The Future of Microsoft ISPs Is Not Technical

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If your Microsoft practice still tries to differentiate itself through deployment expertise,

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you are competing in a market that no longer exists.

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Pause on that for a second.

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The future of Microsoft ISPs is not technical, and the partners who fail to grasp that shift

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will slowly become interchangeable.

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This won't happen overnight over the sudden burst of drama, but over the next 18 months,

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these firms will watch their pricing pressure increase while customer acquisition costs rise.

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The very thing they built their business on, technical excellence, will become a completely

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assumed baseline.

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Here is the uncomfortable reality of the situation.

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CSP margins are structurally compressing because Microsoft announced this shift two years ago,

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and the impact is finally landing now.

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By January of 2026, all large enterprise agreements will transition directly to Microsoft,

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which represents a $2.5 billion commission wipeout across the entire partner ecosystem.

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65% of partners are simply not equipped to survive this transition, not because they lack

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the ability to execute, but because their entire model depends on someone else's pricing

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structure.

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When your strategy relies on a priceless, you don't control, you don't actually have a strategy,

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and that exposure is now closing in.

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At the same time, automation is standardizing everything you sell.

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Co-pilot is now embedded directly in the interface, lighthouse performs deployment health

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checks without needing human interpretation, and autopilot reduces onboarding to something

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a competent customer can handle alone.

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The skill gap between a certified partner and a disciplined customer team is narrowing

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every day, and it will continue to shrink as Microsoft's own native diagnostics commoditize

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the implementation layer.

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You can already feel this shift in deal conversations where customers ask fewer questions about how

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you'll configure a system and focus entirely on the price.

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Feature parity across the ecosystem means customers no longer compare you based on capability.

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They compare you on cost.

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The certification arms race, the endless pursuit of solutions partner badges and security

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specializations proves you can do the work, but it doesn't prove you should be paid a premium

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for it.

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These credentials signal basic hygiene rather than actual leverage.

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Microsoft is also moving upmarket by deploying their own large account teams and handling transformational

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deals directly.

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Mid-market customers now receive cloud incentives and direct technical support, leaving the

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partners in the middle squeezed from both sides.

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They are not large enough to be strategic and not specialized enough to be necessary,

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trapped between Microsoft's direct motion and a marketplace where implementation services

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are three clicks away.

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Many of you built these practices from nothing by coding, learning the platform, and earning

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customer respect through sheer technical competence.

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That pride is legitimate, but it has become obsolete as a business model because the work

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itself stopped being differentiated.

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Everyone has the same certifications and everyone knows the same feature sets, so the

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badges just multiplied as if more credentials could rebuild a mode that automation already

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demolished.

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This is the core tension.

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Implementation revenue is episodic.

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You perform a migration or configure defender and then the contract ends, meaning your growth

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depends entirely on deal velocity and utilization rates.

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Your retention relies on finding excuses to touch the customer again before they realize

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they don't actually need you.

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Economic advisory revenue is structural because you become the operator who owns the tenants

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cost to value equation.

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You run the quarterly reviews, adjust entitlements to prevent waste and guide license consolidation

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while measuring co-pilot adoption against actual outcomes.

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This creates a retainable, repeatable revenue that compounds over time, building a dependency

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based on clarity rather than a fear of technical errors.

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One is a project, the other is a practice.

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One scales with sales while the other scales with outcomes.

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When a capability becomes expected, it stops being strategic and that transition is now

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complete.

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The market no longer values technical implementation.

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It values economic stewardship.

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The discomfort.

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If your Microsoft practice differentiates on deployment expertise, you are competing in

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a market that no longer exists, pause on that.

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The future of Microsoft ISPs is not technical.

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Partners who don't understand that shift will slowly become interchangeable.

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It won't be a sudden collapse, but over the next 18 months, they will watch pricing pressure

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increase and acquisition costs rise while their technical excellence becomes a basic expectation.

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CSP margins are structurally compressing right now.

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Microsoft announced this two years ago and the impact is finally hitting the bottom line.

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By January of 2026, all large enterprise agreements will transition directly to Microsoft,

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including in a $2.5 billion commission wipeout for the partner ecosystem.

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65% of partners won't survive this because they built a model that depends entirely on

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someone else's pricing structure.

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When your strategy relies on a priceless, you don't control, you don't have a strategy.

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You have exposure and that window is closing.

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Automation is standardizing your catalog.

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Co-pilot is embedded in the UI, lighthouse handles health checks, and autopilot makes onboarding

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simply enough for customers to run themselves.

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The skill gap between a partner and a disciplined customer team is narrowing because Microsoft's

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own managed services are commoditizing the implementation layer.

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You can hear it in your sales calls when customers stop asking about configuration and start

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asking about the bill.

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Feature parity means customers no longer compare you on capability, and they compare you on

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price.

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The certification arms race, the badges on top of badges proves you can do the work, but

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it doesn't justify your margin.

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These are signs of hygiene, not signs of leverage.

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Microsoft is also moving up market with their own teams and direct deals.

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Most market customers now get direct support and co-sell incentives, which compresses the

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partners stuck in the middle.

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You are being squeezed from above by Microsoft's direct motion and from below by a marketplace

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where implementation is a commodity.

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The emotional reality for ISPs.

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Let's talk about what this actually feels like.

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You built these practices from nothing through late nights and deep technical learning.

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You earned respect because you knew how to make the technology work and that pride is real.

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However, that pride has become a liability.

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The old MSP model was simple.

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You had a capable team, you won deals based on trust and the business grew because technical

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knowledge was scarce.

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You showed competence, built a reputation, and won at scale.

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That model is now collapsing.

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The certification arms race only accelerated because the work itself stopped being unique.

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Everyone has the same badges now, and everyone can deploy, autopilot, or set up conditional

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access in intra.

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The badges multiplied.

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Advanced solutions partner, security specialization, AI cloud partner, as if more credentials

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could fix a mode that automation had already destroyed.

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Five years ago, being a solutions partner meant you were in the top percentile of capable firms.

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That credential had weight because it represented validated scarce skills.

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Today, that status is just table stakes.

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It's what customers expect you to have before they even pick up the phone.

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You cannot rebuild a business mode using credentials that every one of your competitors

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can attain.

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The real issue is that you've been racing to prove you can do what Microsoft's own tools

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now do automatically.

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Future-based sales decks are dead.

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You've felt it in the room when customers stop caring about defender or e5 capabilities

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and start asking if they are getting value from what they already bought.

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They don't want to see deployment slides, they want to see business outcomes.

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Yet the industry keeps doing more of what failed.

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More feature deep dives, more co-pilot use cases, and more marketing that leads with technical

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specs instead of business impact.

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It is like competing to be the best driver in a world that no longer needs people behind

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the wheel.

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The core tension, episodic versus structural revenue, you need to understand the fundamental

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shift in how money is made.

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Implementation revenue is episodic and usually lasts for a few months of effort.

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You configure the environment, hand it off, and send the final invoice.

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Once the contract ends, you need a brand new deal to keep the lights on.

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This model is built on velocity, forcing you to constantly ask how many migrations you

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can staff before customers stop needing you.

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This creates a specific kind of internal pressure.

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You focus on sales targets and utilization metrics because the revenue doesn't compound.

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It just terminates.

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Growth is measured by how many new deals you can harvest, making retention a secondary concern,

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rather than a requirement for survival.

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Profitability in this model depends on keeping your people billable.

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You have to charge enough to cover overhead while finding enough deals to keep the bench full.

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This is a project services business with project services economics.

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When the work becomes a commodity, your margins shrink because customers can find the same

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standardized service cheaper elsewhere. Economic advisory revenue is structural.

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You become the operator who owns the cost-value equation for the entire tenant.

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You run the business reviews, adjust entitlements based on actual usage, and prevent waste.

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You guide license consolidation and measure co-pilot adoption against actual workflow improvements

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rather than just usage metrics.

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This creates repeatable revenue that compounds.

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Once you own the economic relationship, you have visibility that the customer lacks internally.

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You can measure the things the CFO cares about and prevent costs the CIO doesn't even see

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yet.

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You become structurally necessary not because you are technically superior but because you

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own the information on the economic side.

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This model changes your internal psychology from sales pressure to advisory discipline.

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Instead of chasing a pipeline of new deals, you manage a portfolio of deepening relationships.

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Growth comes from wallet expansion and prevented costs rather than just finding new logos.

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Retention isn't a nice to have, it is the entire business.

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Safety here depends on value realization.

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If you can connect what a customer pays to what they actually use, you gain pricing power.

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You aren't competing on the cost of delivery anymore.

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You are competing on economic outcomes which are far more valuable to the client.

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One is a project, the other is a practice.

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One scales with sales while the other scales with outcomes.

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One ends when the work is done while the other grows over time.

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One competes on price because there is nothing else left while the other competes on impact.

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Your customers already know this.

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They aren't fighting you on your margin.

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They are fighting you because you aren't giving them economic visibility.

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They don't care if you are technically better than the next guy.

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They care if you are creating clarity and stopping waste.

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This isn't just a preference, it is the maturation of the market.

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When a capability becomes expected, it is no longer strategic.

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The market has moved past deployment.

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What comes next is economic stewardship.

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The partners who embrace this shift will own their customer relationships, while those

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who don't will watch their clients become interchangeable.

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When everyone looks the same, price is the only thing that matters.

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That is the discomfort you feel right now.

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The margin pressure and the constant need for velocity.

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There is a way forward, but it requires a diagnosis of what value actually looks like in a

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mature market.

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The diagnosis.

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Now that you understand the discomfort, we need to diagnose what is actually happening.

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This is not random market chaos.

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This is a predictable structural change following a pattern that occurs in every mature technology

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market.

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Understanding that pattern is critical because it explains not just where you are, but where

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you are headed if you do not act.

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The commoditization curve.

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Every technology market follows the same progression.

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This is not an opinion.

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This is observable across industries, decades and vendors.

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The pattern is complexity emerges.

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A new capability appears.

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It is hard to understand.

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It requires specialized knowledge.

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Bariers to entry are high.

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Early adopters invest heavily to master it because mastery creates a competitive advantage.

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Specialists emerge.

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As complexity proves durable, specialist form around it.

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Consulting firms.

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Implementation partners.

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Training academies.

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Specialists become essential because the work is still complex and capital intensive.

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Customers need experts.

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Experts command premium pricing.

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Standardization follows.

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As the market matures, patterns become visible.

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Best practices crystallize.

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Automation tools emerge to reduce manual effort.

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Methodologies replace artistry.

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The complexity does not disappear, but it becomes repeatable.

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The work starts to feel like a process instead of a craft.

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Commodityization accelerates.

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Once work is standardized, it becomes high-reduable.

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You do not need a specialist anymore.

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You need competence.

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The skill gap between a master craftsman and a competent technician collapses.

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Marketplace platforms emerge.

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Competitors multiply.

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Price competition begins.

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The margin that specialists enjoy evaporates.

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Value migration moves upstream.

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By the time commoditization is complete, the real value has shifted to the layer above.

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It is no longer about doing the work.

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It is about optimizing the outcome of the work.

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Orchestrating multiple commodities.

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Preventing inefficiency.

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Guiding decisions that compound advantage.

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The vendors and partners who understand this migration early capture it.

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The ones who do not become interchangeable.

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Watch this pattern unfold in real time across the Microsoft ecosystem.

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Azure migration was cutting edge in 2015, maybe 2016.

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Complexity was high.

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Few partners understood cloud architecture.

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Customer risk was real.

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If you got it wrong, the migration failed.

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Specialist commanded premium rates.

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Implementation teams were small and expensive.

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Migration projects were high value engagements with strong margins.

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By 2019 patterns were clear.

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00:12:04,640 --> 00:12:06,320
Most practices had been documented.

248
00:12:06,320 --> 00:12:07,320
Tools had emerged.

249
00:12:07,320 --> 00:12:09,040
Methodologies were standardized.

250
00:12:09,040 --> 00:12:11,560
Azure migrate did discovery automatically.

251
00:12:11,560 --> 00:12:12,800
Rehose became template driven.

252
00:12:12,800 --> 00:12:13,960
The skill gap collapsed.

253
00:12:13,960 --> 00:12:16,400
By 2022, Azure migration was wrote.

254
00:12:16,400 --> 00:12:18,080
Marketplace partners could do it.

255
00:12:18,080 --> 00:12:20,400
Customers could do significant portions themselves.

256
00:12:20,400 --> 00:12:22,560
The margin on migration revenue compressed hard.

257
00:12:22,560 --> 00:12:23,560
You could feel it.

258
00:12:23,560 --> 00:12:28,800
The deals that cost $500,000 in 2017 were being bid at $300,000 by 2021.

259
00:12:28,800 --> 00:12:30,680
Now watch E5 security.

260
00:12:30,680 --> 00:12:34,080
When E5 was introduced, it represented a major complexity jump.

261
00:12:34,080 --> 00:12:36,520
Internet and vulnerability management, advanced auditing,

262
00:12:36,520 --> 00:12:39,320
privilege access management, purview for data governance.

263
00:12:39,320 --> 00:12:40,960
These capabilities were cutting edge.

264
00:12:40,960 --> 00:12:42,960
Not many partners understood the full value.

265
00:12:42,960 --> 00:12:45,880
You could command premium pricing for E5 advisory and deployment

266
00:12:45,880 --> 00:12:47,600
because customers could not do it themselves.

267
00:12:47,600 --> 00:12:49,080
Then standardization happened.

268
00:12:49,080 --> 00:12:51,000
Defender patterns became documented.

269
00:12:51,000 --> 00:12:52,400
Security baselines emerged.

270
00:12:52,400 --> 00:12:53,800
Pilot programs became common.

271
00:12:53,800 --> 00:12:56,760
By 2024, E5 deployment was expected knowledge.

272
00:12:56,760 --> 00:12:57,760
Not cutting edge.

273
00:12:57,760 --> 00:12:58,840
Assumed.

274
00:12:58,840 --> 00:13:01,800
Customers stopped paying premium rates for E5 implementation

275
00:13:01,800 --> 00:13:03,160
because the work was standard.

276
00:13:03,160 --> 00:13:06,240
A note that existed in 2018 had completely eroded.

277
00:13:06,240 --> 00:13:08,240
Now watch what is happening with endpoint onboarding

278
00:13:08,240 --> 00:13:09,680
and co-pilot deployment.

279
00:13:09,680 --> 00:13:12,800
Endpoint onboarding through Intune and Entra was one specialized work.

280
00:13:12,800 --> 00:13:14,880
Now autopilot has reduced it to a process.

281
00:13:14,880 --> 00:13:16,840
Copilot is embedding into the interface.

282
00:13:16,840 --> 00:13:18,440
The deployment is becoming native.

283
00:13:18,440 --> 00:13:20,800
In 24 months, you will be past standardization

284
00:13:20,800 --> 00:13:22,360
and entering commoditization.

285
00:13:22,360 --> 00:13:23,880
Partners will compete on price

286
00:13:23,880 --> 00:13:26,560
because the work will be repeatable and high-rebel.

287
00:13:26,560 --> 00:13:29,000
Customers will assume your team knows how to do it.

288
00:13:29,000 --> 00:13:32,800
Anything beyond that will be treated as nice to have, not strategic.

289
00:13:32,800 --> 00:13:33,880
This is not a slow change.

290
00:13:33,880 --> 00:13:34,800
This is not subtle.

291
00:13:34,800 --> 00:13:36,000
This is structural.

292
00:13:36,000 --> 00:13:38,240
And it applies to every implementation service

293
00:13:38,240 --> 00:13:39,400
you currently offer.

294
00:13:39,400 --> 00:13:41,600
The key insight, if you can hire it in three clicks

295
00:13:41,600 --> 00:13:43,920
on a marketplace, it is not a mode.

296
00:13:43,920 --> 00:13:44,960
It is a commodity.

297
00:13:44,960 --> 00:13:46,920
And commodities are priced accordingly.

298
00:13:46,920 --> 00:13:48,920
The partners who are currently compressing on margin

299
00:13:48,920 --> 00:13:50,400
are the ones who build their practices

300
00:13:50,400 --> 00:13:52,960
on the commodities of 2015 through 2020.

301
00:13:52,960 --> 00:13:56,400
As your migration, security deployment, endpoint management,

302
00:13:56,400 --> 00:13:58,400
these were high-value engagements five years ago.

303
00:13:58,400 --> 00:14:00,160
They are low margin today.

304
00:14:00,160 --> 00:14:01,840
And the partners offering them are wondering

305
00:14:01,840 --> 00:14:03,840
why their deals are harder to close

306
00:14:03,840 --> 00:14:05,920
and their margins thinner than they used to be.

307
00:14:05,920 --> 00:14:08,040
That is because the value migrated up stack.

308
00:14:08,040 --> 00:14:10,360
The question is no longer, can you migrate?

309
00:14:10,360 --> 00:14:11,320
It is.

310
00:14:11,320 --> 00:14:13,360
Are we getting value from what we migrated?

311
00:14:13,360 --> 00:14:15,960
The question is no longer, can you deploy E5?

312
00:14:15,960 --> 00:14:16,800
It is.

313
00:14:16,800 --> 00:14:19,680
Are we actually using the capabilities we are paying for?

314
00:14:19,680 --> 00:14:21,680
The question is no longer, can you enable co-pilot?

315
00:14:21,680 --> 00:14:22,280
It is.

316
00:14:22,280 --> 00:14:24,400
Is co-pilot actually reducing our cost of work

317
00:14:24,400 --> 00:14:25,600
in measurable ways?

318
00:14:25,600 --> 00:14:28,320
Those questions require completely different expertise.

319
00:14:28,320 --> 00:14:31,320
And those answers are what the market will pay for next.

320
00:14:31,320 --> 00:14:33,480
The three ISP models that are dying.

321
00:14:33,480 --> 00:14:35,560
I want to be specific about which partner models

322
00:14:35,560 --> 00:14:36,920
are hitting a wall right now.

323
00:14:36,920 --> 00:14:39,600
Within the Microsoft ecosystem, three dominant archetypes

324
00:14:39,600 --> 00:14:41,920
exist and none of them are ready for what comes next.

325
00:14:41,920 --> 00:14:43,880
Every one of them is watching their margins shrink

326
00:14:43,880 --> 00:14:45,640
for the same structural reason.

327
00:14:45,640 --> 00:14:47,760
They built their entire business on capabilities

328
00:14:47,760 --> 00:14:52,080
that are now expected, automated, or completely commoditized.

329
00:14:52,080 --> 00:14:54,320
Model one, the license reseller.

330
00:14:54,320 --> 00:14:57,440
The license reseller operates on a single, simple premise.

331
00:14:57,440 --> 00:14:59,240
If you can buy a license for less than you

332
00:14:59,240 --> 00:15:00,920
sell it for, you have a business.

333
00:15:00,920 --> 00:15:02,320
The mechanics are straightforward.

334
00:15:02,320 --> 00:15:04,520
You establish a relationship with Microsoft,

335
00:15:04,520 --> 00:15:07,920
negotiate volume discounts, and buy licenses at scale.

336
00:15:07,920 --> 00:15:11,400
Then you flip those licenses to customers at retail price

337
00:15:11,400 --> 00:15:13,200
and keep the spread as your profit.

338
00:15:13,200 --> 00:15:14,560
You win by offering better pricing

339
00:15:14,560 --> 00:15:16,360
than a customer can get going direct,

340
00:15:16,360 --> 00:15:19,000
and you grow by stacking more seats and managing renewals.

341
00:15:19,000 --> 00:15:20,680
This model has worked for decades

342
00:15:20,680 --> 00:15:23,200
and represents how a massive portion of the partner world

343
00:15:23,200 --> 00:15:23,880
functions.

344
00:15:23,880 --> 00:15:26,320
It is simple, mechanical, and highly scalable,

345
00:15:26,320 --> 00:15:29,120
but the structural flaws are becoming impossible to ignore.

346
00:15:29,120 --> 00:15:30,760
Your only real competitive advantage

347
00:15:30,760 --> 00:15:32,480
is negotiating power and deal flow

348
00:15:32,480 --> 00:15:34,480
rather than actual value creation.

349
00:15:34,480 --> 00:15:36,040
Because your margin depends entirely

350
00:15:36,040 --> 00:15:37,800
on someone else's pricing structure,

351
00:15:37,800 --> 00:15:39,640
you have no control over your own fate.

352
00:15:39,640 --> 00:15:42,080
Microsoft changes the rules whenever they feel like it.

353
00:15:42,080 --> 00:15:43,840
When they announce CSP compression

354
00:15:43,840 --> 00:15:46,480
or move enterprise accounts to direct sales,

355
00:15:46,480 --> 00:15:48,120
your margin simply evaporates.

356
00:15:48,120 --> 00:15:49,960
You cannot protect it or argue against it.

357
00:15:49,960 --> 00:15:53,240
You just absorb the hit, which is exactly what we are seeing today.

358
00:15:53,240 --> 00:15:55,920
The billions in commission revenue currently vanishing

359
00:15:55,920 --> 00:15:58,400
from the ecosystem aren't being taken

360
00:15:58,400 --> 00:16:00,440
from the partners who fail to provide value.

361
00:16:00,440 --> 00:16:02,400
Instead, that money is being redistributed

362
00:16:02,400 --> 00:16:04,760
based on Microsoft's new direct sales motion

363
00:16:04,760 --> 00:16:06,080
and CSP restructuring.

364
00:16:06,080 --> 00:16:08,960
Your customers aren't staying because of your unique brilliance.

365
00:16:08,960 --> 00:16:11,280
They stay because the cost of switching is a headache.

366
00:16:11,280 --> 00:16:13,040
However, the check that comes with that renewal

367
00:16:13,040 --> 00:16:15,280
is getting smaller and you have no lever to pull

368
00:16:15,280 --> 00:16:16,400
to change that reality.

369
00:16:16,400 --> 00:16:18,600
Furthermore, you have no real economic relationship

370
00:16:18,600 --> 00:16:19,400
with the customer.

371
00:16:19,400 --> 00:16:21,320
You buy, you sell, and you renew,

372
00:16:21,320 --> 00:16:22,920
but you have zero visibility

373
00:16:22,920 --> 00:16:25,240
into whether those licenses actually do anything.

374
00:16:25,240 --> 00:16:28,520
If a customer buys E5, you have no idea if they are using it

375
00:16:28,520 --> 00:16:31,000
or if they are seeing a return on that investment.

376
00:16:31,000 --> 00:16:32,920
You actually have no incentive to find out

377
00:16:32,920 --> 00:16:35,960
because your revenue is flat regardless of whether they use 5%

378
00:16:35,960 --> 00:16:38,160
or 95% of the product.

379
00:16:38,160 --> 00:16:40,920
Finally, you have no switching costs to keep people around.

380
00:16:40,920 --> 00:16:43,440
When a customer realizes buying direct is cheaper

381
00:16:43,440 --> 00:16:45,600
or finds a partner with a better discount,

382
00:16:45,600 --> 00:16:47,600
they have no structural reason to stay with you.

383
00:16:47,600 --> 00:16:49,920
You have no embedded data and no measurable value

384
00:16:49,920 --> 00:16:51,520
that they would lose by leaving.

385
00:16:51,520 --> 00:16:52,840
You have licensing competence,

386
00:16:52,840 --> 00:16:56,000
but since every other certified partner has that same competence,

387
00:16:56,000 --> 00:16:57,360
you are entirely interchangeable.

388
00:16:57,360 --> 00:17:01,080
I saw one partner survive this by restructuring their entire business

389
00:17:01,080 --> 00:17:03,840
to keep licensing at only 40% of their revenue.

390
00:17:03,840 --> 00:17:06,200
They built advisory services and managed offerings

391
00:17:06,200 --> 00:17:08,120
that connected finance directly to IT,

392
00:17:08,120 --> 00:17:10,720
becoming stewards of the environment instead of just resellers.

393
00:17:10,720 --> 00:17:12,960
By 2023, their total revenue grew

394
00:17:12,960 --> 00:17:15,120
even as their licensing income shrank,

395
00:17:15,120 --> 00:17:17,240
while their competitors who stayed in the old model

396
00:17:17,240 --> 00:17:19,680
saw revenues crater by 65%.

397
00:17:19,680 --> 00:17:21,480
The license reseller model is dying

398
00:17:21,480 --> 00:17:23,440
because it creates no defensible value.

399
00:17:23,440 --> 00:17:26,560
Licensing is critical, but the model itself is purely transactional.

400
00:17:26,560 --> 00:17:29,800
When transactions become a commodity, the model collapses.

401
00:17:29,800 --> 00:17:33,440
Model two, the migration factory.

402
00:17:33,440 --> 00:17:35,320
The migration factory is built on the idea

403
00:17:35,320 --> 00:17:38,360
that cloud adoption creates a never-ending mountain of work.

404
00:17:38,360 --> 00:17:41,800
You build a specialized team, create a repeatable process

405
00:17:41,800 --> 00:17:43,960
and execute migrations at scale.

406
00:17:43,960 --> 00:17:46,480
You grow by riding the wave of cloud adoption

407
00:17:46,480 --> 00:17:49,080
and turning that momentum into billable hours.

408
00:17:49,080 --> 00:17:51,080
This model has created massive wealth

409
00:17:51,080 --> 00:17:53,360
and some of the largest service providers on earth

410
00:17:53,360 --> 00:17:55,880
are essentially just giant migration factories.

411
00:17:55,880 --> 00:17:57,880
You hire specialists, staff projects,

412
00:17:57,880 --> 00:18:00,400
and build a machine that converts digital transformation

413
00:18:00,400 --> 00:18:01,960
into a steady stream of revenue.

414
00:18:01,960 --> 00:18:04,320
The problem is that migrations are a finite resource.

415
00:18:04,320 --> 00:18:07,400
Cloud adoption is a phase, not a permanent state of being.

416
00:18:07,400 --> 00:18:09,440
Every business that intends to move to the cloud

417
00:18:09,440 --> 00:18:10,640
will eventually finish that move

418
00:18:10,640 --> 00:18:13,080
or they will settle into a hybrid strategy.

419
00:18:13,080 --> 00:18:15,280
At some point, the work of shifting workloads

420
00:18:15,280 --> 00:18:17,960
from on-premises to the cloud simply concludes.

421
00:18:17,960 --> 00:18:20,400
The migration wave peaked over the last two years

422
00:18:20,400 --> 00:18:23,400
and while it isn't over, the velocity is clearly slowing down.

423
00:18:23,400 --> 00:18:25,400
We have entered the tail end of the gold rush.

424
00:18:25,400 --> 00:18:27,440
Fewer projects are transformational in scope

425
00:18:27,440 --> 00:18:29,960
and more are incremental, which leads to lower margins

426
00:18:29,960 --> 00:18:32,480
because everyone is fighting over the same shrinking pool

427
00:18:32,480 --> 00:18:33,320
of work.

428
00:18:33,320 --> 00:18:34,960
A migration factory works perfectly

429
00:18:34,960 --> 00:18:36,360
when the pool of work is expanding,

430
00:18:36,360 --> 00:18:38,880
but it breaks the moment the work becomes finite.

431
00:18:38,880 --> 00:18:41,640
Your entire business is predicated on finding the next big wave

432
00:18:41,640 --> 00:18:42,840
and if that wave doesn't arrive,

433
00:18:42,840 --> 00:18:45,440
you are left with massive overhead and empty promises

434
00:18:45,440 --> 00:18:46,480
to investors.

435
00:18:46,480 --> 00:18:48,200
The market that built your revenue model

436
00:18:48,200 --> 00:18:48,960
is cooling off.

437
00:18:48,960 --> 00:18:50,920
Partners who saw this coming started pivoting

438
00:18:50,920 --> 00:18:52,560
long before the wave crested.

439
00:18:52,560 --> 00:18:54,280
They moved into operational management

440
00:18:54,280 --> 00:18:57,680
and created services for post-migration optimization.

441
00:18:57,680 --> 00:18:59,440
They stopped saying, "We'll help you move"

442
00:18:59,440 --> 00:19:01,720
and started saying, "We'll help you run what you have."

443
00:19:01,720 --> 00:19:02,960
Those partners are still growing

444
00:19:02,960 --> 00:19:04,560
while the ones stuck in the factory model

445
00:19:04,560 --> 00:19:06,280
are fighting for low margin scraps

446
00:19:06,280 --> 00:19:08,400
and struggling to keep their staff busy.

447
00:19:08,400 --> 00:19:09,760
The migration factory is dying

448
00:19:09,760 --> 00:19:11,560
because it solves a temporary problem.

449
00:19:11,560 --> 00:19:12,800
Once the problem is solved,

450
00:19:12,800 --> 00:19:14,560
the model has no natural second act.

451
00:19:14,560 --> 00:19:16,840
Model three, the feature-driven MSP.

452
00:19:16,840 --> 00:19:19,440
The feature-driven MSP is perhaps the most dangerous model

453
00:19:19,440 --> 00:19:20,720
because it looks like a strategy,

454
00:19:20,720 --> 00:19:22,960
but it is actually just marketing theater.

455
00:19:22,960 --> 00:19:25,160
This model leads with whatever is new.

456
00:19:25,160 --> 00:19:27,480
If Microsoft releases a co-pilot capability

457
00:19:27,480 --> 00:19:28,720
or a defender upgrade,

458
00:19:28,720 --> 00:19:31,480
that becomes the sales pitch and the webinar topic.

459
00:19:31,480 --> 00:19:32,840
The strategy is simple.

460
00:19:32,840 --> 00:19:36,160
Microsoft releases a feature, you market it as critical

461
00:19:36,160 --> 00:19:37,600
and you get paid to turn it on.

462
00:19:37,600 --> 00:19:39,840
The foundational mistake here is believing

463
00:19:39,840 --> 00:19:41,520
that feature adoption is the same thing

464
00:19:41,520 --> 00:19:42,720
as business transformation.

465
00:19:42,720 --> 00:19:44,800
Customers do not actually care about features.

466
00:19:44,800 --> 00:19:46,040
They care about outcomes.

467
00:19:46,040 --> 00:19:47,920
If you deploy co-pilot into a company

468
00:19:47,920 --> 00:19:49,960
that hasn't redesigned its workflows,

469
00:19:49,960 --> 00:19:52,080
adoption will stay low and no value will be created.

470
00:19:52,080 --> 00:19:54,440
And you've turned on a light switch in an empty room

471
00:19:54,440 --> 00:19:57,320
when you build your business around the Microsoft roadmap.

472
00:19:57,320 --> 00:19:59,280
You have effectively outsourced your thinking,

473
00:19:59,280 --> 00:20:02,000
you are reactive and subservient to someone else's velocity.

474
00:20:02,000 --> 00:20:04,200
Microsoft releases features to build a platform

475
00:20:04,200 --> 00:20:06,240
not to create revenue opportunities for you.

476
00:20:06,240 --> 00:20:08,160
This also creates a skeptical customer.

477
00:20:08,160 --> 00:20:09,920
They see a never-ending parade of pitches

478
00:20:09,920 --> 00:20:12,400
for co-pilot agents and new AI models

479
00:20:12,400 --> 00:20:14,440
each coming with its own implementation cost

480
00:20:14,440 --> 00:20:15,760
and training requirements.

481
00:20:15,760 --> 00:20:19,000
Eventually the customer asks if they actually need any of this

482
00:20:19,000 --> 00:20:21,240
or if they are just being sold to.

483
00:20:21,240 --> 00:20:22,440
Once that doubt enters the room,

484
00:20:22,440 --> 00:20:24,560
you lose your position as a trusted advisor

485
00:20:24,560 --> 00:20:26,960
and become just another vendor defending the hype.

486
00:20:26,960 --> 00:20:28,520
The feature driven MSP is dying

487
00:20:28,520 --> 00:20:31,040
because it sells complexity instead of preventing it.

488
00:20:31,040 --> 00:20:34,160
Customers have become much better at spotting the difference.

489
00:20:34,160 --> 00:20:37,120
Why technical excellence no longer differentiates?

490
00:20:37,120 --> 00:20:39,320
When you bring these three failing models together,

491
00:20:39,320 --> 00:20:42,840
you can see why technical competence has lost its strategic value.

492
00:20:42,840 --> 00:20:45,080
Being good at the technology is now the baseline.

493
00:20:45,080 --> 00:20:47,160
It is documented, automatable,

494
00:20:47,160 --> 00:20:48,760
and increasingly handled by AI.

495
00:20:48,760 --> 00:20:51,360
Your customers already assume you can handle deployment,

496
00:20:51,360 --> 00:20:54,040
security configuration, and identity management.

497
00:20:54,040 --> 00:20:55,880
These are no longer differentiators.

498
00:20:55,880 --> 00:20:57,640
They are just the cost of entry.

499
00:20:57,640 --> 00:21:00,360
However, there is something your customer does not have.

500
00:21:00,360 --> 00:21:02,080
Economic telemetry.

501
00:21:02,080 --> 00:21:04,360
They lack any systematic way to see the relationship

502
00:21:04,360 --> 00:21:06,240
between what they spend and what they get.

503
00:21:06,240 --> 00:21:08,520
They don't know what percentage of their E5 licenses

504
00:21:08,520 --> 00:21:10,600
are actually active or which security tools

505
00:21:10,600 --> 00:21:13,440
they are paying for that overlap with things they already own.

506
00:21:13,440 --> 00:21:15,920
They cannot tell you if co-pilot is reducing work

507
00:21:15,920 --> 00:21:18,040
or if employees are just playing with it.

508
00:21:18,040 --> 00:21:19,720
They also lack architectural clarity.

509
00:21:19,720 --> 00:21:23,480
Most organizations have no governance model to stop permission entropy

510
00:21:23,480 --> 00:21:25,880
or align their information architecture.

511
00:21:25,880 --> 00:21:29,080
They don't have a way to connect the CFO to IT operations.

512
00:21:29,080 --> 00:21:30,960
So the person signing the checks understands

513
00:21:30,960 --> 00:21:32,520
what is actually driving the cloud bill.

514
00:21:32,520 --> 00:21:35,280
Your customer can find technical implementation anywhere.

515
00:21:35,280 --> 00:21:37,720
What they cannot find is the discipline to measure

516
00:21:37,720 --> 00:21:40,600
whether that implementation actually matters.

517
00:21:40,600 --> 00:21:43,200
This is not a technical hurdle, it is an economic one.

518
00:21:43,200 --> 00:21:45,360
And that is where the real leverage is found.

519
00:21:45,360 --> 00:21:47,520
The opportunity isn't in turning features on.

520
00:21:47,520 --> 00:21:50,400
The opportunity is in preventing inefficiency

521
00:21:50,400 --> 00:21:53,560
and connecting technical choices to financial outcomes.

522
00:21:53,560 --> 00:21:56,480
It is about being the bridge between the CFO and the CFO

523
00:21:56,480 --> 00:21:58,600
that makes the entire conversation make sense.

524
00:21:58,600 --> 00:22:00,080
That isn't technical expertise.

525
00:22:00,080 --> 00:22:02,080
That is structural economic stewardship

526
00:22:02,080 --> 00:22:05,560
and that is exactly what the market is going to pay for next.

527
00:22:05,560 --> 00:22:06,560
The evolution.

528
00:22:06,560 --> 00:22:08,720
Now that we have identified what is dying,

529
00:22:08,720 --> 00:22:10,640
we have to look at what is being born.

530
00:22:10,640 --> 00:22:12,400
This is not a theoretical exercise.

531
00:22:12,400 --> 00:22:14,160
I am describing an operating model

532
00:22:14,160 --> 00:22:15,880
that is already surfacing in the market.

533
00:22:15,880 --> 00:22:19,280
The partners who grasp this will own their customer relationships

534
00:22:19,280 --> 00:22:21,920
for the next 10 years, while those who ignore it

535
00:22:21,920 --> 00:22:23,920
will watch their clients become interchangeable

536
00:22:23,920 --> 00:22:25,920
with any other certified firm.

537
00:22:25,920 --> 00:22:28,800
This shift requires you to completely reframe your identity

538
00:22:28,800 --> 00:22:29,720
and your offering.

539
00:22:29,720 --> 00:22:32,280
You are no longer an implementer, you are an operator,

540
00:22:32,280 --> 00:22:33,920
you are not selling one-off projects,

541
00:22:33,920 --> 00:22:35,720
you are providing long term stewardship.

542
00:22:35,720 --> 00:22:37,800
Your value no longer lives in what you can turn on,

543
00:22:37,800 --> 00:22:39,760
but in your ability to prevent what shouldn't happen

544
00:22:39,760 --> 00:22:41,280
and guide what should.

545
00:22:41,280 --> 00:22:44,720
The Microsoft economic steward reframing the ISP role.

546
00:22:44,720 --> 00:22:47,160
Let me introduce a new archetype for the industry,

547
00:22:47,160 --> 00:22:49,000
the Microsoft economic steward.

548
00:22:49,000 --> 00:22:50,680
An economic steward functions differently

549
00:22:50,680 --> 00:22:52,200
than a traditional implementer.

550
00:22:52,200 --> 00:22:54,160
While an implementer configures a system,

551
00:22:54,160 --> 00:22:56,720
a steward operates it, an implementer fixes a problem

552
00:22:56,720 --> 00:22:59,200
after it breaks, but a steward prevents the break

553
00:22:59,200 --> 00:23:00,400
from ever occurring.

554
00:23:00,400 --> 00:23:03,000
One responds to a request while the other anticipates

555
00:23:03,000 --> 00:23:05,280
a business need before it is even voiced.

556
00:23:05,280 --> 00:23:08,200
Here is how an economic steward actually functions.

557
00:23:08,200 --> 00:23:11,800
They map license investments directly to realized capabilities.

558
00:23:11,800 --> 00:23:13,880
They ask what you bought and what those tools

559
00:23:13,880 --> 00:23:16,600
were designed to do versus what you are actually getting from them.

560
00:23:16,600 --> 00:23:19,040
This process identifies capabilities you pay for,

561
00:23:19,040 --> 00:23:21,080
but never use or features you use

562
00:23:21,080 --> 00:23:23,880
that could be delivered through a cheaper, more efficient license.

563
00:23:23,880 --> 00:23:26,920
They eliminate the overlap across your various tool sets.

564
00:23:26,920 --> 00:23:29,600
Most organizations suffer from massive software sprawl.

565
00:23:29,600 --> 00:23:32,440
They bought third-party security tools before moving to E5

566
00:23:32,440 --> 00:23:34,880
or they pay for backup solutions that overlap

567
00:23:34,880 --> 00:23:36,400
with native Azure capabilities.

568
00:23:36,400 --> 00:23:37,840
They might have identity providers

569
00:23:37,840 --> 00:23:40,240
that duplicate entry or communication platforms

570
00:23:40,240 --> 00:23:41,520
that create redundant noise.

571
00:23:41,520 --> 00:23:44,520
An economic steward finds these gaps and guides consolidation

572
00:23:44,520 --> 00:23:46,760
to cut both cost and complexity.

573
00:23:46,760 --> 00:23:49,840
They align co-pilot with measurable business workflows.

574
00:23:49,840 --> 00:23:51,760
They don't just ask if people are using the AI,

575
00:23:51,760 --> 00:23:55,680
they ask which specific workflows the AI is actually changing.

576
00:23:55,680 --> 00:23:57,600
Whether it is document creation, decision making,

577
00:23:57,600 --> 00:24:00,280
or reporting cycles, they measure the impact.

578
00:24:00,280 --> 00:24:01,880
They connect the act of adoption

579
00:24:01,880 --> 00:24:03,720
to a specific business outcome

580
00:24:03,720 --> 00:24:07,000
to create a clear line of sight between the AI and the bottom line.

581
00:24:07,000 --> 00:24:09,000
They run rigorous entitlement reviews.

582
00:24:09,000 --> 00:24:11,000
They look at how many identities are provisioned

583
00:24:11,000 --> 00:24:13,960
and how many are actually active or sitting dormant.

584
00:24:13,960 --> 00:24:15,760
They find accounts with excessive permissions

585
00:24:15,760 --> 00:24:17,080
that were never cleaned up.

586
00:24:17,080 --> 00:24:19,560
By systematizing what usually happens by accident,

587
00:24:19,560 --> 00:24:22,440
they turn basic hygiene into a form of cost prevention.

588
00:24:22,440 --> 00:24:25,120
They bridge the gap between finance and IT operations.

589
00:24:25,120 --> 00:24:27,800
They build a discipline where the CFO finally understands

590
00:24:27,800 --> 00:24:29,240
what is driving the cloud bill

591
00:24:29,240 --> 00:24:32,560
and the CIO can explain why certain capabilities are necessary.

592
00:24:32,560 --> 00:24:35,000
This moves budget conversations away from guesses

593
00:24:35,000 --> 00:24:36,840
and grounds them in hard data.

594
00:24:36,840 --> 00:24:39,000
They design quarterly optimization cycles

595
00:24:39,000 --> 00:24:40,440
rather than annual reviews.

596
00:24:40,440 --> 00:24:42,880
Every 90 days they ask what changed, what is working,

597
00:24:42,880 --> 00:24:44,240
and what needs to be adjusted.

598
00:24:44,240 --> 00:24:47,200
This turns your work into a continuous operating rhythm

599
00:24:47,200 --> 00:24:50,400
instead of a series of episodic, disconnected projects.

600
00:24:50,400 --> 00:24:53,320
This approaches architectural and economic at the same time.

601
00:24:53,320 --> 00:24:55,400
It requires you to understand the platform

602
00:24:55,400 --> 00:24:57,440
but it also demands an understanding of cost,

603
00:24:57,440 --> 00:24:59,080
efficiency, and business impact.

604
00:24:59,080 --> 00:25:00,760
You stop speaking the language of features

605
00:25:00,760 --> 00:25:02,920
and start speaking the language of risk and cost.

606
00:25:02,920 --> 00:25:04,960
The economic steward is not a technical implementer.

607
00:25:04,960 --> 00:25:06,120
They are a tenant operator.

608
00:25:06,120 --> 00:25:08,560
They don't just set something up and leave the building.

609
00:25:08,560 --> 00:25:10,280
They operate the environment and stay.

610
00:25:10,280 --> 00:25:11,400
They don't hand off the keys.

611
00:25:11,400 --> 00:25:12,400
They own the results.

612
00:25:12,400 --> 00:25:14,720
This represents the shift from a deterministic model

613
00:25:14,720 --> 00:25:16,080
to a probabilistic one.

614
00:25:16,080 --> 00:25:18,720
In a deterministic world, you configure a policy

615
00:25:18,720 --> 00:25:20,720
and assume security is handled.

616
00:25:20,720 --> 00:25:23,480
In a probabilistic world, you continuously monitor access

617
00:25:23,480 --> 00:25:25,960
patterns and adapt policies based on threat data.

618
00:25:25,960 --> 00:25:27,120
One is a binary switch.

619
00:25:27,120 --> 00:25:29,320
The other is a continuous process.

620
00:25:29,320 --> 00:25:30,800
The tenant stewardship model.

621
00:25:30,800 --> 00:25:32,480
To make this work, you need a framework.

622
00:25:32,480 --> 00:25:34,200
I call this the tenant stewardship model.

623
00:25:34,200 --> 00:25:36,120
It stands on three pillars that separate

624
00:25:36,120 --> 00:25:39,520
the true stewards from the basic implementers.

625
00:25:39,520 --> 00:25:40,360
Pillar one.

626
00:25:40,360 --> 00:25:41,680
Economic telemetry.

627
00:25:41,680 --> 00:25:43,800
Economic telemetry is not what you think it is.

628
00:25:43,800 --> 00:25:46,520
It has nothing to do with adoption metrics or log-in counts.

629
00:25:46,520 --> 00:25:48,720
It is not about how many people use teams

630
00:25:48,720 --> 00:25:50,520
or how many sharepoint sites exist.

631
00:25:50,520 --> 00:25:53,280
Those are vanity metrics that prove activity happened,

632
00:25:53,280 --> 00:25:55,680
but fail to prove that any value was created.

633
00:25:55,680 --> 00:25:58,800
Economic telemetry is about cost to value visibility.

634
00:25:58,800 --> 00:26:01,400
It requires specific questions and quantified answers.

635
00:26:01,400 --> 00:26:04,000
You must ask what percentage of E5 capabilities

636
00:26:04,000 --> 00:26:05,000
are actually active.

637
00:26:05,000 --> 00:26:07,040
It isn't enough to know if E5 is deployed.

638
00:26:07,040 --> 00:26:09,840
You need to know which of the 17 major capability areas

639
00:26:09,840 --> 00:26:11,480
are being used and which are dormant.

640
00:26:11,480 --> 00:26:13,520
You might find features you pay for that

641
00:26:13,520 --> 00:26:15,920
should be provisioned on demand rather than

642
00:26:15,920 --> 00:26:17,040
through a permanent license.

643
00:26:17,040 --> 00:26:19,240
You need to know how many identities are provisioned

644
00:26:19,240 --> 00:26:20,560
but underutilized.

645
00:26:20,560 --> 00:26:22,120
You might have a license for every employee,

646
00:26:22,120 --> 00:26:24,680
but not every person needs every high-end feature.

647
00:26:24,680 --> 00:26:26,560
Some roles don't require advanced security

648
00:26:26,560 --> 00:26:28,840
and some contractors only need limited access.

649
00:26:28,840 --> 00:26:30,480
Then entropy audit usually reveals

650
00:26:30,480 --> 00:26:33,320
that 20% of identity spend is pure waste.

651
00:26:33,320 --> 00:26:35,840
You have to identify which security features duplicate tools

652
00:26:35,840 --> 00:26:36,720
you already own.

653
00:26:36,720 --> 00:26:39,720
If you have defender but also pay for third-party firewalls

654
00:26:39,720 --> 00:26:42,400
or purview DLP alongside a legacy tool,

655
00:26:42,400 --> 00:26:43,760
you have a redundancy problem.

656
00:26:43,760 --> 00:26:45,520
Consolidation in this area alone often

657
00:26:45,520 --> 00:26:48,440
recovers 30% of the total tool spend for a customer.

658
00:26:48,440 --> 00:26:50,280
You must determine which co-pilot usage

659
00:26:50,280 --> 00:26:52,080
actually reduces workflow time.

660
00:26:52,080 --> 00:26:53,520
Don't look at adoption percentages.

661
00:26:53,520 --> 00:26:54,560
Look at outcomes.

662
00:26:54,560 --> 00:26:57,800
If co-pilot summarizes meetings or drafts customer responses,

663
00:26:57,800 --> 00:26:59,640
you need to quantify the minutes saved.

664
00:26:59,640 --> 00:27:03,120
If a team produces the same output with 5% less labor,

665
00:27:03,120 --> 00:27:05,040
that is a measurable economic win.

666
00:27:05,040 --> 00:27:07,760
You need to see where license spend is concentrated

667
00:27:07,760 --> 00:27:09,640
and where it is being thrown away.

668
00:27:09,640 --> 00:27:11,400
Some departments use their tools heavily

669
00:27:11,400 --> 00:27:12,680
while others barely touch them.

670
00:27:12,680 --> 00:27:15,080
You might have teams on E5 who only need E3

671
00:27:15,080 --> 00:27:17,680
or people on basic who actually require premium.

672
00:27:17,680 --> 00:27:20,360
Economic telemetry means you understand this distribution

673
00:27:20,360 --> 00:27:22,280
and can fix the over-provisioning.

674
00:27:22,280 --> 00:27:23,760
This requires you to look past

675
00:27:23,760 --> 00:27:25,800
the native Microsoft reporting tools.

676
00:27:25,800 --> 00:27:27,640
The admin center tells you what is deployed

677
00:27:27,640 --> 00:27:29,720
but it won't tell you if it's delivering a return.

678
00:27:29,720 --> 00:27:30,760
You have to build visibility

679
00:27:30,760 --> 00:27:33,280
that connects technical metrics to financial impact.

680
00:27:33,280 --> 00:27:36,440
You need to know the cost per user to deliver a capability

681
00:27:36,440 --> 00:27:38,560
versus the output that user produces.

682
00:27:38,560 --> 00:27:40,200
The CFO wants this visibility

683
00:27:40,200 --> 00:27:42,240
and the CIO assumes you already have it.

684
00:27:42,240 --> 00:27:43,520
Neither of them actually does.

685
00:27:43,520 --> 00:27:46,360
This information gap is where your competitive mode lives.

686
00:27:46,360 --> 00:27:48,560
Once you can answer these questions with data,

687
00:27:48,560 --> 00:27:50,040
you have leveraged that the customer

688
00:27:50,040 --> 00:27:51,640
cannot replicate internally.

689
00:27:51,640 --> 00:27:54,120
That is the basis for structural revenue.

690
00:27:54,120 --> 00:27:56,280
Pillar two, architectural stewardship.

691
00:27:56,280 --> 00:27:58,640
Architectural stewardship moves you away from the help desk

692
00:27:58,640 --> 00:27:59,960
and into a proactive role.

693
00:27:59,960 --> 00:28:02,480
It covers four specific areas of the environment.

694
00:28:02,480 --> 00:28:04,800
First is identity lifecycle management.

695
00:28:04,800 --> 00:28:05,880
This includes provisioning,

696
00:28:05,880 --> 00:28:07,800
deprovisioning and constant access reviews.

697
00:28:07,800 --> 00:28:10,400
Identity is the control plane of the modern enterprise.

698
00:28:10,400 --> 00:28:11,960
If you do not control the identity,

699
00:28:11,960 --> 00:28:13,200
you do not control the access

700
00:28:13,200 --> 00:28:15,280
and you certainly cannot govern the system.

701
00:28:15,280 --> 00:28:18,040
This is a continuous job, not a one-time setup.

702
00:28:18,040 --> 00:28:20,280
Second is the reduction of permission entropy.

703
00:28:20,280 --> 00:28:21,840
This is a silent cost multiplier.

704
00:28:21,840 --> 00:28:23,480
Every project that gets abandoned

705
00:28:23,480 --> 00:28:26,720
leaves behind often accounts and excessive permissions.

706
00:28:26,720 --> 00:28:29,080
Every time a company reorganizes access rights

707
00:28:29,080 --> 00:28:31,120
drift away from actual job roles.

708
00:28:31,120 --> 00:28:33,720
Over time, the principle of least privilege disappears.

709
00:28:33,720 --> 00:28:35,240
This entropy is a security risk,

710
00:28:35,240 --> 00:28:37,880
but it is also a massive driver of hidden costs.

711
00:28:37,880 --> 00:28:40,160
Third is the design of a governance operating model.

712
00:28:40,160 --> 00:28:41,360
This is structural work.

713
00:28:41,360 --> 00:28:43,880
You define who approves access when they do it

714
00:28:43,880 --> 00:28:45,640
and what the process looks like.

715
00:28:45,640 --> 00:28:47,360
You establish the escalation paths

716
00:28:47,360 --> 00:28:48,800
and the exception handling.

717
00:28:48,800 --> 00:28:51,520
These become repeatable and auditable processes

718
00:28:51,520 --> 00:28:53,200
that prevent the ad hoc decisions

719
00:28:53,200 --> 00:28:54,680
that lead to system sprawl.

720
00:28:54,680 --> 00:28:56,880
Fourth is information architecture alignment.

721
00:28:56,880 --> 00:28:59,480
The way data is structured in Microsoft 365

722
00:28:59,480 --> 00:29:02,360
should mirror the way the business actually functions.

723
00:29:02,360 --> 00:29:04,200
You manage how SharePoint is organized

724
00:29:04,200 --> 00:29:06,080
and how teams discover information.

725
00:29:06,080 --> 00:29:08,600
This prevents duplicate versions and fragmented data.

726
00:29:08,600 --> 00:29:10,080
It is not a design you finish,

727
00:29:10,080 --> 00:29:11,800
it is a discipline you maintain.

728
00:29:11,800 --> 00:29:14,400
None of this is a project, it is a retainer-based service.

729
00:29:14,400 --> 00:29:16,880
You run the quarterly reviews and update policies

730
00:29:16,880 --> 00:29:17,920
as the business evolves.

731
00:29:17,920 --> 00:29:20,920
You audit the roles and prevent the technical drift.

732
00:29:20,920 --> 00:29:22,200
This becomes an operating cost,

733
00:29:22,200 --> 00:29:24,320
the customer gladly accepts

734
00:29:24,320 --> 00:29:26,520
because the alternative of uncontrolled sprawl

735
00:29:26,520 --> 00:29:27,680
is much more expensive.

736
00:29:27,680 --> 00:29:28,880
Governance is not overhead.

737
00:29:28,880 --> 00:29:31,000
It is risk reduction and cost prevention.

738
00:29:31,000 --> 00:29:33,440
Once a customer understands that, they will fund it.

739
00:29:33,440 --> 00:29:35,240
The cost of not governing is invisible

740
00:29:35,240 --> 00:29:36,800
until it turns into a crisis.

741
00:29:36,800 --> 00:29:39,640
Your job is to make the cost of doing nothing visible

742
00:29:39,640 --> 00:29:42,600
so that the cost of your stewardship is an easy choice.

743
00:29:42,600 --> 00:29:45,560
Pillar three, AI value governance.

744
00:29:45,560 --> 00:29:46,680
This is the newest pillar

745
00:29:46,680 --> 00:29:49,200
and the highest leverage opportunity in the market today.

746
00:29:49,200 --> 00:29:50,720
Copilot is not just another feature.

747
00:29:50,720 --> 00:29:52,080
It is a workflow multiplier.

748
00:29:52,080 --> 00:29:53,680
However, without governance,

749
00:29:53,680 --> 00:29:55,800
Copilot adoption is just high-pretending

750
00:29:55,800 --> 00:29:57,080
to be a transformation.

751
00:29:57,080 --> 00:29:58,640
If you just turn on the capability

752
00:29:58,640 --> 00:30:00,680
without changing how work happens,

753
00:30:00,680 --> 00:30:02,320
you haven't actually improved the business.

754
00:30:02,320 --> 00:30:04,760
You have to ask which workflows are actually changing.

755
00:30:04,760 --> 00:30:06,600
Are people drafting emails faster?

756
00:30:06,600 --> 00:30:09,800
Is meeting summarization reducing the time spent on notes?

757
00:30:09,800 --> 00:30:12,200
Is data analysis in Excel becoming more efficient?

758
00:30:12,200 --> 00:30:13,840
You need to find the specific processes

759
00:30:13,840 --> 00:30:15,880
that show a measurable reduction in time.

760
00:30:15,880 --> 00:30:18,560
You need to calculate the actual time savings per user.

761
00:30:18,560 --> 00:30:20,920
If you are paying $30 a month for a license

762
00:30:20,920 --> 00:30:22,960
and a user saves 10 minutes a day,

763
00:30:22,960 --> 00:30:25,560
you can calculate the economic value of that tool.

764
00:30:25,560 --> 00:30:28,320
You have to prove whether the customer is getting their money back

765
00:30:28,320 --> 00:30:30,360
or just wasting it on a shiny new toy.

766
00:30:30,360 --> 00:30:32,600
You also need to see where adoption is stalling.

767
00:30:32,600 --> 00:30:34,280
Some departments will embrace the AI

768
00:30:34,280 --> 00:30:37,240
while others will ignore it or use it incorrectly.

769
00:30:37,240 --> 00:30:40,200
Identifying these patterns tells you where to invest in training

770
00:30:40,200 --> 00:30:42,520
and where to admit the tool isn't a good fit.

771
00:30:42,520 --> 00:30:45,360
This information is vital for guiding future investment.

772
00:30:45,360 --> 00:30:47,880
AI value governance connects usage to outcomes

773
00:30:47,880 --> 00:30:50,160
like decision latency and knowledge retrieval.

774
00:30:50,160 --> 00:30:51,280
These things are measurable.

775
00:30:51,280 --> 00:30:53,680
They provide the justification for spending more

776
00:30:53,680 --> 00:30:55,880
or the evidence needed to scale back.

777
00:30:55,880 --> 00:30:58,520
This is how you differentiate yourself in the coming years.

778
00:30:58,520 --> 00:31:00,680
Without this pillar, you are just selling licenses

779
00:31:00,680 --> 00:31:01,680
and hoping for the best.

780
00:31:01,680 --> 00:31:04,880
With it, you are architecting the customer's AI maturity.

781
00:31:04,880 --> 00:31:06,360
You are the one guiding the adoption

782
00:31:06,360 --> 00:31:08,880
and proving the impact with hard numbers.

783
00:31:08,880 --> 00:31:11,600
Putting it together, the tenant stewardship model.

784
00:31:11,600 --> 00:31:14,360
When you integrate these three pillars, you change the game.

785
00:31:14,360 --> 00:31:16,560
Economic telemetry shows you what is happening.

786
00:31:16,560 --> 00:31:19,280
Architectural stewardship creates the model to manage it.

787
00:31:19,280 --> 00:31:22,000
AI value governance measures the impact of the new tools.

788
00:31:22,000 --> 00:31:24,720
Together, they form the tenant stewardship model.

789
00:31:24,720 --> 00:31:26,520
This is not a consulting engagement

790
00:31:26,520 --> 00:31:29,520
where you write a report and disappear after 90 days.

791
00:31:29,520 --> 00:31:31,200
This is a permanent operating model.

792
00:31:31,200 --> 00:31:32,520
You become the tenant operator.

793
00:31:32,520 --> 00:31:34,640
You take responsibility for the economic outcomes,

794
00:31:34,640 --> 00:31:35,800
not just the technical ones.

795
00:31:35,800 --> 00:31:37,640
You run the reviews, maintain the dashboards

796
00:31:37,640 --> 00:31:38,720
and conduct the audits.

797
00:31:38,720 --> 00:31:40,400
The finance team finally gets visibility

798
00:31:40,400 --> 00:31:41,680
into what they are paying for.

799
00:31:41,680 --> 00:31:43,760
The IT team gets a framework that scales

800
00:31:43,760 --> 00:31:45,840
without them having to build it from scratch.

801
00:31:45,840 --> 00:31:47,280
The business leaders get proof

802
00:31:47,280 --> 00:31:49,920
that their technology spend is actually working.

803
00:31:49,920 --> 00:31:52,880
This moves you from being a cost center to a value center.

804
00:31:52,880 --> 00:31:55,520
You are no longer a line item in the IT budget

805
00:31:55,520 --> 00:31:56,680
that can be cut.

806
00:31:56,680 --> 00:31:59,080
You are a strategic necessity that prevents

807
00:31:59,080 --> 00:32:01,360
other costs from spiraling out of control.

808
00:32:01,360 --> 00:32:03,040
You become structural to their business.

809
00:32:03,040 --> 00:32:05,440
Your revenue model shifts from one-off projects

810
00:32:05,440 --> 00:32:07,720
to steady retainers and optimization fees.

811
00:32:07,720 --> 00:32:10,400
Your margins are no longer tied to the cost of your labor

812
00:32:10,400 --> 00:32:12,400
but to the value of the problems you prevent.

813
00:32:12,400 --> 00:32:14,400
This is how you escape the commodity trap.

814
00:32:14,400 --> 00:32:16,160
Partners who work this way are growing

815
00:32:16,160 --> 00:32:17,680
while everyone else is shrinking.

816
00:32:17,680 --> 00:32:19,000
They keep their customers longer

817
00:32:19,000 --> 00:32:20,280
and they command higher prices

818
00:32:20,280 --> 00:32:22,880
because they aren't competing on the cost of delivery.

819
00:32:22,880 --> 00:32:25,600
They are competing on the scale of their economic impact.

820
00:32:25,600 --> 00:32:27,960
The future ISP is not a technical implementer.

821
00:32:27,960 --> 00:32:31,120
You do not implement Microsoft 365, you operate it.

822
00:32:31,120 --> 00:32:33,080
You do not deploy co-pilot, you govern it.

823
00:32:33,080 --> 00:32:35,520
You do not manage licenses, you optimize them.

824
00:32:35,520 --> 00:32:39,080
That is the only sustainable position left in this market.

825
00:32:39,080 --> 00:32:39,920
The mandate.

826
00:32:39,920 --> 00:32:41,160
We have now reached the point

827
00:32:41,160 --> 00:32:43,360
where the diagnosis must become a decision.

828
00:32:43,360 --> 00:32:44,640
You understand what is dying

829
00:32:44,640 --> 00:32:46,000
and you see what is emerging.

830
00:32:46,000 --> 00:32:47,960
The only question left is whether you will act

831
00:32:47,960 --> 00:32:50,320
on this or just treat it as an interesting theory

832
00:32:50,320 --> 00:32:52,240
while you keep doing what you've always done.

833
00:32:52,240 --> 00:32:53,800
Let me be very clear about this.

834
00:32:53,800 --> 00:32:56,760
This is not a slow drift that will take a decade to arrive.

835
00:32:56,760 --> 00:32:59,280
These structural shifts are happening right now.

836
00:32:59,280 --> 00:33:01,000
The margins are already shrinking

837
00:33:01,000 --> 00:33:03,280
and the services are already becoming commodities.

838
00:33:03,280 --> 00:33:05,160
The question is not whether the change is coming.

839
00:33:05,160 --> 00:33:07,240
The question is whether you will lead that change

840
00:33:07,240 --> 00:33:08,240
or be crushed by it.

841
00:33:08,240 --> 00:33:09,840
The time to decide is right now.

842
00:33:09,840 --> 00:33:11,200
You cannot wait for next quarter

843
00:33:11,200 --> 00:33:13,120
or wait until the pain becomes unbearable.

844
00:33:13,120 --> 00:33:14,360
You have to move.

845
00:33:14,360 --> 00:33:16,840
The structural reality, what is actually happening?

846
00:33:16,840 --> 00:33:19,000
Let me state the structural realities clearly

847
00:33:19,000 --> 00:33:20,960
because clarity removes the option to pretend

848
00:33:20,960 --> 00:33:22,040
you don't understand.

849
00:33:22,040 --> 00:33:24,600
Margin pressure is structural rather than cyclical.

850
00:33:24,600 --> 00:33:26,400
And the compression of the CSP program

851
00:33:26,400 --> 00:33:28,240
combined with the direct EA transition

852
00:33:28,240 --> 00:33:30,960
and pricing volatility are not just temporary market

853
00:33:30,960 --> 00:33:31,920
disruptions.

854
00:33:31,920 --> 00:33:33,840
These shifts are the inevitable consequence

855
00:33:33,840 --> 00:33:36,920
of a market maturing from being dependent on specialists

856
00:33:36,920 --> 00:33:38,640
to becoming self-service capable.

857
00:33:38,640 --> 00:33:40,560
Microsoft improves its own margins

858
00:33:40,560 --> 00:33:43,360
as it captures revenue directly from the source

859
00:33:43,360 --> 00:33:45,040
while partner margins compress

860
00:33:45,040 --> 00:33:47,040
as their value shifts from intermediation

861
00:33:47,040 --> 00:33:50,120
to implementation and eventually to optional advisory.

862
00:33:50,120 --> 00:33:52,560
That compression will continue as long as the underlying

863
00:33:52,560 --> 00:33:55,400
economics haven't shifted to where the market actually values

864
00:33:55,400 --> 00:33:57,240
stewardship over deployment.

865
00:33:57,240 --> 00:33:58,720
You cannot price your way out of this

866
00:33:58,720 --> 00:34:00,440
and you cannot certify your way out of this

867
00:34:00,440 --> 00:34:03,560
because the only real move left is to shift your entire model.

868
00:34:03,560 --> 00:34:06,120
Commodity services will increase in volume and decrease

869
00:34:06,120 --> 00:34:07,560
in price, which is not an opinion

870
00:34:07,560 --> 00:34:09,360
but an observable economic law.

871
00:34:09,360 --> 00:34:11,920
As services standardize, they become high-rebel

872
00:34:11,920 --> 00:34:13,120
and as they become high-rebel,

873
00:34:13,120 --> 00:34:15,640
they become competitive until price is the only variable

874
00:34:15,640 --> 00:34:16,800
that matters anymore.

875
00:34:16,800 --> 00:34:19,280
The partners who continue offering simple deployment

876
00:34:19,280 --> 00:34:22,080
and implementation services will see their volume increase

877
00:34:22,080 --> 00:34:23,960
because there is always more work to do

878
00:34:23,960 --> 00:34:26,640
but the price for that work will compress relentlessly.

879
00:34:26,640 --> 00:34:29,040
You will find yourself doing more work for less margin

880
00:34:29,040 --> 00:34:30,400
which is not a scaling strategy

881
00:34:30,400 --> 00:34:31,960
but a treadmill that eventually breaks

882
00:34:31,960 --> 00:34:33,600
the people running on it.

883
00:34:33,600 --> 00:34:36,160
Technical competence is now assumed rather than valued

884
00:34:36,160 --> 00:34:38,000
and your customer does not pay you for knowing

885
00:34:38,000 --> 00:34:40,160
how to deploy autopilot because they simply assume

886
00:34:40,160 --> 00:34:42,840
you already know your customer does not contract with you

887
00:34:42,840 --> 00:34:44,560
because you understand conditional access

888
00:34:44,560 --> 00:34:46,760
and they do not choose you because you have mastered

889
00:34:46,760 --> 00:34:49,200
the defender suite as they believe those skills

890
00:34:49,200 --> 00:34:50,800
are just your baseline.

891
00:34:50,800 --> 00:34:52,760
You have built your entire market positioning

892
00:34:52,760 --> 00:34:55,160
on capabilities that have become table stakes

893
00:34:55,160 --> 00:34:57,000
and that is not a sustainable position

894
00:34:57,000 --> 00:34:58,000
in the mature market.

895
00:34:58,000 --> 00:34:59,360
It is a slowly eroding one.

896
00:34:59,360 --> 00:35:02,320
Value migrates upward from implementation to optimization

897
00:35:02,320 --> 00:35:03,880
and from deployment to stewardship.

898
00:35:03,880 --> 00:35:05,640
The economics of the cloud are not based

899
00:35:05,640 --> 00:35:06,960
on deploying infrastructure

900
00:35:06,960 --> 00:35:09,560
but are instead based on optimizing utilization,

901
00:35:09,560 --> 00:35:11,520
preventing waste and realigning costs

902
00:35:11,520 --> 00:35:13,120
to actual outcomes.

903
00:35:13,120 --> 00:35:15,000
The partners who understand this shift early

904
00:35:15,000 --> 00:35:16,520
will be the ones to capture the value

905
00:35:16,520 --> 00:35:18,760
while the partners who stay focused on implementation

906
00:35:18,760 --> 00:35:20,880
will watch that value disappear upstream.

907
00:35:20,880 --> 00:35:22,600
This is not something that might happen in the future

908
00:35:22,600 --> 00:35:24,200
but is something that is happening right now.

909
00:35:24,200 --> 00:35:26,240
The partner economy is dividing rapidly

910
00:35:26,240 --> 00:35:27,720
into two distinct categories

911
00:35:27,720 --> 00:35:29,480
rather than shifting gradually.

912
00:35:29,480 --> 00:35:31,080
There are those who deploy technology

913
00:35:31,080 --> 00:35:33,000
and those who own economic outcomes

914
00:35:33,000 --> 00:35:35,360
and this division has nothing to do with company size.

915
00:35:35,360 --> 00:35:38,120
You can be a 10-person shop operating as an outcome provider

916
00:35:38,120 --> 00:35:40,240
or you can be a 500-person shop operating

917
00:35:40,240 --> 00:35:41,360
as a technology deployer

918
00:35:41,360 --> 00:35:43,480
because the distinction is the operating model

919
00:35:43,480 --> 00:35:44,720
and not the scale.

920
00:35:44,720 --> 00:35:47,080
A 10-person shop that operates as an economic steward

921
00:35:47,080 --> 00:35:48,480
will command pricing power

922
00:35:48,480 --> 00:35:50,440
and they will see customer retention

923
00:35:50,440 --> 00:35:54,200
stay above 90% while they expand their share of the wallet.

924
00:35:54,200 --> 00:35:58,080
A 500-person shop that operates as a deployment factory

925
00:35:58,080 --> 00:35:59,720
will face constant customer churn

926
00:35:59,720 --> 00:36:02,360
and margin compression while competing on price.

927
00:36:02,360 --> 00:36:04,520
They will require constant pipeline velocity

928
00:36:04,520 --> 00:36:06,560
just to offset their natural attrition

929
00:36:06,560 --> 00:36:09,720
which makes the business model increasingly fragile over time.

930
00:36:09,720 --> 00:36:12,840
The question is not whether you have the capability to shift

931
00:36:12,840 --> 00:36:15,160
but whether you have the discipline to actually do it.

932
00:36:15,160 --> 00:36:17,640
You have to decide if you will stop measuring success

933
00:36:17,640 --> 00:36:19,760
by deal velocity and start measuring it

934
00:36:19,760 --> 00:36:21,480
by customer outcomes instead.

935
00:36:21,480 --> 00:36:23,840
You must decide whether you will stop staffing projects

936
00:36:23,840 --> 00:36:25,320
and start operating portfolios

937
00:36:25,320 --> 00:36:27,880
which requires reframing your entire organization

938
00:36:27,880 --> 00:36:30,200
around a completely different value proposition.

939
00:36:30,200 --> 00:36:32,480
The mandate, what partners must do.

940
00:36:32,480 --> 00:36:33,760
Here is what you must do

941
00:36:33,760 --> 00:36:35,560
and I'm not talking about what would be nice

942
00:36:35,560 --> 00:36:37,200
or what might be advantageous.

943
00:36:37,200 --> 00:36:38,280
This is what you must do

944
00:36:38,280 --> 00:36:41,800
if you intend to remain economically viable beyond 2026.

945
00:36:41,800 --> 00:36:43,720
First, you need to audit your current practice

946
00:36:43,720 --> 00:36:45,040
against the three dying models

947
00:36:45,040 --> 00:36:48,120
and identify which one describes your business most accurately.

948
00:36:48,120 --> 00:36:50,400
Are you a licensed reseller, a migration factory,

949
00:36:50,400 --> 00:36:52,200
or a feature driven MSP?

950
00:36:52,200 --> 00:36:54,560
Most partners are some combination of these three

951
00:36:54,560 --> 00:36:56,360
so you need to understand your mix

952
00:36:56,360 --> 00:36:58,000
and what percentage of your revenue depends

953
00:36:58,000 --> 00:37:00,400
on capabilities that are currently commoditizing.

954
00:37:00,400 --> 00:37:02,640
That is not a comfortable audit to perform

955
00:37:02,640 --> 00:37:04,720
but it is necessary because you cannot shift

956
00:37:04,720 --> 00:37:06,000
what you do not acknowledge.

957
00:37:06,000 --> 00:37:07,520
If you are a licensed reseller

958
00:37:07,520 --> 00:37:09,840
you need to understand that you have 18 months left

959
00:37:09,840 --> 00:37:11,000
rather than two years.

960
00:37:11,000 --> 00:37:14,120
The EA transition will be complete in January of 2026

961
00:37:14,120 --> 00:37:15,880
and after that date your licensing revenue

962
00:37:15,880 --> 00:37:17,600
does not normalize but instead collapses.

963
00:37:17,600 --> 00:37:20,280
You need to begin rebuilding your practice immediately

964
00:37:20,280 --> 00:37:22,120
by converting licensing relationships

965
00:37:22,120 --> 00:37:23,800
into advisory relationships.

966
00:37:23,800 --> 00:37:26,440
You need to be introducing economic stewardship concepts

967
00:37:26,440 --> 00:37:27,720
to your customer base now

968
00:37:27,720 --> 00:37:30,200
while you still have the relationship capital to do it

969
00:37:30,200 --> 00:37:33,040
because if you wait until after the January transition

970
00:37:33,040 --> 00:37:34,560
you will be fighting for survival

971
00:37:34,560 --> 00:37:36,360
instead of fighting for positioning.

972
00:37:36,360 --> 00:37:38,080
If you are a migration factory

973
00:37:38,080 --> 00:37:40,240
you must understand that you have already peaked

974
00:37:40,240 --> 00:37:42,840
and are no longer at the beginning of a long adoption curve.

975
00:37:42,840 --> 00:37:45,160
You are passed the midpoint and heading toward the tail

976
00:37:45,160 --> 00:37:47,840
so the real question is not how to grow migration revenue

977
00:37:47,840 --> 00:37:50,680
but how to transition your team from project-based work

978
00:37:50,680 --> 00:37:52,160
to operational work.

979
00:37:52,160 --> 00:37:54,680
The migrations that remain will be lower margin

980
00:37:54,680 --> 00:37:56,680
and your survival depends on ensuring

981
00:37:56,680 --> 00:37:58,040
that you have something to offer

982
00:37:58,040 --> 00:38:00,240
after the migration is complete.

983
00:38:00,240 --> 00:38:02,400
If you do not have a plan for operational management

984
00:38:02,400 --> 00:38:03,560
and continuous stewardship

985
00:38:03,560 --> 00:38:04,760
you have a staffing problem

986
00:38:04,760 --> 00:38:07,520
and a customer retention problem that are both imminent.

987
00:38:07,520 --> 00:38:09,280
If you are a feature driven MSP

988
00:38:09,280 --> 00:38:12,440
you are competing against automation and native capability.

989
00:38:12,440 --> 00:38:14,640
Every time Microsoft releases a new feature

990
00:38:14,640 --> 00:38:16,880
they make it easier for customers to adopt that feature

991
00:38:16,880 --> 00:38:18,960
without you and every time they embed intelligence

992
00:38:18,960 --> 00:38:21,120
into the interface they reduce your role

993
00:38:21,120 --> 00:38:22,720
from implementer to observer.

994
00:38:22,720 --> 00:38:25,080
You cannot outpace the Microsoft product roadmap

995
00:38:25,080 --> 00:38:27,000
and you cannot position yourself faster

996
00:38:27,000 --> 00:38:28,840
than they can ship new updates.

997
00:38:28,840 --> 00:38:31,560
Your only sustainable position is to stop leading

998
00:38:31,560 --> 00:38:33,480
with features and start leading with outcomes

999
00:38:33,480 --> 00:38:35,480
because the market is getting tired of hype

1000
00:38:35,480 --> 00:38:37,720
and wants to know if work is actually reducing

1001
00:38:37,720 --> 00:38:39,320
or if costs are declining.

1002
00:38:39,320 --> 00:38:41,280
Build an economic telemetry capability

1003
00:38:41,280 --> 00:38:44,080
because this is not optional but foundational to your future.

1004
00:38:44,080 --> 00:38:46,000
You need to move beyond the native reporting

1005
00:38:46,000 --> 00:38:48,040
Microsoft provides and build the ability

1006
00:38:48,040 --> 00:38:50,000
to answer what a customer is actually getting

1007
00:38:50,000 --> 00:38:51,200
for their investment.

1008
00:38:51,200 --> 00:38:53,600
This requires looking at cost per user,

1009
00:38:53,600 --> 00:38:56,800
utilization rates and consolidation opportunities

1010
00:38:56,800 --> 00:38:58,400
rather than just listing features.

1011
00:38:58,400 --> 00:39:01,320
This requires an investment in analytics and discipline

1012
00:39:01,320 --> 00:39:02,760
in how you report data

1013
00:39:02,760 --> 00:39:04,080
but once you have it,

1014
00:39:04,080 --> 00:39:06,320
you have something your customer desperately needs

1015
00:39:06,320 --> 00:39:08,680
and cannot easily build themselves.

1016
00:39:08,680 --> 00:39:10,160
Establish architectural stewardship

1017
00:39:10,160 --> 00:39:11,520
as a formal service offering

1018
00:39:11,520 --> 00:39:13,400
because this is where structural revenue lives.

1019
00:39:13,400 --> 00:39:15,960
You should design a repeatable and documented approach

1020
00:39:15,960 --> 00:39:17,240
to identity governance

1021
00:39:17,240 --> 00:39:18,840
while developing a permission audit

1022
00:39:18,840 --> 00:39:21,360
and remediation process that customers can rely on.

1023
00:39:21,360 --> 00:39:22,920
Create a governance operating model

1024
00:39:22,920 --> 00:39:25,000
that your customers can follow and you can monitor

1025
00:39:25,000 --> 00:39:26,920
and make it something they want to fund

1026
00:39:26,920 --> 00:39:29,000
because the alternative of uncontrolled sprawl

1027
00:39:29,000 --> 00:39:30,440
is clearly more expensive.

1028
00:39:30,440 --> 00:39:32,040
Invest in AI value governance

1029
00:39:32,040 --> 00:39:34,200
as this is the new frontier where partners who lead

1030
00:39:34,200 --> 00:39:36,640
will own the customer relationship for the next decade.

1031
00:39:36,640 --> 00:39:38,640
You need to build the capability to answer

1032
00:39:38,640 --> 00:39:40,800
what co-pilot is actually doing for a customer

1033
00:39:40,800 --> 00:39:42,840
by looking at which workflows are changing

1034
00:39:42,840 --> 00:39:44,440
and what costs are being prevented.

1035
00:39:44,440 --> 00:39:45,640
Build a measurement discipline

1036
00:39:45,640 --> 00:39:47,280
and the advisory framework now

1037
00:39:47,280 --> 00:39:49,640
because the partners who can credibly answer these questions

1038
00:39:49,640 --> 00:39:51,560
will be in enormous demand.

1039
00:39:51,560 --> 00:39:53,800
Shift your sales conversation away from what is new

1040
00:39:53,800 --> 00:39:55,840
and start talking about what is not being used

1041
00:39:55,840 --> 00:39:57,000
and why that matters.

1042
00:39:57,000 --> 00:39:59,480
Your pitch should not be about what E5 can do

1043
00:39:59,480 --> 00:40:00,960
but should instead focus on the fact

1044
00:40:00,960 --> 00:40:03,000
that the customer is paying for capabilities

1045
00:40:03,000 --> 00:40:04,200
that nobody is using.

1046
00:40:04,200 --> 00:40:06,320
That conversation moves you from being a seller

1047
00:40:06,320 --> 00:40:08,280
to being an advisor and it transforms you

1048
00:40:08,280 --> 00:40:11,360
from a feature advocate into an economic operator.

1049
00:40:11,360 --> 00:40:14,120
Shift your engagement model from projects to retainers

1050
00:40:14,120 --> 00:40:16,040
which requires the patience and discipline

1051
00:40:16,040 --> 00:40:18,560
to turn down project work that does not serve

1052
00:40:18,560 --> 00:40:19,680
your strategic model.

1053
00:40:19,680 --> 00:40:21,440
Once you have customers on retainers

1054
00:40:21,440 --> 00:40:22,640
for quarterly business reviews

1055
00:40:22,640 --> 00:40:24,040
and monthly optimization cycles,

1056
00:40:24,040 --> 00:40:25,800
your revenue becomes predictable

1057
00:40:25,800 --> 00:40:27,720
and your retention becomes defensible.

1058
00:40:27,720 --> 00:40:30,000
Your ability to expand into other areas

1059
00:40:30,000 --> 00:40:32,280
becomes natural because you are already embedded

1060
00:40:32,280 --> 00:40:34,200
in the customer's decision making process.

1061
00:40:34,200 --> 00:40:35,720
Shift your revenue recognition

1062
00:40:35,720 --> 00:40:37,280
so that you build structural revenue

1063
00:40:37,280 --> 00:40:38,720
that compounds instead of relying

1064
00:40:38,720 --> 00:40:41,120
on episodic invoicing when projects complete.

1065
00:40:41,120 --> 00:40:44,200
You are building advisory margins instead of project margins

1066
00:40:44,200 --> 00:40:45,760
and you are building a portfolio

1067
00:40:45,760 --> 00:40:48,200
of deepening relationships instead of needing

1068
00:40:48,200 --> 00:40:50,320
constant pipeline to offset churn.

1069
00:40:50,320 --> 00:40:51,760
This is not just a revenue increase

1070
00:40:51,760 --> 00:40:53,720
but a complete revenue model transformation

1071
00:40:53,720 --> 00:40:55,480
that has become necessary for survival.

1072
00:40:55,480 --> 00:40:58,440
Then the competitive advantage, why this matters.

1073
00:40:58,440 --> 00:40:59,880
Let me explain exactly what happens

1074
00:40:59,880 --> 00:41:02,520
when you successfully execute this architectural shift.

1075
00:41:02,520 --> 00:41:04,360
You begin to own the economic relationship

1076
00:41:04,360 --> 00:41:06,560
with the customer by gaining visibility

1077
00:41:06,560 --> 00:41:08,560
that they simply do not have internally

1078
00:41:08,560 --> 00:41:10,520
because you understand their cost structure

1079
00:41:10,520 --> 00:41:13,160
and utilization patterns better than their own teams do.

1080
00:41:13,160 --> 00:41:14,760
You can identify every opportunity

1081
00:41:14,760 --> 00:41:16,600
for consolidation and optimization.

1082
00:41:16,600 --> 00:41:19,600
This information asymmetry is not just a technical edge.

1083
00:41:19,600 --> 00:41:21,800
It is your primary competitive advantage

1084
00:41:21,800 --> 00:41:24,120
that translates directly into money, loyalty

1085
00:41:24,120 --> 00:41:25,360
and long term retention.

1086
00:41:25,360 --> 00:41:26,960
Your influence over budget allocation

1087
00:41:26,960 --> 00:41:29,240
will far exceed anything your competitors can offer.

1088
00:41:29,240 --> 00:41:31,320
When a customer is debating whether to purchase

1089
00:41:31,320 --> 00:41:33,960
more licenses or consolidate their existing stack,

1090
00:41:33,960 --> 00:41:36,640
they will call the person who holds the economic telemetry.

1091
00:41:36,640 --> 00:41:37,960
You have the data and the analysis

1092
00:41:37,960 --> 00:41:39,600
to back up a real recommendation

1093
00:41:39,600 --> 00:41:41,600
while your competitors are stuck offering nothing

1094
00:41:41,600 --> 00:41:42,600
but generic opinions.

1095
00:41:42,600 --> 00:41:45,600
That distinction matters because facts create influence

1096
00:41:45,600 --> 00:41:47,840
that a sales pitch cannot replicate.

1097
00:41:47,840 --> 00:41:49,880
This model builds a level of customer loyalty

1098
00:41:49,880 --> 00:41:52,280
that price-driven competition can never touch.

1099
00:41:52,280 --> 00:41:54,640
Your customers stay with you not because the cost of switching

1100
00:41:54,640 --> 00:41:56,520
is high but because you have become operationally

1101
00:41:56,520 --> 00:41:58,840
embedded in the fabric of their business.

1102
00:41:58,840 --> 00:42:01,480
By running quarterly reviews and optimization cycles,

1103
00:42:01,480 --> 00:42:03,600
you provide a level of visibility

1104
00:42:03,600 --> 00:42:06,000
that creates necessary organizational discipline.

1105
00:42:06,000 --> 00:42:09,080
Another vendor might try to undercut your price by 10%,

1106
00:42:09,080 --> 00:42:11,320
but switching to them means losing the governance

1107
00:42:11,320 --> 00:42:13,040
and optimization you enforce.

1108
00:42:13,040 --> 00:42:15,200
Turning a simple cost-benefit calculation

1109
00:42:15,200 --> 00:42:17,680
into a massive risk to business continuity.

1110
00:42:17,680 --> 00:42:19,520
The CFO will trust you because you have learned

1111
00:42:19,520 --> 00:42:21,520
to speak the language of costs and outcomes

1112
00:42:21,520 --> 00:42:22,840
instead of technical jargon.

1113
00:42:22,840 --> 00:42:24,880
You are no longer viewed as a technical vendor

1114
00:42:24,880 --> 00:42:27,040
but as a financial operator who reduces waste

1115
00:42:27,040 --> 00:42:30,040
and connects every dollar of spending to actual business value.

1116
00:42:30,040 --> 00:42:33,040
The CFO values this clarity and will protect your budget

1117
00:42:33,040 --> 00:42:35,600
even when other IT expenditures are being squeezed

1118
00:42:35,600 --> 00:42:36,920
or eliminated entirely.

1119
00:42:36,920 --> 00:42:38,800
Your customers CIO will advocate for you

1120
00:42:38,800 --> 00:42:40,560
because you understand the relationship

1121
00:42:40,560 --> 00:42:42,080
between governance and risk.

1122
00:42:42,080 --> 00:42:44,520
You prevent the kind of sprawl and architectural entropy

1123
00:42:44,520 --> 00:42:47,240
that eventually creates massive security vulnerabilities.

1124
00:42:47,240 --> 00:42:50,120
By enforcing controls and conducting regular audits,

1125
00:42:50,120 --> 00:42:52,600
you improve the overall posture of their infrastructure

1126
00:42:52,600 --> 00:42:56,160
which makes you an essential partner in the eyes of IT leadership.

1127
00:42:56,160 --> 00:42:57,760
Business leaders will trust your direction

1128
00:42:57,760 --> 00:42:59,440
because you can finally prove the impact

1129
00:42:59,440 --> 00:43:00,880
of their technology investments.

1130
00:43:00,880 --> 00:43:02,520
You can show them that co-pilot adoption

1131
00:43:02,520 --> 00:43:04,000
is actually driving productivity

1132
00:43:04,000 --> 00:43:05,480
or that your consolidation efforts

1133
00:43:05,480 --> 00:43:07,320
are lowering the total cost of ownership.

1134
00:43:07,320 --> 00:43:09,600
When you prove that governance improves control,

1135
00:43:09,600 --> 00:43:11,640
business leaders stop seeing you as a vendor

1136
00:43:11,640 --> 00:43:13,200
serving IT and start seeing you

1137
00:43:13,200 --> 00:43:15,800
as a structural extension of their own strategy.

1138
00:43:15,800 --> 00:43:17,560
All of this creates a defensive mode

1139
00:43:17,560 --> 00:43:21,240
that isn't based on certifications or basic feature knowledge.

1140
00:43:21,240 --> 00:43:23,200
This mode is built on structural integration

1141
00:43:23,200 --> 00:43:24,600
into the customer's operations

1142
00:43:24,600 --> 00:43:26,960
and the continuous realization of value.

1143
00:43:26,960 --> 00:43:29,400
Your competitors cannot easily dislodge you

1144
00:43:29,400 --> 00:43:31,480
because you aren't competing on commodities.

1145
00:43:31,480 --> 00:43:33,120
You are competing on outcomes.

1146
00:43:33,120 --> 00:43:36,080
Pricing becomes almost irrelevant when you own the outcome

1147
00:43:36,080 --> 00:43:38,120
and customers stop asking about your margin

1148
00:43:38,120 --> 00:43:40,360
because they are too focused on their own return.

1149
00:43:40,360 --> 00:43:43,480
This shift is not merely about survival in a changing market.

1150
00:43:43,480 --> 00:43:44,800
It is about building a practice

1151
00:43:44,800 --> 00:43:47,560
that is defensible, profitable, and scalable.

1152
00:43:47,560 --> 00:43:49,720
You are finally moving away from the treadmill

1153
00:43:49,720 --> 00:43:51,600
of constant project chasing and building

1154
00:43:51,600 --> 00:43:54,280
an actual sustainable business.

1155
00:43:54,280 --> 00:43:56,560
The choice, explicit and unambiguous.

1156
00:43:56,560 --> 00:43:58,080
Now I want to be absolutely clear

1157
00:43:58,080 --> 00:43:59,480
about the decision you are facing.

1158
00:43:59,480 --> 00:44:01,880
Microsoft partners are not going to disappear

1159
00:44:01,880 --> 00:44:04,440
and the partner channel will remain a vital part

1160
00:44:04,440 --> 00:44:06,080
of the ecosystem for years to come.

1161
00:44:06,080 --> 00:44:08,240
However, the market is currently dividing

1162
00:44:08,240 --> 00:44:09,520
into two distinct categories

1163
00:44:09,520 --> 00:44:12,080
based on their underlying operating models.

1164
00:44:12,080 --> 00:44:14,520
The partners who focus only on deploying technology

1165
00:44:14,520 --> 00:44:16,640
will become increasingly interchangeable

1166
00:44:16,640 --> 00:44:18,240
and driven entirely by price.

1167
00:44:18,240 --> 00:44:20,280
These organizations offer commoditized services

1168
00:44:20,280 --> 00:44:22,880
that lead to high volume but dangerously low margins.

1169
00:44:22,880 --> 00:44:25,520
They face constant pipeline pressure and high customer churn

1170
00:44:25,520 --> 00:44:27,800
because they are easily replaced by marketplace vendors

1171
00:44:27,800 --> 00:44:30,200
or customers who decide to self serve.

1172
00:44:30,200 --> 00:44:32,080
While this remains a viable business model,

1173
00:44:32,080 --> 00:44:35,000
it only works if you can achieve the massive scale required

1174
00:44:35,000 --> 00:44:37,080
to survive on razor thin margins

1175
00:44:37,080 --> 00:44:39,960
which is an incredibly difficult way to run a company.

1176
00:44:39,960 --> 00:44:42,320
On the other hand, those who own economic outcomes

1177
00:44:42,320 --> 00:44:45,160
will enjoy structural protection and healthy margins.

1178
00:44:45,160 --> 00:44:47,560
These partners have defensible positions

1179
00:44:47,560 --> 00:44:48,800
and high retention rates

1180
00:44:48,800 --> 00:44:51,040
because they provide the visibility and discipline

1181
00:44:51,040 --> 00:44:53,400
that customers cannot replicate on their own.

1182
00:44:53,400 --> 00:44:54,880
They are valuable to their customers

1183
00:44:54,880 --> 00:44:57,160
and to Microsoft because they drive real adoption

1184
00:44:57,160 --> 00:44:58,040
and prevent churn.

1185
00:44:58,040 --> 00:44:59,760
This is the only sustainable way

1186
00:44:59,760 --> 00:45:02,040
to run a modern architectural practice.

1187
00:45:02,040 --> 00:45:04,920
This choice is not being forced on you by a single event

1188
00:45:04,920 --> 00:45:07,160
and you can certainly continue operating exactly

1189
00:45:07,160 --> 00:45:08,000
as you have been.

1190
00:45:08,000 --> 00:45:09,360
You can keep leading with features

1191
00:45:09,360 --> 00:45:11,480
and measuring your success by deal velocity

1192
00:45:11,480 --> 00:45:13,120
or utilization rates if you choose.

1193
00:45:13,120 --> 00:45:14,200
No one is going to stop you

1194
00:45:14,200 --> 00:45:16,080
but the economic gravity of the market

1195
00:45:16,080 --> 00:45:17,760
will continue to compress your margins

1196
00:45:17,760 --> 00:45:19,360
and increase the pressure on your staff.

1197
00:45:19,360 --> 00:45:20,960
That is not a criticism of your work.

1198
00:45:20,960 --> 00:45:22,920
It is a structural fact of the industry.

1199
00:45:22,920 --> 00:45:24,920
The real choice is about capability

1200
00:45:24,920 --> 00:45:27,440
and whether you have the discipline to make this shift,

1201
00:45:27,440 --> 00:45:30,360
you have to ask if you are willing to build economic telemetry

1202
00:45:30,360 --> 00:45:31,760
and develop the skills required

1203
00:45:31,760 --> 00:45:33,400
to function as an architectural steward.

1204
00:45:33,400 --> 00:45:35,200
It takes a specific kind of patience

1205
00:45:35,200 --> 00:45:37,920
to build long term retainer relationships

1206
00:45:37,920 --> 00:45:40,360
instead of constantly chasing the next big project.

1207
00:45:40,360 --> 00:45:41,840
These are not small questions

1208
00:45:41,840 --> 00:45:43,840
and answering them requires rebuilding

1209
00:45:43,840 --> 00:45:46,760
how you sell, how you staff, and how you define success.

1210
00:45:46,760 --> 00:45:49,600
This decision also requires a significant amount of courage.

1211
00:45:49,600 --> 00:45:51,880
It is always easier to keep doing what has worked in the past

1212
00:45:51,880 --> 00:45:54,960
than it is to fundamentally reimagine your entire business model.

1213
00:45:54,960 --> 00:45:56,840
You have to be willing to look your team in the eye

1214
00:45:56,840 --> 00:45:58,760
and admit that the old way of operating

1215
00:45:58,760 --> 00:46:00,560
is no longer sufficient for the future.

1216
00:46:00,560 --> 00:46:02,320
Making a structural shift is difficult

1217
00:46:02,320 --> 00:46:05,120
but the alternative is watching your competitiveness

1218
00:46:05,120 --> 00:46:07,200
slowly decline as your margins erode.

1219
00:46:07,200 --> 00:46:09,840
Timing is the final factor in this equation.

1220
00:46:09,840 --> 00:46:12,840
The window to make this shift intentionally is open right now

1221
00:46:12,840 --> 00:46:15,280
and partners who recognize this structural change early

1222
00:46:15,280 --> 00:46:17,520
will position themselves far ahead of the market.

1223
00:46:17,520 --> 00:46:18,800
They will build these capabilities

1224
00:46:18,800 --> 00:46:20,840
before they become a matter of survival

1225
00:46:20,840 --> 00:46:22,640
and establish themselves as stewards

1226
00:46:22,640 --> 00:46:24,640
before their customers look elsewhere.

1227
00:46:24,640 --> 00:46:26,080
They are capturing the value pool

1228
00:46:26,080 --> 00:46:28,280
before it becomes completely commoditized.

1229
00:46:28,280 --> 00:46:30,040
Partners who choose to delay this decision

1230
00:46:30,040 --> 00:46:32,040
will eventually be forced to make it later

1231
00:46:32,040 --> 00:46:34,360
but they will be doing so from a position of weakness.

1232
00:46:34,360 --> 00:46:36,200
They will be reacting to a margin crisis

1233
00:46:36,200 --> 00:46:38,200
instead of responding to a market opportunity

1234
00:46:38,200 --> 00:46:39,880
which is a much harder way to operate.

1235
00:46:39,880 --> 00:46:42,640
The window is open today but it will not stay open forever.

1236
00:46:42,640 --> 00:46:43,920
Within the next 18 months,

1237
00:46:43,920 --> 00:46:46,840
the structural division in the partner channel will be undeniable.

1238
00:46:46,840 --> 00:46:49,200
Some will have repositioned and will be thriving

1239
00:46:49,200 --> 00:46:51,320
while others will still be fighting against the market

1240
00:46:51,320 --> 00:46:53,280
instead of accepting its new reality.

1241
00:46:53,280 --> 00:46:57,360
The economics of this industry will eventually make that choice irreversible.

1242
00:46:57,360 --> 00:46:58,600
The final statement.

1243
00:46:58,600 --> 00:47:00,800
Let me bring this to a close with absolute clarity.

1244
00:47:00,800 --> 00:47:03,200
The thesis that opened this episode was simple.

1245
00:47:03,200 --> 00:47:05,360
Technical excellence is now table stakes

1246
00:47:05,360 --> 00:47:08,960
while economic stewardship is the only real differentiation.

1247
00:47:08,960 --> 00:47:12,080
Everything we have discussed serves as evidence for that reality.

1248
00:47:12,080 --> 00:47:14,120
We have looked at the commoditization curve,

1249
00:47:14,120 --> 00:47:16,800
the three dying models and the structural reality of the market.

1250
00:47:16,800 --> 00:47:19,560
We have defined the mandate and the competitive advantage.

1251
00:47:19,560 --> 00:47:20,720
The evidence is overwhelming

1252
00:47:20,720 --> 00:47:22,920
because these structural shifts are irreversible.

1253
00:47:22,920 --> 00:47:25,040
A massive value migration is happening right now

1254
00:47:25,040 --> 00:47:26,800
and the partners who understand this shift

1255
00:47:26,800 --> 00:47:28,400
will eventually own their market.

1256
00:47:28,400 --> 00:47:31,840
The partners who refuse to see it will simply be priced accordingly.

1257
00:47:31,840 --> 00:47:34,720
The future of Microsoft ISPs is no longer a technical challenge.

1258
00:47:34,720 --> 00:47:37,680
It is architectural, it is financial, and it is operational.

1259
00:47:37,680 --> 00:47:39,240
Technical competence is still required

1260
00:47:39,240 --> 00:47:41,400
because you have to understand how the platform behaves.

1261
00:47:41,400 --> 00:47:43,360
You still need to know how identity functions

1262
00:47:43,360 --> 00:47:46,640
and how to grasp the mechanics of Microsoft 365 at scale.

1263
00:47:46,640 --> 00:47:49,400
But being good at those things is no longer a way to stand out.

1264
00:47:49,400 --> 00:47:51,240
It is the bare minimum expectation.

1265
00:47:51,240 --> 00:47:53,200
Architecturally, you must design governance

1266
00:47:53,200 --> 00:47:54,760
and operating models that can scale

1267
00:47:54,760 --> 00:47:56,480
without constant human intervention.

1268
00:47:56,480 --> 00:47:58,040
You need to anticipate policy drift

1269
00:47:58,040 --> 00:47:59,640
and prevent the inevitable entropy

1270
00:47:59,640 --> 00:48:01,240
that destroys systems over time.

1271
00:48:01,240 --> 00:48:02,920
Your job is to build the guardrails

1272
00:48:02,920 --> 00:48:05,160
that allow an organization to run at scale

1273
00:48:05,160 --> 00:48:07,880
without falling into a cycle of constant firefighting.

1274
00:48:07,880 --> 00:48:09,160
From a financial perspective,

1275
00:48:09,160 --> 00:48:11,040
you have to connect every dollar of spending

1276
00:48:11,040 --> 00:48:12,320
to a specific outcome.

1277
00:48:12,320 --> 00:48:14,040
You must be able to answer the one question

1278
00:48:14,040 --> 00:48:16,640
that keeps your customers CFO awake at night.

1279
00:48:16,640 --> 00:48:18,520
Are we actually getting what we paid for?

1280
00:48:18,520 --> 00:48:20,880
If you cannot answer that with data and architectural rigor,

1281
00:48:20,880 --> 00:48:22,200
you are just another vendor.

1282
00:48:22,200 --> 00:48:23,720
Operationally, you are required

1283
00:48:23,720 --> 00:48:26,520
to run continuous cycles of optimization and improvement.

1284
00:48:26,520 --> 00:48:28,320
This does not mean annual strategy reviews

1285
00:48:28,320 --> 00:48:30,400
or quarterly check-ins that lead nowhere.

1286
00:48:30,400 --> 00:48:31,760
It means the work is continuous.

1287
00:48:31,760 --> 00:48:33,000
You are running a living system,

1288
00:48:33,000 --> 00:48:34,920
not just implementing a one-time project.

1289
00:48:34,920 --> 00:48:36,480
This is not a request from Microsoft

1290
00:48:36,480 --> 00:48:39,160
and it is certainly not a marketing message they are pushing.

1291
00:48:39,160 --> 00:48:41,000
This is a demand from the market itself.

1292
00:48:41,000 --> 00:48:43,720
Your customers are already expecting this level of depth

1293
00:48:43,720 --> 00:48:45,680
and the underlying economics of your business

1294
00:48:45,680 --> 00:48:47,680
will eventually force you to provide it.

1295
00:48:47,680 --> 00:48:49,920
The only real question left is one of timing.

1296
00:48:49,920 --> 00:48:51,520
Will you make this shift intentionally

1297
00:48:51,520 --> 00:48:54,560
using strategy and discipline to define your positioning

1298
00:48:54,560 --> 00:48:57,400
or will you wait until you are forced into it, reactively,

1299
00:48:57,400 --> 00:48:58,800
operating at a disadvantage

1300
00:48:58,800 --> 00:49:00,880
because the market pressures became undeniable?

1301
00:49:00,880 --> 00:49:03,000
The partners who move now will position themselves

1302
00:49:03,000 --> 00:49:04,760
as leaders in a crowded field.

1303
00:49:04,760 --> 00:49:06,480
The ones who wait will be seen as followers

1304
00:49:06,480 --> 00:49:08,480
and in a market where technical skill is becoming

1305
00:49:08,480 --> 00:49:10,800
a commodity, followers have zero leverage.

1306
00:49:10,800 --> 00:49:12,160
So here is the final question.

1307
00:49:12,160 --> 00:49:14,680
This is not a question for Microsoft or for the market

1308
00:49:14,680 --> 00:49:15,520
but for you.

1309
00:49:15,520 --> 00:49:18,160
Do you intend to evolve or do you intend to be priced accordingly?

1310
00:49:18,160 --> 00:49:19,600
The market is making that choice for you

1311
00:49:19,600 --> 00:49:21,200
whether you acknowledge it or not.

1312
00:49:21,200 --> 00:49:23,680
The only variable that remains under your control

1313
00:49:23,680 --> 00:49:25,800
is whether you make this choice consciously

1314
00:49:25,800 --> 00:49:27,120
or let the system make it for you.

1315
00:49:27,120 --> 00:49:28,320
That choice starts now.