Microsoft Pivots to AI Services as Asia Partners Race to Transform

By Anuj Singhal

At Canalys Forums APAC 2025 in Da Nang, Microsoft delivered a clear strategic message to its partner ecosystem: AI is now the central driver of channel growth, and partners must evolve from transactional resellers into outcome-driven solution providers. Speaking at the event, Foong Chee Ngiam, Asia Channel Partner Marketing Leader, Microsoft, said the company is “raising the bar on AI readiness” with new incentives, training programs, and co-funded engagements designed to help partners commercialize AI use cases faster. “This isn’t about selling software,” Foong said. “It’s about building repeatable, scalable solutions that solve real customer problems using AI and cloud services. Partners who operationalize AI instead of just talking about it will see accelerated pipeline velocity in 2026 and 2027.”

Microsoft is aligning its AI Cloud Partner Program to push partners toward service-led models, Copilot deployments, Azure AI integrations, and industry-specific automation. Heather Gordon, Chief Partner Officer, Asia, Microsoft, stressed the urgency of this shift, explaining that license-based relationships are no longer enough to sustain growth in a rapidly changing market. “Our commitment is to equip partners to deliver outcomes, not transactions,” she said. “We are boosting training, specialization pathways, and business development support so partners can deliver AI projects with speed and confidence. Those who build internal capability—sales, technical, and delivery—will be in the strongest position to lead across APAC.” Gordon added that structured workshops, customer assessments, and vertical solution crafting are outperforming traditional sales motions, with Microsoft seeing “significantly higher conversion rates when partners demonstrate business value, not technology features.”

Microsoft’s approach is designed to help partners expand beyond resale margins into recurring revenue opportunities such as AI managed services, automation projects, governance support, cloud modernization, and application innovation. Both executives emphasized that partners should use Microsoft funding to run proof-of-concept engagements and create industry accelerators, from AI claims automation in insurance to compliance analytics in financial services. The company is also prioritizing Copilot attach strategies, encouraging partners to pair productivity AI with Microsoft 365 and Azure deployments. At the forum, Microsoft reinforced that 2025 and 2026 will reward partners who invest in training, build cross-functional AI teams, and package solutions rather than offering one-off implementations. Partners that shift early will benefit from greater visibility in Microsoft programs, stronger incentive alignment, and access to high-demand enterprise transformation deals across Asia.