The Future of Microsoft IT Services: What Founders Need to Know About M&A

How Strategic Acquisitions Are Shaping the Future of the Microsoft Partner Ecosystem

Global cloud spending is forecast to exceed US$1.3 trillion by 2028 (IDC). Microsoft’s ecosystem, anchored by Azure’s ~20% global market share (Venture Capitalist), is now one of the most powerful growth engines in enterprise technology. For founders of Microsoft services businesses, this momentum is not abstract. It is reshaping valuations, driving strategic M&A, and putting Azure, Dynamics 365, Power Platform, and AI-enabled services at the center of buyer focus worldwide.

Why Microsoft IT Services Are Driving M&A

The acceleration from on-premise to cloud-native and AI-driven solutions is creating both urgency and opportunity. Acquirers are prioritizing partners who can deliver end-to-end solutions across the Microsoft stack.

Where Buyers Are Focusing 

• Azure (Cloud Infrastructure & Data Modernization) The single most attractive pillar for acquirers. Migration, modernization, and AI/ML workload enablement are commanding premium valuations, particularly when tied to regulated industries or hybrid multi-cloud deployments.

  
  

• Dynamics 365 (ERP & CRM) A priority for buyers seeking industry-specific solutions in sectors such as healthcare, financial services, and manufacturing. Firms with packaged IP or strong implementation track records are especially compelling.

• Power Platform (Low-Code / Automation) Low-code adoption is accelerating. Buyers are targeting partners with automation and RPA capabilities, enabling enterprises to streamline workflows at scale.

  
  

• M365 & Teams (Digital Workplace) A mature but still critical layer. Sticky managed services revenues tied to integration, migration, and change management remain attractive to consolidators.

  
  

• Copilot & AI Enablement The newest and fastest-growing segment. Partners embedding Microsoft Copilot and generative AI into enterprise workflows are already seeing outsized demand.

  
  

• Security & Compliance (Sentinel, Defender, Entra) With rising cyber and regulatory pressure, Microsoft-native security expertise is in sharp demand, particularly in APAC’s highly regulated industries. 

  
  

Why This Matters for Founders

Across APAC and globally, valuation premiums are flowing toward firms with:

• Recurring managed services revenues (cloud subscriptions, Azure/M365 support)

• Deep vertical expertise (healthcare, finance, manufacturing)

• Geographic presence in high-growth APAC markets

• Scarce talent pools in AI, security, and data engineering

  
  

Put simply, buyers are not just acquiring revenue. They are acquiring capabilities and positioning for the next wave of enterprise demand.

Notable M&A Deals in Microsoft IT Services

1. Avanade acquires Total eBiz Solutions (2025, Singapore) 

• TruWater acted as financial advisor to TeBS on its agreement to be acquired by Avanade, the world’s largest dedicated Microsoft partner. The transaction highlights the strong global appetite for founder-led technology services businesses in Asia Pacific and demonstrates how the right strategic partner can deliver both scale and impact.

  
  

2. EY Digital Solutions acquires Kreatif (2025, Indonesia)

• Strengthens Microsoft Dynamics 365 ERP and CRM delivery across Southeast Asia, supporting EY’s push into industry-specific digital transformation.

  
  

3. Synechron acquires Chamonix (2024, Australia)

• Brings in deep Microsoft and cloud transformation expertise, boosting Synechron’s regional delivery capabilities and broadening its innovation footprint across Asia Pacific.

What’s Next for Microsoft IT Services M&A?

Looking ahead, heightened activity is expected in:

• AI & Copilot Enablement. Embedding generative AI into enterprise workflows.

• Industry-Specific IP. Packaged Dynamics 365 and Power Platform vertical solutions.

• Cybersecurity & Compliance. Risk and regulatory alignment for APAC clients.

• Regional Specialists. Consolidators targeting Southeast Asia, Japan, and India.

  
  

With IDC forecasting Asia-Pacific as the fastest-growing cloud region globally, cross-border and regional consolidation will remain an M&A priority.

Founder Takeaway

These transactions signal a clear trend: founder-led Microsoft services firms in Asia Pacific are in the spotlight. Whether you specialize in cloud migration, ERP and CRM, low-code automation, or AI enablement, global buyers are actively competing to secure your capabilities, talent, and regional presence.

At TruWater Advisory, we have guided entrepreneurs such as Total eBiz Solutions through milestone transactions with strategic buyers like Avanade. As consolidation accelerates, now is the right time to evaluate your options, whether through growth financing, strategic partnerships, or preparing for an exit.

🔎 Interested in M&A trends in Microsoft IT services? TruWater Advisory partners with founders to evaluate growth financing, partnerships, or preparing for a transaction.