Microsoft is set to collaborate closely with its partner ecosystem as it enters the forward deployed engineering (FDE) trend. The company announced a $2.5 billion investment in the new ‘Microsoft Frontier Company’, aiming to embed 6,000 staff at customer sites to aid in the design and deployment of AI systems. This move follows similar initiatives by AWS, Google, OpenAI, and Anthropic, which have all taken steps to accelerate AI deployment by embedding engineers directly with clients. Microsoft describes its new unit as an advanced engineering organization focused on achieving measurable business outcomes through co-design and continuous improvement of AI systems. Analysts suggest that the rise of vendor FDE teams is due to a shortage of capacity in the channel to scale AI effectively. While firms like AWS have extensive partner ecosystems, scaling quickly through them is challenging, as many cloud partners do not attach professional services to their deals. Microsoft plans to leverage its strong partnerships with global system integrators such as Accenture, Capgemini, EY, KPMG, and PwC to extend its reach and deliver unique value to customers worldwide.
How will Microsoft collaborate with partners in the FDE trend?
