Microsoft Delays Partner Revenue Monitoring

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

Microsoft will not roll out a new online tracking system for monitoring partner sales and revenue performance until October 2012, a year past its intended release date. Partners will still have to report revenues through existing manual processes.

Experiencing some technical issues, Microsoft is putting off the implementation of a new online system to actively monitor its Gold Partners sales and revenue performance. The system will go live until October 2012, but solution providers will still have to report their revenue to Microsoft manually to maintain their Gold eligibility.

The announcement came last week when Microsoft also announced slight changes in the Gold Partner revenue requirements. The company said, “Measurement of gold competency revenue has been delayed until October 2012. Partners with a gold competency must meet the revenue amount by their next membership renewal date that occurs after October 2013. Until October 2013, partners will continue with the same process that is in place today – agreeing to meet a minimum Microsoft revenue amount based on their respective geography and gold competency.”

Related articles

>> SIGN UP FOR THE CHANNELNOMICS NEWSLETTER <<

Microsoft development of the online, automated tracking system was intended to more closely align partner benefits and rewards with sales and revenue performance. Beginning in October 2012, Microsoft will require Gold partners to attain certain annual revenue thresholds to maintain their Gold status. Revenue requirements vary by product group, but typically fall between $100,000 and $200,000 per year. Failure to meet the minimum revenue requirements may result in a partner being reassigned to Silver or a lower-tier partner segment.

The delay, Microsoft says, will give partners more time to prepare for the more stringent revenue requirements. It also gives Microsoft time to perfect the system. As Jon Roskill, corporate vice president of the Microsoft Worldwide Partner Group told Redmond Channel Partner, "To ensure that we have the most accurate revenue measurement systems in place, we are delaying measuring gold competency revenue until October 2012 (as opposed to beginning in October 2011)."

Microsoft has long been at the vanguard of multifaceted metrics for measuring partner performance. In addition to sales and revenue standards, Microsoft has requirements for technical competencies, domain expertise and practices, and customer satisfaction as means for assessing and rewarding partner performance.

The tracking program is intended to give Microsoft greater amounts of data and deeper insight into partner performance. With that level of intelligence, Microsoft will be better able to align partner benefits and rewards with performance.

All channel programs operate on this principle of rewards following performance. However, vendors are notoriously short on ability to track or enforce program benefits because they lack transparency into partner operations. Many vendors are looking to implement new partner relationship management (PRM) platforms to track partner activity and link performance to rewards.

When it comes to tracking partner performance, Microsoft is a leader. Solution providers should monitor the progress of this program. If successful, it will likely be replicated by other vendors.

* * *

Lawrence M. Walsh is CEO and president of The 2112 Group, a technology business advisory service that specializes in optimizing indirect channels and partner relationships. He’s also the executive director of the Channel Vanguard Council. He is the former publisher of Channel Insider and editor of VARBusiness Magazine. You can reach him at lmwalsh@the2112group.com.

On Twitter:
Larry Walsh:@lmwalsh2112| Channelnomics: @channelnomics

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  
More on Channel Business
mock3-0913

Channel millennials to learn from older peers with new CompTIA initiative

Initiative may help with 2015 emerging threat of millennial expectations

NY traffic lights

Gigamon launches partner program

Traffic visibility firm includes pre- and post-sales training certifications in new partner program

Sales online and in the shops

Black Friday wearable tech uptake splits industry

Shoppers may have snapped up a bargain wearable device on Friday, but just how much impact will this have when they choose to wear it to work today?

Backbytes - a happy computer

Perk up! HP opens up former direct-only perks to the channel

Latest ServiceOne partner program released as Q4 results disappoint

Visitor comments
Add comments
blog comments powered by Disqus
In-depth
ken-shaw-infrascale

Vendor Q&A Series: Ken Shaw Jr., Infrascale

The latest channel exec to sit in the Channelnomics hotseat is Infrascale's CEO

businessman-walking-rope-outdoor-balance

MSP market saturation may lead to smaller players being dumped by vendors

Smaller players need to ensure that they don't fall prey to solution provider consolidation by vendors

Questions

Windows 10 service model raises enterprise, channel questions

Microsoft is banking on the fact that its next OS will be an improvement over prior iterations, but will the product’s sales model be as well received as the product itself?

Handshake in London

Microsoft Big Data acquisition shows willingness to embrace open platforms

The software giant embraces yet another open-source tool in R and stakes its claim in the analytics arena