ISG Provider Lens™ Microsoft Ecosystem - Global Summary Report - April 2021
Dynamics 365 adoption is accelerating
Microsoft’s Dynamics business applications took on new importance under the leadership of Satya Nadella. Over the past several years, the company has increasingly emphasized the utility of Dynamics 365 not only for the applications’ legacy midmarket customer base, but also in large enterprise environments. Microsoft is pushing its partners to help drive growth for this line of business. ISG sees three major constituencies adopting Dynamics 365: legacy customers migrating from on-premises AX and CRM installations, new customers seeking particular a la carte capabilities (such as e-commerce or field service) and enterprises seeking to move away from other business application vendors like Salesforce and SAP. This migration is further fueled by unique capabilities in Dynamics 365, including integration with Microsoft Teams and LinkedIn.
Teams drives Office 365 and Digital workplace growth
The COVID-19 pandemic pushed enterprises to quickly adopt Microsoft Teams to improve their employees’ ability to collaborate digitally. That has driven increased use of Office 365 for those organizations that had not already adopted Microsoft’s productivity suite. ISG sees enterprises contracting with a single provider to aid both in adoption of Office 365 and implementation of digital workplace in most cases.
Adopting Office 365 requires significant organizational change management
Enterprises can transition to Office 365 with very little change in their processes, but actually deriving value from the advanced capabilities of Microsoft’s cloud-based productivity suite requires changing the way employees work. Making that shift requires colossal investment in organizational change management, and well-equipped providers will have the requisite plans and methods to ease the transition.
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