With Microsoft 365, there’s estimated to be over $85.3 million in annual managed service revenue, over $28.7 million in annual managed service gross margin, and an average managed service gross margin of 34%.
Who wouldn’t want a piece of this action?

What is the benefit for Cloud resellers?
With Microsoft 365 there is a massive menu of value-add services, both one-off and ongoing, that you can use to strengthen your relationship with your customers, including:
Consulting opportunities
As your customers trusted advisor, you can consult with them on their journey from either an on-premise solution or hybrid cloud solution including:
- Strategy and road maps:
- Software and device provisioning
- Migration and configuration
- Customization and integration
- Business process redesign
- Organizational and change management
- Training
- Managed services
Grow with new services
New opportunities to attract customers and increase revenue with security, GDPR, teamwork, and modern devices:
- Enable chat, shared files, and meetings with Microsoft Teams.
- Prevent malicious email attachments with Office 365 Advanced Threat Protection.
- Identify, monitor, and protect sensitive information with Data Loss Prevention.
- +US$11 per user per month increased gross profit.
Increase customer lifetime value
Provide ongoing monitoring, remediation, adoption, and support services:
- Manage end-to-end compliance processes with Compliance Manager.
- Enable BYOD scenarios, and protect email data with Azure Information Protection.
- Assess security readiness and remediate issues with Microsoft Secure Score.
- 36% increase in gross profit from managed services.
Differentiate your offerings
Provide advisory services and extend the Microsoft 365 platform to increase profitability and customer retention:
- Develop specialised offerings targeting industry-specific challenges.
- Create repeatable tools to simplify administration and front-end access.
- Develop value-added IP to address process automation.
- The potential to increase your gross profit from business solutions by 26%.
Managed services are among the most important revenue stream opportunities for a partner, covering a wide range of offerings from inexpensive security monitoring services, through to full-scale technology-as-a-service turnkey solutions.
How does it benefit your customer?

The Microsoft 365 modern desktop is Windows 10 and Office 365, kept up to date. Making the shift to a modern desktop helps your customer to foster a highly secure workspace, empowered by the latest productivity, teamwork and collaboration experiences. More than 50% of SMB’s have suffered a data breach, disrupting trust and damaging bottom lines. Give your customers peace of mind from external threats with built-in security and compliance tools.
Built for teamwork
The way SMB customers collaborate in the workplace is transforming. To remain competitive, they need to optimise how their teams work together. With improved collaboration, SMB customers can be more productive, reduce costs, safeguard data, and enable people to work almost anywhere.
Key teamwork benefits:
- Enterprise-class email, voice, and video.
- Connect everyone with company-wide communities.
- Share and collaborate on documents in real time.
- Includes Microsoft Teams, the new chat-based workspace.
Teamwork decision making triggers:
- Streamlining multiple teamwork solutions that don’t talk to each other.
- Shift to a multi-generational workforce.
- Expanding remote/mobile workforce.
- End of support in 2020 for Office 2010, Windows 7, Exchange 2013.
Intelligent Security
Managing security updates and patches across a variety of platforms, applications, and back-office systems is a nightmare for any IT professional. Keeping everything updated without breaking the delicate connections between different legacy systems, and also having to work out how to refresh employee’s PCs and devices… that is giving us a headache just thinking about it!
This headache could be avoided with the adoption of the Microsoft ecosystem and Microsoft 365. By getting your customers to adopt Microsoft 365 they will be able to bring everything together in a simple, integrated way. How easy would that be to manage internally, not just for a new deployment, but for ongoing updates as well?
Key Security benefits:
- Always up to date
- Self-service deployment
- Cloud-based management
- Rich telemetry from your environment
- Reduce TCO with consolidated solutions
Security decision making triggers:
- Security breach event
- Regulatory requirements (GDPR)
- Renewal or compete motion
- End of support for: Office 2010, Windows 7, Exchange 2013