Partners Reply to New Microsoft Policies

July 23, 2008

For the past few days, Onsite Computer has received several email comments from Microsoft Partners regarding their changing role with Microsoft.  Following a request for anonymity, a summary of those comments follows.

From several email messages, one may conclude some partners are less than happy with the proposed changes.  Microsoft is offering a suite of hosted services in response to hosted app offerings from Google and others.  Microsoft plans to compensate partners with commissions of 12% per seat during the first year and 6% per month for each subscription to their hosted services suite which is aggressively priced at $15/month/seat.  Once a customer subscribes to the offering, Microsoft handles the relationship with the customer. 

Last winter, Microsoft planned to offer their hosted services to customers with > 5000 seats only, but changed that policy to include anyone with > 5 seats.  This policy change places Microsoft in direct competition with partners offering hosted apps to small businesses.  I received a few messages from  partners offering hosted apps who feel betrayed and are not happy with relinquishing parts of their client relationships or their market share to Microsoft. 

Microsoft insists partners will still provide consulting and support; however some partners believe Microsoft is faced with another conflict of interest and could also change that policy.  Partners voiced concerns of Microsoft marketing Microsoft consulting and support services to hosted app customers.  Every email voiced dissatisfaction with Microsoft’s policy and expressed concern with the proposed new role of partners. 

Microsoft also failed to inspire confidence among partners with the inception of the Windows Vista Small Business Assurance Program where Microsoft provides free telephone support to Vista users.  Some partners emailed complaints of lost business to the free service.

Microsoft has a unique business model utilizing their partner network as their sales force.  Some allege partners are responsible for >95% of Microsoft sales.  The overwhelming message in my communications with partners is dissatisfaction with the changes: the paltry commission structure for hosted apps and the free telephone support for Vista customers.  Stay tuned as the many facets of the Microsoft drama continue to unfold.

If you’re searching for New Orleans computer service or repair of your Microsoft based system or network, then call the Microsoft specialists at 504-469-6991. Onsite Computer Services, Inc. in New Orleans

You may also be interested in Onsite Computer’s Blog.

This New Orleans On-Site Computer Service post was provided by Eli Lucas. Eli can be reached at eli@onsitenola.com. Onsite Computer serves the Microsoft computing needs of small businesses throughout the Greater New Orleans area including Uptown, Lakeview, Broadmoor, Mid-City, Metairie, Jefferson, Kenner, Westbank, French Quarter, and the Warehouse District. Please visit our website for New Orleans Computer Service.

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One Response to “Partners Reply to New Microsoft Policies”

  1. techwoo Says:

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