Aragon’s Microsoft Power Platform SWOT Analysis
by Betsy Burton
Over the past 6-8 months, we’ve seen significant evidence of a rise in the market interest for Microsoft Power Platform from both end-users and technology & service providers (TSPs). With Microsoft’s well-known global brand and the widespread adoption of Office 365, Microsoft PowerApps, and other products, Microsoft Power Platform is in a position to elevate its place in the digital business platform (DBP) market.
In this blog, we preview Aragon Research’s analysis of the product’s strengths, weaknesses, opportunities, and threats, offering advice to end-users and TSPs (if you are curious about how to do a SWOT analysis see the full Microsoft Power Platform SWOT Analysis).
What Is Microsoft Power Platform?
Microsoft’s strategy for Microsoft Power Platform is to deliver an integrated environment that enables Microsoft Office 365 power users, Microsoft Dynamics 365 users, citizen developers, and IT developers to easily create new solutions and integrate diverse data and applications.
Microsoft is also using Power Platform services to create an ecosystem of Microsoft business apps and partner solutions that enhance Office 365 services and that are based on Azure, thus growing adoption of both Office 365 and Azure. For any PowerApps developer, the platform is an empowering offering.
Given these strategic goals, Microsoft Power Platform is positioned as both a platform and a platform of platforms. It integrates Microsoft apps and infrastructure to offer a wide set of capabilities:
- As a digital business platform, Microsoft Power Platform delivers an integrated environment that enables Office 365 power users, citizen developers, IT developers, and TSPs to easily create new solutions and integrate diverse data and applications.
- As a platform of platforms, Microsoft Power Platform is a family of products that can be used to develop business solutions, including Power BI, Power Apps, Power Automate, and Power Virtual Agents.
The SWOT Analysis
In our recently released note, Jim and I highlight a SWOT analysis on Microsoft Power Platform, breaking down the product and explaining its strengths, weaknesses, opportunities, and threats. SWOT analysis is a classic and time-tested approach to evaluating the market position and value of a product offering.
For TSPs and end-users considering Microsoft Power Platform, this analysis can provide a clear understanding of what the offering provides, and how it might fit into their technology portfolio.
For instance, we observed that Microsoft’s brand and widespread adoption of Office 365 and Azure puts it in a strong position to compete in the DBP market (see the Aragon Research Globe for Digital Business Platforms, 2020). Among other low code development platforms, the Microsoft low code platform has distinct advantages.
However, we also found that organizations must develop or acquire connectors/gateways to access any applications and data sources that are not running in Azure, including emerging and legacy systems across business and IT. We also found that it requires connectors to Azure stack on edge devices or agents. Compared to other digital business platform examples, Microsoft Power Platform faces unique challenges.
In our full research note, we go into a more detailed assessment of the specific ways Microsoft is well-positioned in the market, as well as the challenges and threats it faces.
End-user and TSP organizations should take note that Microsoft is putting a strong marketing and development effort into Microsoft Power Platform.
There are a few issues and roadblocks that we believe the company faces, particularly with respect to increasing its uses for enterprise-class solutions. However, it should be put on many organizations’ shortlist for a digital business platform.
Check out our full research note to understand how to conduct a SWOT analysis for a new product offering like Microsoft Power Platform.