262 – Microsoft’s Partner-Led Future: Nicole Dezen on AI, FY26 Strategy & $661B SMB Opportunity

From Ultimate Partner LIVE in Redmond, WA

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Welcome back to the Ultimate Partner® Podcast.

This episode is something special.

It was originally recorded as the kickoff conversation for our May Ultimate Partner LIVE event—a powerful session that featured none other than Nicole Dezen, Microsoft’s Chief Partner Officer, and a true champion of the ecosystem.

Now, we’re bringing it to you, our amazing Ultimate Partner Podcast community.

In this candid and insightful conversation, Nicole shares Microsoft’s unwavering commitment to its 500,000+ strong partner ecosystem—especially poignant as the company celebrates its 50th anniversary.

We explore how partners are not just part of the Microsoft story—they are the story.
From driving innovation to fueling growth in the era of AI, this dialogue makes clear that partners are at the heart of Microsoft’s transformation agenda.

You’ll hear about the company’s FY26 strategic priorities—known as MCAPS—including renewed focus and record investment in the SMB segment, and the role of partners in shaping what’s next.

https://www.youtube.com/watch?v=3vuEsmcPvD4

Partnerships are Microsoft’s Core: Microsoft’s foundational commitment to its partner ecosystem is deeply ingrained in its 50-year history and remains central to its future strategy.

AI is a Partner-Led Opportunity: Partners are crucial to driving AI transformation, with Microsoft actively supporting and incentivizing those who leverage AI for customer solutions and business growth.

Substantial Profitability for Partners: The Microsoft ecosystem offers significant financial returns, with partners earning multiple dollars for every dollar of Microsoft revenue, boosted further by generative AI.

Strategic Alignment with Microsoft Priorities: Partners can maximize their success by understanding and aligning with Microsoft’s five MCAPS priorities, which guide both Microsoft’s internal sales and partner incentives.

Targeted Investments for Ecosystem Growth: Microsoft continues record investments in its partner ecosystem, with a strong focus on empowering partners, especially those serving the high-growth small and medium enterprise (SMB) segment.

“Customer Zero” Enhances Partner Credibility: Partners are encouraged to use Microsoft technologies, particularly AI tools, internally (“Customer Zero”) to build authentic experience and credibility for customer engagements.

https://youtu.be/s33fltuizEo

Transcript:

(0:00) So I wanna take this moment to welcome a friend, (0:03) an incredible leader, somebody who leads the largest, (0:09) imagine this, the largest ecosystem in our industry (0:12) is the Microsoft ecosystem, (0:14) with over 500,000 partner organizations. (0:19) Nicole Deason has done an outstanding job (0:22) of taking this organization to the next level. (0:26) In fact, we recognize, Nicole was on my podcast last year, (0:29) we were up here in Redmond, (0:30) we recorded a really great interview.

(0:32) If you haven’t had a chance, (0:33) you can find that on our YouTube channel. (0:35) You can find that incredible discussion that we’ve had. (0:38) I’ve asked her back because a lot of things (0:40) are happening at Microsoft.

(0:41) And I also wanted to recognize her. (0:43) Like see, we did this Partner Leader of the Year Award (0:46) at the end of 2024, and we recognized Nicole (0:48) for how she’s reshaped Microsoft’s landscape, (0:51) how she’s really tightened up Microsoft’s focus (0:54) and strategy, and I wanted to have her back today, (0:57) A, to recognize her up on stage (0:59) for her outstanding leadership, (1:01) but also have you hear from her (1:03) about her point of view as partners (1:06) and how Microsoft thinks about this ecosystem (1:09) and its approach to support this incredible thing (1:11) that was created over 40 years ago. (1:14) Microsoft was the first company (1:15) to really embrace partnerships, (1:18) and still is at the very forefront of it.

(1:20) And so I’m excited to have Nicole join us. (1:23) Nicole and team, but we also have a little something (1:27) we’re gonna bring out here. (1:28) So here comes Nicole.

(1:30) Nicole, so good to see you. (1:31) So good to see you. (