Microsoft remains one of the most partner-friendly organizations in the software industry, at least partly because it has no other way to deal with its millions of customers. However, the software industry is undergoing significant change, and the full ramifications of alternate delivery channels, such as the Internet, have yet to be felt.

Microsoft is not the only major vendor to realize that partners are the only way to reach certain customers, particularly small and midsize businesses. Other major software vendors have partner programs in place and are looking at ways to improve them, creating numerous opportunities for ISVs, systems integrators, training organizations, and others. While Microsoft attempts to move up from its desktop and workgroup strength to the midmarket and the enterprise, enterprise vendors such as Hewlett-Packard, IBM, and SAP expect much of their growth to come from the midmarket, and they recognize that this market is too large to reach without strong partner programs. The result is a growing bounty for partners who invest in partnerships with larger vendors and who leverage vendor technical and marketing resources.

Microsoft remains one of the most partner-friendly organizations in the software industry, at least partly because it has no other way to deal with its millions of customers. However, the software industry is still undergoing significant change, and the full ramifications of alternate delivery channels, such as the Internet, have yet to be felt.

Microsoft is not the only major vendor to realize that partners are the only way to reach certain customers, particularly small and mid-size businesses. Other major software vendors have partner programs in place and are looking at ways to improve them, creating numerous opportunities for ISVs, systems integrators, training organizations, and others.

Partners should recognize that Microsoft has made a very large investment in its partner programs. A partner can use its own investment in a relationship with Microsoft to leverage Microsoft’s enormous technical and marketing resources. However, partners also need to match their own business imperatives against Microsoft’s larger strategic goals and industry positioning to avoid colliding with the company. That will be easier for some organizations than for others.