Microsoft last week revealed a price hike in Microsoft Certifications that'll go into effect throughout many parts of the world starting in July.

The price hikes will affect the following certifications: Microsoft Certified Technology Specialist (MCTS), Microsoft Certified IT Professional (MCITP), Microsoft Certified Professional Developer (MCPD), Microsoft Certified Desktop Support Technician (MCDST), Microsoft Certified Systems Administrator (MCSA), Microsoft Certified Systems Engineer (MCSE), Microsoft Certified Application Developer (MCAD), Microsoft Certified Solution Developer (MCSD), Microsoft Certified Database Administrator (MCDBA).

Microsoft said it doesn't expect to increase the price of Microsoft Certified Master (MCM), Microsoft Certified Architect (MCA), Microsoft Technology Associate (MTA), and Microsoft Office Specialist (MOS) Certification exams.

Microsoft isn't raising the price of exams uniformly around the world: The retail price for Microsoft Certification exams in the U.S. and Canada will rise from $125 to $150, but it'll remain unchanged in counties like Ireland, Spain and Greece, whose economies are still shaky.

Microsoft says it'll use the price hike to Improve the Microsoft Certification program with new certifications and question types, as well as frequent exam updates and better exam security.

The move came as a surprise to partners, and those who've been adjusting their businesses to meet the new terms of Microsoft Partner Network (MPN) said the timing is unfortunate. However, Microsoft plans to offer partners "substantial savings" on exam fees for Microsoft Certifications required to attain MPN competencies. Details on these offers are on the agenda for this year's Worldwide Partner Conference (WPC), to be held from July 10-14 in Los Angeles.

MPN adds a great deal of weight to the technical skills partners carry, and many have had to make difficult choices as part of their migration to MPN. In MPN, the old Gold and Silver rankings are now being used as indicators of a partner's skill level within 29 distinct MPN technology competencies.

To obtain Gold, partners must hire or contract with four Microsoft Certified Professionals (MCPs), and the requirement for Silver is two MCPs. This is in addition to the business model changes Microsoft is pressing partners to make as part of the software giant's march in cloud computing.

In light of all these changes, it's understandable that some partners would be irked by the addition of an additional cost burden.

"Not only are they eating administrative costs to realign ourselves with Microsoft, we’re coming off a tough few years of lackluster IT spending and dealing with cloud solutions that are trying to capture a significant amount of value from the channel ecosystem," said Travis Fisher, executive vice president at Inacom Information Systems, a Salisbury, Md.-based solution provider. "I can’t imagine a worse time for increased certification costs to take effect than right now."

Next: Certifications Are Just Part Of Microsoft Partners' Costs

Microsoft, through its testing partner Prometric, offers a 30 percent discount to partners that purchase an 8-pack of exam vouchers, which includes one free "re-take" for those who don't pass the first time. There are seven exams required for the MCSE certification, which adds up to $1,050 without the discount.

But as Fisher notes, exams costs are only part of the equation when it comes to obtaining a Microsoft certification. When everything is taken into account, he estimates that Inacom invests around $10,000 per person for certifications every three to five years.

"Let’s be honest: The real costs of obtaining any certification come in the form of boot camps, which cost around $3,500 per week, payroll expenses, and lost productivity," Fisher said.

It's unlikely that higher certification costs are going to dissuade Microsoft partners that have begun their move to MPN, particularly because like MPN itself, the exam price hike will likely provide partners better visibility and differentiation within the Microsoft channel.

"This will definitely raise costs in the short-term, but fewer partners will achieve and maintain these certs, allowing them to differentiate themselves as experts in a way that other partners can’t," said Rick Oppedisano, executive director of partner and channel Sales at Azaleos, a Seattle-based Microsoft solution provider.

Dave Sobel, CEO of Evolve Technologies, a Fairfax, Va.-based Microsoft partner, was surprised by the price hike, but says it won't affect his company's MPN plans.

"It's unfortunate that it's coming in the midst of their move over to MPN, and it matters because we're trying to get a bunch of people trained," he said. "But Microsoft has long been quite generous in giving training incentives to partners, and this isn't an unreasonable increase."

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Key takeaways

• Microsoft finally confirmed that they were extending the partnership with OpenAI, the maker of the revolutionary ChatGPT tool. Microsoft Azure will also continue as the exclusive cloud provider for the tool since OpenAI uses Azure to train all of its models.
• The tech giant didn’t provide a financial figure, but it’s rumored that the investment will be $10 billion as Microsoft looks to accelerate the breakthroughs in AI to benefit the world, according to a release.
• Artificial intelligence has the potential to change the landscape when it comes to how tech giants compete with each other. Some experts believe there will be a competitive AI landscape as companies seek ways to optimize business operations with machine learning.

Microsoft has finally commented on the rumblings about the $10 billion investment into the OpenAI, maker of ChatGPT, after rumors have been swirling for weeks about this colossal financial deal. While Microsoft didn’t confirm the actual financial figure in the press release on Monday, they did announce the partnership between the two companies would be extended.

This latest investment is the third phase of the financial commitment from Microsoft. Previous investments were made in 2019 and 2021 into the AI startup.

We’re going to look at how artificial intelligence will change how Microsoft competes with Google, Apple and other tech giants—and how Q.ai can help you keep abreast of the changes.

Microsoft extends its partnership with ChatGPT

Microsoft finally confirmed a new multi-year investment in OpenAI, the company behind ChatGPT, in a press release on January 23. When they last wrote about Microsoft’s investment in ChatGPT, it was reported by Semafor that the tech giant was looking to invest an additional $10 billion into the startup. The official release doesn’t confirm or deny the rumored dollar figure, as they only commented on continuing the partnership.

Microsoft noted how they were committed to turning Azure into an AI supercomputer for the entire world. Microsoft Azure is the exclusive cloud provider for every tool under the OpenAI banner.

Microsoft CEO Satya Nadella made the following remark in the release:

“In this next phase of their partnership, developers and organizations across industries will have access to the best AI infrastructure, models and toolchain with Azure to build and run their applications.”

Just as a quick reminder, ChatGPT is the chatbot released late last year by OpenAI, a company that Elon Musk and Sam Altman originally founded. This revolutionary tool reported one million users at the beginning of December after being out for about a week. The program uses OpenAI’s GPT-3.5 language mode, an upgraded model version released in 2020.

What does this partnership mean for ChatGPT?

Microsoft Azure will continue to be the exclusive cloud provider for OpenAI, and it will power the workloads of research, products and API services. This next round of funding was initially rumored to include Microsoft and other investors, bringing the total valuation of the AI startup all the way to $29 billion.

It’s worth mentioning that Microsoft has already invested in OpenAI at earlier stages. There was an original investment of $1 billion into the San Francisco-based startup back in 2019. Since that time, Microsoft silently invested another $2 billion into the company, according to industry sources.

How important is this AI investment for Microsoft?

Microsoft launched Microsoft Designer, a graphic design app that uses AI-based technology to create art and social media images from scratch. They also announced a partnership with Meta to provide the workplace of the future.

However, it’s worth bringing up that this unique partnership with ChatGPT comes just a week after Microsoft announced that they would eliminate 10,000 positions globally. While the company has stated that the cuts would allow them to priotiize focus on the field of AI, it’s clear that Microsoft is taking a huge risk on this field.

What’s the potential of ChatGPT?

Even though the new AI-powered chatbot has only been around for a few months, it has already started to make major waves. Here’s a look at some of the potential of ChatGPT.

Generative AI is changing the landscape

According to a latest report in the New York Times, Microsoft is relying on its strong financial position and the power of the AI tools created by openAI to be at the forefront of generative artificial intelligence. This refers to technology that can generate text, images, social media posts and other media from short text reports.

In shocking news, it was revealed that ChatGPT passed an MBA exam given by a Wharton professor. Teachers have been reporting that students are using the AI-powered tool to write essays. Many companies have started using the tool to create content as the list of uses teeters between fun and functional.

The paid version of ChatGPT is coming

OpenAI recently revealed what many were expecting, that they will monetize the tool and offer a professional version. The premium version would be called ChatGPT Professional, and it would come with no unavailability time, faster responses and unlimited messages. The pricing hasn’t been announced yet, as the waiting list is more of a survey about the possible price points. However, as many businesses and users start to rely on this tool, it’s clear that monetization could be massively successful.

ChatGPT could be the “iPhone moment” for AI

While the ChatGPT tool hasn’t directly impacted Apple yet, many experts consider the release of this product the “iPhone moment” for AI in the sense that the capabilities of machine learning are coming to the forefront of the public consciousness. Ever since the iPhone came out in 2007, it has changed how fast and productive a smartphone can be, and ChatGPT could do the same for artificial intelligence.

AI will change how Microsoft competes with Google and other tech giants

Why is Microsoft allocating so much capital toward this AI startup? Here’s how AI will change how Microsoft competes with other tech giants.

The AI competitive landscape is heating up

Notable tech giants like Alphabet and Amazon have already been investing billions of dollars into the field of AI-related research. Alphabet recently revealed that they were laying off 12,000 employees globally and shifting the company’s focus towards AI. Google’s management even declared a “code red” as there are concerns that the chatbot could replace search engines. With digital ads bringing in more than 80% of Alphabet’s revenue last year, it’s not likely that they’ll want to replace the search engine with a chatbot anytime soon.

Microsoft is looking to Improve its search engine

As they all have witnessed, Google took over the search engine field to the point that the brand name is synonymous with searching for something online. Microsoft has its own search engine, but Bing isn’t as popular as Google by any stretch.

Reports have indicated that Microsoft hopes to launch a Bing feature that would incorporate the ChatGPT technology into its search engines to provide better user results. If Microsoft can finally gain some movement in the search engine space, this would provide Google some much-needed competition and it could change how the average person surfs the web.

Major companies are still concerned about the consequences

As impressive as this AI-powered technology is, they can’t ignore the possible consequences of these tools. Microsoft, Meta, Google, and other tech firms are concerned about releasing such products due to the potential damage that could be caused to the respected brands.

According to reports, Google is mainly thinking about safety, handling misinformation, and accuracy when it comes to releasing a competing chatbot. As revolutionary as the new chatbot is, the reality is that the product is far from perfect, and some issues need to be cleared up before such an innovation is ready for the broader market.

How should you be investing?

The headlines are rather confusing as in one article, you read about how Microsoft is laying off thousands of employees worldwide, and then in the next story, you see that the tech giant is investing billions of dollars into a startup that hasn’t made any money yet. This makes it challenging to figure out how to invest your money, especially considering everything else that’s happening in the economy.

The good news is that Q.ai takes the guesswork out of investing. You don’t have to look any further to see the power of AI in action, as Q.ai uses AI to offer investment options for those who don’t want to be tracking the stock market daily. They urge you to check out their Emerging Tech Kit if you’re a proponent of innovative technology.

The bottom line

With Microsoft finally confirming the latest extension of its partnership with OpenAI, it looks like further updates to this tool can be expected in the near future. It will be exciting to see how Microsoft utilizes this technology in its suite of products and if the company can monetize this new tool.

Download Q.ai today for access to AI-powered investment strategies.

Just before Microsoft stopped taking new or renewed subscriptions to its TechNet service this week, the company quietly announced yet another change that could impact many IT pros. In an email sent to many Microsoft Certification community members, the company announced it will no longer offer Masters level certification exams as of Oct. 1.

The same email, as posted on the TechNet blog of Microsoft Senior Consultant Neil Johnson, added that the company will no longer offer Masters and Architect training anymore. People who have already reached the Masters level of certification from Microsoft will still be able to claim that credential and will not need to be re-certified.

The Microsoft Connect message board has been one of the places where community members have written and posted their displeasure on this move. However, Tim Sneath, Microsoft's senior director of Microsoft Learning, did address those concerns in his own board post. In short, it would seem that the Masters certification program has not been as successful as Microsoft would have liked. Sneath said:

The truth is, for as successful as the program is for those who are in it, it reaches only a tiny proportion of the overall community. Only a few hundred people have attained the certification in the last few years, far fewer than they would have hoped.

However, Sneath indicated that Microsoft is still interested in creating a new high level certification program for IT pros and that the company may just be "taking a pause" before launching a new and improved exam program.

Source: Neil Johnson via ZDNet.com | Image via Microsoft

Stephen Elop, president of the Microsoft Business Division, runs a $20 billion operation related to information workers and business applications, and has been on the forefront of Microsoft's efforts to articulate the changes partners will need to make to follow Microsoft into cloud services.

Elop sat down with ChannelWeb at Microsoft's Professional Developer Conference in Los Angeles to discuss the of future Microsoft's Software Plus Services strategy, how the current economic situation is shaping its conversations with channel partners, and how end customers will benefit from the coming wave of Microsoft services.

How do you see the economic situation impacting Microsoft partners in the coming year?

ELOP: No one can predict what's going to happen in the economy. But in their last quarterly results, what they signaled for the year ahead is that there's ambiguity, and it's hard to predict things like that. What that means is some degree of uncertainty for all their partners and the channel at large.

What we're deliberately trying to do, therefore, is to communicate with channel partners -- and the field teams working with them -- that this is a time when you're out there trying to help the ultimate customers, save money, derive greater value from what they're doing, and focus on the areas of greatest return. Hopefully, that will help their customers deal with their business challenges in the short term.

And also this is time when you build share and great relationships with customers that will last for a long time. Customers are wondering, should I be dealing with this company or that company in the ecosystem around Microsoft.

Microsoft is going to make it through whatever financial challenges come to pass, so we're seeing customers and partners having people trust them because they know they're going to be around.

In the year ahead, we're heavily focused -- and already messaging -- about value, about helping customers save money, and about helping them deploy software they may have already purchased, but may not know how to gain value from.

During the opening keynote at PDC, David Thompson (corporate vice president of Microsoft Online) said that in the future, all of Microsoft's enterprise applications will be available as services. Should partners be surprised by that statement?

ELOP: No, it's really just a continuation of what we're doing. For example, if you think about the major applications in the Business Division, like Exchange, SharePoint, Office Communications Server, those are all either in the cloud or coming into the cloud shortly.

Everything will end up being in the cloud. It's hard for us to imagine any of their applications that don't have a strong client, server and cloud story to tell across the PC, the mobile phone, and the browser. I'm responsible for Word, Powerpoint, and a whole ton of other applications, and that mandate applies to these, too. Even for applications that people wondered if they would ever see in the cloud, that's what we're doing. We're definitely changing it up in a big way.

Everyone gets excited because one of their competitors adds bolding or underlining to a cloud based application, but we're running entire corporate email systems, collaboration systems, communications systems, at scale for large organizations in the cloud -- that's already happening.

What Microsoft technologies are going to have the biggest impact on partners in 2009?

ELOP: Companies are realizing the need to focus their limited IT resources on issues on which their businesses are based. And they're looking to Microsoft partners, or Microsoft, to help in offloading certain tasks, to free them up for more strategic tasks. So, in Software Plus Services, they can take SharePoint and Exchange and deliver them for you as a service, which is a powerful message to companies of all sizes.

Some partners have wondered: If Microsoft is running Exchange in the cloud, for example, is there still a role for us? At WPC, I was there to deliver a very powerful message: Microsoft has been deliberately dependent on the partner channel. It's a competitive asset, and it's how they go to market.

So, regardless of whether it's software in the cloud, ultimately run by us, or however it's done, they need their partner organizations involved.

Economical models may change: They may have to collect money one way, and pay partners another way, and do different things. But nonetheless, partners are a critical part of that whole strategy.

We hear people telling us: They want software in the cloud, they want to take advantage of someone else's even larger economies of scale, and they want to take advantage of the fact that you built a data center right next to a hydroelectric dam to drive the price of power down. Microsoft is one of only a handful of companies that has the scale to do that type of thing. So we're doing it, and we're trying to bring that benefit to their customers through partners.

NEXT: How will channel partners need to adjust?

How much will channel partners need to evolve to remain relevant in Software Plus Services?

ELOP: A big part of conversation is to recognize that the world is changing. It's not about Microsoft, it's not about Google, and it's not about [Chairman of the Board of Governors of the United States Federal Reserve] Ben Bernanke. It's about all those things together.

I'm running a $20 billion operation related to information workers and business applications, and I know that my economics are changing. I have to deliver services as well as software, and I have to make certain things available in the cloud as opposed to just on a desktop. Our customers are pulling us in that direction, and the world of partners must evolve also.

Partners should be aware of the fact that the world is changing, and they have to change with it. For those who develop applications, or help people develop applications in a .Net environment against a traditional Windows server, if they don't start thinking that this same paradigm is shifting into the cloud, then they will be left behind, because the world is moving forward.

The most important thing for partners to take out of all of this is that you've got to be moving, too. Things are changing: The way the money is flowing, the development work that you do, the support services, that's all going to change. There's no avoiding it, so jump in, the water's fine, is basically Microsoft's overall message.

Has partners' perception of Software Plus Services changed since WPC?

ELOP: A couple of things have happened since WPC: One is, with the passage of time, partners and Microsoft are able to work together on things and solve ambiguities, and that has helped everyone move along, and if necessary, adapt. That means changes that Microsoft may have to make in how they price and package services, and that's learning they do together. Partners are now in a phase where they understand what Microsoft is doing with Software Plus Services and are working together with us.

It's also clear that this massive economic churn has kicked in, and with that comess all sorts of dynamics for the partners in terms of how they run their businesses. They have to make decisions about what bets to place and what's most important, because on average, they probably have less options available to them today than they did even six weeks ago. Credit markets are freezing, and a lot of the partners are small businesses that rely on rotating credit and so forth.

I can ensure that a bunch of partners have experienced a credit line squeeze. They're having to make some pretty tough decisions, so what we're doing with the partner community is to make them understand the decisions we're making so that they can make aligned decisions.

What types of changes does Software Plus Services require of developers?

ELOP: The big differentiator for Microsoft with Software Plus Services is that there are less changes involved with moving to the cloud. Whether it's Visual Studio, .NET, SQL Server, all of the things you've learned, you can use the vast majority of that experience in the cloud. And you can carry on with us in terms of familiarity in how you develop applications.

Having said that, the cloud introduces new economic models, and new ways of building and deploying applications. For example, the point of scalability, where before you used to build an application, you'd have to buy a bunch of servers to run it on, and try and guess how many servers to buy. There was a lot of risk associated with that.

With Software Plus Services, we're trying to reduce the risk for developers and partners. They can build an application, if they use a certain amount of processor power in the early days, ultimately they'll only have to pay that much. And if they add new customers, they can scale with them, and they're just paying for what they use on a utility basis.

So, for their partners who are building applications and trying to take advantage of Microsoft technology to take something to the ultimate end customer, I think they are actually changing a bunch of things, just as they are for corporate developers. But they're things that can actually help them in their business, particularly given the state of the economy.

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