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2 December 2020: DXC Technology is partnering with Microsoft to create modern workplace experience. This effort is aimed at addressing the demand by enterprises to improve workplace agility, which has come into sharp relief during the pandemic.

Why it’s Important

This announcement clearly shows Microsoft’s strategy for securing not just segments of the enterprise architecture of the future but the lion’s share. 

Enterprise companies are driving the business transformation to enhance collaboration, increase mobility, and improve customer engagements. This announcement comes as competition such as Salesforce heats up through several acquisitions, and Microsoft’s long-time rival, Oracle, makes inroads into new models of SaaS.

Who’s Impacted

  • CIO / CTO
  • Enterprise software architecture team

What’s Next?

Microsoft, like all vendors, has a strategy to extract ever more revenue from its clients.  However, Microsoft's unique position in the market gives it huge power. Understanding how Microsoft will evolve its services and licensing models is essential for keeping budgets in control.

As explored in this week’s Salesforce Slack announcement, IBRS sees that one option for the future digital workplace architecture is based on five platforms.

  1. A platform consisting of central systems of record (e.g., CRM, ERP, etc.) in the Cloud or Cloud-like environments
  2. An integration platform that surrounds the mentioned platforms 
  3. A one (or likely two) low-code platform(s) 
  4. A platform that provides the needed collaboration tools  
  5. A federated information management platform.

Indeed, Salesforce is buying the platforms it needs and integrating them then, leveraging its strength in selling it to both technical and non-technical executives. On the other hand, Microsoft is starting from a position of technical strength and deep connection with the systems integrators. 

This is evident with the DXC agreement, which is a classic strategy. Leveraging larger SIs as a strategy to deliver a future digital workplace architecture, with Microsoft 365 and Teams (collaboration), Dynamics 365 (core systems), Power Platform (low code and automation), and Power BI (business intelligence).  

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