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Who Can Sell Microsoft Enterprise Agreement

Microsoft is putting unprecedented pressure on its sales teams and chain partners to improve revenue forecasts and impose term extensions. Sales commissions and commissions paid to resellers have a negative effect if the AES are not renewed within the allotted time. The growing focus on cloud-based computing represents a new shift to the way Microsoft® seeks to expand its business. While indeterminate licenses generally offer recurring sales of volume license (VL) customers, even if this is due only to payment terms that will be extended over time (mS currently has approximately $23 billion, which has been contracted contractually but not billed), products provided by an external cloud will almost always be subscribed or not. In the past, Microsoft® has relied on Large Account Resellers (LARs) to help them primarily sell indeterminate licenses to VL customers through enterprise, open or select agreements. At last year`s Worldwide Partner Conference (WPC), which took place near the unveiling of Devices and Services Reorg, MS announced that its „LARs“ would now be known as the „LSP“ or Licensing Solution Provider. As part of this amendment, MS increased the licensing requirements to become resellers and changed the incentive and compensation structure to better reward partners for attracting customers to the cloud and online services. The goal is to motivate them to sell current solution practices rather than just selling licensing agreements. These include a greater focus on cloud sales, forward extensions and true-ups, software asset management (SAM) and Office 365™ add-ons. Most enterprise software advisors try to create lasting relationships with their customers, but there`s never any harm in buying your deals on an annual basis. As of July 1, 2016, Microsoft will no longer accept new orders and software insurance renewals in markets where MPSA is available, thanks to existing Select Plus business agreements for the next anniversary of the customer`s contract.

Interest in windows 7 migrations and upgrades may accelerate after the release of SP1. This may be an opportunity to sell new EAS. However, some perspective is needed. Online services for commercial customers still account for a tiny fraction of Microsoft`s revenue. Most of its gains come from on-premises software. A reseller who did not want to be named believes, for example, that he has still not sold as many seats as the local version of Exchange`s earnings in a single year in the years that Microsoft Exchange hosted. For Microsoft channel partners, especially large account resellers (LARs), which are EA`s only sales channel outside Microsoft, it seems that the second shoe has fallen off. Already facing the loss of much of ea`s sales on the company`s 2,000 largest accounts worldwide — Microsoft will take over these accounts directly from September 2011 — partners now face a new hurdle as Microsoft introduces two online services, Windows Intune and Office 365. These services duplicate much of EA`s functionality and could affect EA`s revenue between small and medium-sized businesses. They are also billed directly by Microsoft.

There are increasingly licensing and subscription optimization challenges in Microsoft transactions, as well as new cost, flexibility and licensing/subscription opportunities you can capitalize on. As Microsoft continues to make a transformation and business demands and usage requirements are changing rapidly, customers should prepare for a more demanding purchasing and supplier management environment. Changes in today`s business climate, coupled with Microsoft`s mission to relocate businesses to the cloud, are changing the way it does business with its largest customers. Companies considering renewing their enterprise agreements