The Channel logo

News

By | Paul Kunert 24th September 2013 13:03

Microsoft SLASHES rewards for biz selling its kit to 100 'big fish'

8% for selling to global accounts? Not from January

Microsoft is set to slash the fees that its partners make on sales of Service Provider Licensing Agreements (SPLA) to certain large customers from January.

As revealed by El Chan a couple of weeks back, SPLA prices are heading north from the start of next year with mostly double-digit rises on Windows Server, System Centre, Dynamics and Dynamics AX (see box below).

The price rises will be more of a pain for hosting businesses, which often draft multi-year contracts with customers.

But our sources tell us that Microsoft is collating a list of 100 named global accounts and any tech channel partner selling to those customers will see their fees on the sale drop from eight per cent to two per cent from 2014.

The names on that list have yet to be finalised – they were due to be sorted on 1 July – and people in Redmond HQ are still working through the details, say our sources.

Channel firms often hand over a portion of their back-end fees to customers in the form of a discount, with as much as half the fee sometimes relinquished to win a deal.

The drop in fees means the financial lubricant is less attractive for any global customer that wants to continue buying from the channel, with one Microsoft partner warning that, in theory, non-named accounts will pay less for software.

A spokesman at Microsoft sent us a statement:

Microsoft periodically reviews and fine-tunes the components of our channel rebate program. We have adjusted our SPLA rebate structure for limited number of jointly managed customer accounts. However, for the majority of our SPLA-reseller channel our rebate structure remains unchanged.

The SPLA pricing changes as of January are as follows:

®

comment icon Read 5 comments on this article alert Send corrections

Opinion

Alexandre Mesguich

Change is order of day as tech giants shift strategy gears
Partnership

Frank Jennings

Confused? No problem, we have 5, no 6, no 7... lots of standards

Chris Mellor

VC sequence could end not with a bang, but a whimper
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Features

money trap conceptual illustration
Big boys snare the unwary with too-good-to-be-true deals
Angus Highland cow
Pet carriers not wanted for whitebox stampede
FBcoldstoragearray
Sorry OpenStack and Open Compute, we're not all Facebook
Gary Kovacs, CEO of AVG. Pic: World Economic Forum
Scammy download sites? Government snooping? Run of the mill for Gary Kovacs