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More dependent on partners than any other major software company, Microsoft has recently modified its core partner program and significantly broadened the number of partners with which the company has formal relationships. The new program, which puts a high priority on serving small partners, tries to balance many competing requirements, such as the need to satisfy partners with one employee and those with thousands; the desire to allow virtually any company to become a Microsoft partner while still maintaining standards that assure other partners and customers of partner quality; and the need to market its products and services effectively to partners without overwhelming them with material irrelevant to their particular businesses. Companies that take advantage of Microsoft’s partner programs can tap Microsoft’s vast array of resources and market power to benefit their own business. At the same time, a partnership with Microsoft contains certain risks, such as the possibility that Microsoft might decide to enter a particular technology segment that the partner already occupies.

This report describes major elements of Microsoft’s partner strategy and the general landscape of Microsoft partnerships, and provides a detailed look at major features of the new Microsoft Partner Program. It describes the characteristics that are important to Microsoft in evaluating its partners, pathways for partners who want to earn more support and recognition from Microsoft, and some of the teams involved in managing partners and partner programs.