream growth
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Annual revenue related to Microsoft services | Composite | $893,200,000 | $983,972,000 | $1,083,471,200 | |
| C2 | New market opportunities growth rate | Interviews | 10% | 10% | 10% | |
| C3 | Percentage of new revenue stream growth attributed to a Microsoft skilling and enablement program | Interviews | 5% | 5% | 5% | |
| C4 | Additional revenue from new market opportunity with a Microsoft skilling and enablement program | C1*C2*C3 | $4,466,000 | $4,919,860 | $5,417,356 | |
| C5 | Gross margin | A7 | 30% | 30% | 30% | |
| Ct | Incremental gross profit increase from new offerings and capabilities | C4*C5 | $1,339,800 | $1,475,958 | $1,625,207 | |
| Risk adjustment | 0% | |||||
| Ctr | Incremental gross profit increase from new offerings and capabilities (risk-adjusted) | $1,339,800 | $1,475,958 | $1,625,207 | ||
| Three-year total: $4,440,965 | Three-year present value: $3,658,842 | |||||
Evidence and data. Interviewees said that Microsoft skilling and enablement programs improved project delivery efficiency across their partner organizations by accelerating workforce readiness, reducing onboarding time, and enhancing delivery quality. The program equipped their technical teams with up-to-date knowledge and hands-on experience, enabling them to respond quickly to evolving client needs and emerging technologies.
Interviewees consistently reported that certified individuals ramp up faster, require less supervision, and were more confident in solving real-world problems. Structured learning paths, especially those combining certification, bootcamps, and sandbox-based hackathons, were found to be the most impactful. These formats allowed employees to move beyond theoretical understanding and gain practical experience in a safe, simulated environment, which translated directly into smoother project execution. The Microsoft practice lead at a GSI partner organization commented, “We’ve seen a 10% to 20% productivity lift for individuals who go through the full cycle — certification, bootcamp, and real-life project.”
According to interviewees, bootcamps and hackathons, often codeveloped with Microsoft, were particularly effective for new technologies like Copilot and Gen AI. These immersive formats helped delivery teams internalize complex concepts, experiment with prototypes, and build confidence before engaging with clients.
While certifications alone provided foundational knowledge, interviewees emphasized that real efficiency gains came from combining certifications with hands-on training and contextualized learning. The director of partner strategy at a GCS partner organization shared: “With certified teams, we can deliver projects faster and with fewer errors. That’s a big deal for renewals and client satisfaction.” The VP at the GSC partner organization shared, “The most effective programs were those tailored to specific client scenarios and delivered in short, modular formats.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite partner organization:
With the increase of win rates, upsell and cross-sell, and new revenue streams, the total revenue related to all Microsoft projects is $983.0 million in Year 1, $1.1 billion in Year 2, and $1.2 billion in Year 3.
With an increasing number of team members going through Microsoft skilling and enablement programs, especially those with advanced certifications and project-based training, more and more highly skilled team members deliver the project work. In Year 1, 10% of team members with advanced certifications work on Microsoft projects, increasing to 20% in Year 3.
The increased efficiency and resulting time savings in project delivery due to Microsoft skilling and enablement programs is 5% in Year 1, 10% in Year 2, and 20% in Year 3.
The original gross profit margin of Microsoft-related projects is 30%.
Risks. There are no risks involved that would impact this benefit.
Results. Over three years, the incremental gross profit increase from faster delivery reached a total PV (discounted at 10%) of $37.6 million.
Delivery team efficiency lifting by Year 3 with Microsoft advanced certifications and training
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| D1 | Total revenue related to Microsoft services with new revenue stream | Composite | $982,520,000 | $1,082,369,200 | $1,191,818,320 | |
| D2 | Percentage of project work delivered by team members with Microsoft advanced certifications | Composite | 10% | 15% | 20% | |
| D3 | Percentage of efficiency lifting with Microsoft advanced certifications | Interviews | 5% | 10% | 20% | |
| D4 | Percentage in delivery acceleration due to a Microsoft skilling and enablement program | D2*D3 | 0.50% | 1.50% | 4.00% | |
| D5 | Previous gross margin | A7 | 30% | 30% | 30% | |
| D6 | Improved gross margin due to delivery acceleration | 1-(1-D5)*(1-D4) | 30.35% | 31.05% | 32.80% | |
| Dt | Incremental gross profit increase from faster delivery | D1*(D6-D5) | $3,438,820 | $11,364,877 | $33,370,913 | |
| Risk adjustment | 0% | |||||
| Dtr | Incremental gross profit increase from faster delivery (risk-adjusted) | $3,438,820 | $11,364,877 | $33,370,913 | ||
| Three-year total: $48,174,610 | Three-year present value: $37,590,721 | |||||
Interviewees mentioned the following additional benefits that their partner organizations experienced but were not able to quantify:
Improved employee confidence and engagement. Interviewees noted that the Microsoft skilling and enablement program boosted employee confidence, especially when engaging with clients. Structured learning paths and hands-on training helped individuals feel more capable and credible, enabling them to contribute meaningfully to solutioning and decision-making. According to interviewees, this sense of pride and relevance enhanced engagement and motivation. The Microsoft practice lead at a GSI partner organization shared: “Employees love certifications because it’s a pride. It helps them to align and showcase they’re better than the rest. … The person who’s been trained, certified, and then done this is far more confident.” The director of global alliance business development at a GSI partner organization also commented, “[The training allows them] to have a very intelligent conversation in new areas.”
Increased employee retention. Interviewees whose partner organizations invested in Microsoft skilling and enablement said they experienced lower attrition rates. Their employees valued the opportunity to grow their careers and recognized certifications as transferable assets. This investment in professional development fostered loyalty and helped the interviewees’ partner organizations retain top talent. The SVP at a GSI partner organization stated, “Our attrition of people that we have certified is lower.” The solution advisor at a GSI partner organization shared: “We’ve built it into our promotional strategy. … Certified employees are more likely to be promoted or selected for strategic roles.”
Improved operational efficiency and reduced errors. Interviewees noted that skilled and certified teams delivered projects with fewer errors and greater consistency. Hands-on training and contextual learning reduced delivery risks and improved quality, leading to smoother execution, faster onboarding, and higher client satisfaction. The SVP at a GSI partner organization commented: “Avoidance of error is very important. It’s doing the right thing. We rarely have a problem with human error. A bigger element of that is the skill of the people.”
The value of flexibility is unique to each partner. There are multiple scenarios in which a Microsoft partner might implement a Microsoft skilling and enablement program and later realize additional opportunities, including:
Standardization access global teams. The Microsoft skilling and enablement program helped the interviewees’ large, globally distributed organizations create a consistent baseline of technical capability across regions, roles, and business units. Interviewees from GSI partners emphasized that aligning their internal training structures with Microsoft’s solution areas enabled them to mirror Microsoft’s global framework, making collaboration and delivery more seamless. This standardization was especially valuable for those with teams working across geographies. For example, the head of certification at a GCS partner organization mentioned that they integrated Microsoft’s certification tracking via APIs into their internal systems, allowing real-time visibility into certification status across regions. This helped ensure that certified experts were available locally for client engagements, reducing reliance on remote resources and improving responsiveness.
Enablement of thought leadership and innovation. Beyond technical training, Microsoft Skilling program also supported strategic enablement at the interviewees’ partner organizations, empowering sales, presales, and delivery teams to engage in higher-value conversations with clients. Both the solution advisor and the director of global alliance business development at separate GSI partner organizations highlighted that the programs helped their teams understand emerging technologies like Copilot, genAI, and Azure AI in the context of specific industries (e.g., retail, banking, healthcare). This contextual learning enabled teams to cocreate solutions with clients, identify new revenue streams, and position themselves as trusted advisors. Thought leadership enablement also improved deal conversion and renewal rates by demonstrating a deep understanding of client challenges and offering differentiated, forward-looking solutions.
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Etr | Training program setup and ongoing management | $86,400 | $129,600 | $129,600 | $129,600 | $475,200 | $408,696 |
| Ftr | Time investment for training | $0 | $12,350,000 | $12,350,000 | $12,350,000 | $37,050,000 | $30,712,622 |
| Gtr | Certifications test fee | $0 | $55,050 | $55,050 | $55,050 | $165,150 | $136,901 |
| Total investments (risk-adjusted) | $86,400 | $12,534,650 | $12,534,650 | $12,534,650 | $37,690,350 | $31,258,219 |
Evidence and data. According to interviewees, setting up a Microsoft skilling and enablement program required strategic planning, cross-functional coordination, and deep partnership engagement. Most interviewees said their partner organizations began with informal or organic training efforts but over time, these evolved into structured programs aligned with Microsoft’s solution areas and business goals.
The Microsoft practice lead at a GSI partner organization shared that their organization mobilized a skilling strategy for over 40,000 Microsoft-focused employees. They aligned their internal structure with Microsoft’s solution areas (e.g., Azure, Business Applications, Modern Work, etc.) and built a system to track certifications, prioritize emerging technologies, and respond to client demand windows. This required dedicated leadership, internal tooling, and close collaboration with Microsoft to access content.
The global cloud commercial lead at a GCS partner organization and the VP at a GCS partner organization both mentioned that their organizations developed centralized enablement teams and platforms to manage training across global teams. The global cloud commercial lead’s organization created a “Global Specialized Skills” department and integrated Microsoft’s Enterprise Skills Initiative (ESI) into their internal systems. The VP’s organization embedded certification into onboarding and career development paths.
Managing these programs required continuous coordination, tracking, and adaptation for the interviewees’ partner organizations. Partners typically assigned dedicated teams to oversee skilling initiatives. The SVP at a GSI partner organization had a team of four full-time staff managing the Microsoft skilling and enablement program internally, including voucher distribution, training logistics, and employee motivation.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite partner organization:
The composite has a team of five staff for training preparation and coordination. They spend around 2.4 months setting up the training program internally.
The same team also dedicates 30% of its effort on progress tracking and ongoing management of the program.
The average fully burdened annual salary for a staff member is $86,400.
Risks. There are no risks involved that would impact this cost.
Results. Over three years, Microsoft skilling and enablement program setup and ongoing management reached a total PV (discounted at 10%) of $409,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| E1 | Team members involved in the training preparation and coordination | Composite | 5 | |||
| E2 | Time for training preparation and planning (years) | Composite | 20% | |||
| E3 | Team members involved in progress tracking and ongoing management | Composite | 5 | 5 | 5 | |
| E4 | Percentage of effort | Composite | 30% | 30% | 30% | |
| E5 | Fully burdened annual salary for a staff member | Composite | $86,400 | $86,400 | $86,400 | $86,400 |
| Et | Training program setup and ongoing management | (E1*E2+E3*E4)*E5 | $86,400 | $129,600 | $129,600 | $129,600 |
| Risk adjustment | 0% | |||||
| Etr | Training program setup and ongoing management (risk-adjusted) | $86,400 | $129,600 | $129,600 | $129,600 | |
| Three-year total: $475,200 | Three-year present value: $408,696 | |||||
Evidence and data. Interviewees from across multiple partner organizations said employees consistently invested significant amounts of time to complete a Microsoft skilling and enablement program. The time commitment varied depending on the type of certification, the employee’s role, and the training format.
For fundamental certifications, employees at the interviewees’ partner organizations typically spent 8 to 25 hours preparing, including self-paced learning and mock exams. For advanced role-based certifications, the time investment ranged from 40 to 70 hours. For example, the director of global alliance business development at a GSI partner organization estimated 60 to 70 hours for advanced certifications, while the solution advisor at a GSI partner organization reported 32 to 40 hours for training plus additional time for exam readiness.
Interviewees’ organizations often ran different bootcamps and hackathons. The Microsoft practice lead at a GSI partner organization shared that they ran multiple bootcamps and hackathons annually, each lasting from two days to six weeks. Other partners also engaged in these formats regularly, often codeveloped with Microsoft and tailored to specific technologies or business needs.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite partner organization:
There are 3,000 employees achieving fundamental certification with Microsoft per year. Each spends 20 hours on learning and taking exams.
There are 1,500 employees achieving advanced certifications in the composite partner organization. Each spends 60 hours on learning and taking exams.
Every year, 1,000 employees join the Microsoft bootcamps, which on average take 20 hours per bootcamps to join.
Another 500 employees join the Microsoft hackathons. Each hackathon lasts for 40 hours on average.
The average fully burdened hourly rate for a staff member is $65.
Risks. There are no risks involved that would impact this cost.
Results. Over three years, the cost of learning time dedicated to Microsoft skilling and enablement totals a PV (discounted at 10%) of $30.7 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| F1 | Fundamental certifications achieved per year | Composite | 3,000 | 3,000 | 3,000 | |
| F2 | Learning time required to get a fundamental certification (hours) | Interviews | 20 | 20 | 20 | |
| F3 | Advanced certifications achieved per year | Composite | 1,500 | 1,500 | 1,500 | |
| F4 | Learning time required to get an advanced certification (hours) | Interviews | 60 | 60 | 60 | |
| F5 | Employees who join bootcamps per year | Composite | 1,000 | 1,000 | 1,000 | |
| F6 | Time invested in bootcamp learning (hours) | Interviews | 20 | 20 | 20 | |
| F7 | Employees who join hackathons per year | Composite | 500 | 500 | 500 | |
| F8 | Time invested in hackathons (hours) | Interviews | 40 | 40 | 40 | |
| F9 | Fully burdened annual salary for a staff member | Composite | $65 | $65 | $65 | |
| Ft | Time investment for training | (F1*F2+F3*F4+F5*F6+F7*F8)*F9 | $0 | $12,350,000 | $12,350,000 | $12,350,000 |
| Risk adjustment | 0% | |||||
| Ftr | Time investment for training (risk-adjusted) | $0 | $12,350,000 | $12,350,000 | $12,350,000 | |
| Three-year total: $37,050,000 | Three-year present value: $30,712,622 | |||||
Evidence and data. Most interviewees emphasized that Microsoft covered a substantial portion of the training costs, including certification exam vouchers, sandbox environments, trainers, and bootcamp infrastructure. This co-investment made it feasible for partners to scale their skilling programs without incurring prohibitive expenses.
The VP of ecosystem and partnership at a GSI partner organization reported that Microsoft covered 60% to 70% of the skilling program costs, including certification vouchers and training resources.
The global cloud commercial lead at a GCS partner organization confirmed that Microsoft’s vouchers fully covered both training and exam costs, making it easier and more cost-effective for partners to onboard and certify large numbers of employees.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite partner organization:
The cost of taking the test to get fundamental certifications is $99 and the cost of taking the test to get advanced certifications is $169.
With Microsoft vouchers, 90% of the cost is covered by Microsoft.
Risks. There are no risks involved that would impact this cost.
Results. Over three years, the composite organization spend for Microsoft certification fees is a total PV (discounted at 10%) of $137,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| G1 | Fundamental certifications | Composite | 3,000 | 3,000 | 3,000 | |
| G2 | Cost of fundamental certification test | Interviews | $99 | $99 | $99 | |
| G3 | Advanced certifications | Composite | 1,500 | 1,500 | 1,500 | |
| G4 | Cost of advanced certification test | Interviews | $169 | $169 | $169 | |
| G5 | Cost covered by Microsoft vouchers | Interviews | 90% | 90% | 90% | |
| Gt | Certifications test fee | (G2*F1+G4*F3)*(1-G5) | $0 | $55,050 | $55,050 | $55,050 |
| Risk adjustment | 0% | |||||
| Gtr | Certifications test fee (risk-adjusted) | $0 | $55,050 | $55,050 | $55,050 | |
| Three-year total: $165,150 | Three-year present value: $136,901 | |||||
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total investments | ($86,400) | ($12,534,650) | ($12,534,650) | ($12,534,650) | ($37,690,350) | ($31,258,219) |
| Total gross profits | $0 | $25,748,620 | $36,234,535 | $60,977,140 | $122,960,295 | $99,166,760 |
| Net revenues | ($86,400) | $13,213,970 | $23,699,885 | $48,442,490 | $85,269,945 | $67,908,541 |
| ROI | 217% | |||||
| Payback | <6 months |
The financial results calculated in the Revenue Streams and Investments sections can be used to determine the ROI, NPV, and payback period for the composite partner’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Revenue Stream and Investment section.
The initial investment column contains investments incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Gross Profit, Total Investments, and Cash Flow tables may not exactly add up, as some rounding may occur.
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those partners considering building and growing a Microsoft skilling and enablement program
The objective of the framework is to identify the revenue streams, investments, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the holistic opportunity for partners building and growing a Microsoft skilling and enablement program.
Interviewed Microsoft stakeholders and Forrester analysts to gather data relative to the Microsoft skilling and enablement program.
Interviewed 11 decision-makers at partner organizations with existing Microsoft skilling and enablement programs to obtain data about investments, revenue streams, and risks.
Designed a composite partner organization based on characteristics of the interviewees’ organizations.
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
Employed four fundamental elements of TEI in modeling the impact of a Microsoft skilling and enablement program: revenue, investments, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase and partnership decisions. Please see Appendix A for additional information on the TEI methodology.
Revenue streams represent the value of monetizable offerings and services made possible to partners by engaging in the partnership. The TEI methodology places equal weight on the measure of revenue streams and investments, allowing for a full examination of the impact of a partnership to an organization.
Investments comprise all expenses necessary to kickstart, operate, and grow the partner practice. The methodology captures direct investments, such as capital expenditures, marketing expenses, and additional headcount, as well as indirect investments such as training, reskilling, and overhead.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. The ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PVs of investments and revenues feed into the total NPV of cash flows.
The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs.
A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (revenues less investments) by investments.
Gross margin is the percentage of revenue that exceeds the cost of goods sold (COGS), reflecting the efficiency of partner offerings, services, and pricing strategies. It is calculated by subtracting COGS from total revenue and dividing the result by total revenue, then multiplying by 100.
Operating margin measures the percentage of revenue remaining after deducting operating expenses (excluding taxes and interest) from gross margin, indicating the profitability of core business operations. It is calculated by dividing operating income by total revenue and multiplying by 100.
The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.
The breakeven point for an investment. This is the point in time at which net revenues (revenues minus investments) equal initial investment or cost.
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
1 Source: Establishing The Cornerstones Of Partner Ecosystem Success, Forrester Research, Inc., September 11, 2025.
2 Source: Introducing The Forrester Evolved Partner’s Journey, Forrester Research, Inc., July 30, 2024.
Readers should be aware of the following:
This study is commissioned by Microsoft and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in a Microsoft skilling and enablement program.
Microsoft reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
Microsoft provided the partner names for the interviews but did not participate in the interviews.
Chengcheng Dong
December 2025
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