SoftwareONE: Microsoft Relationship & Business Model Strategy
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I want to spend a few minutes discussing the Microsoft relationship, as it's crucial for the business. You mentioned that SoftwareONE wasn't given any special treatment by Microsoft and was treated like any other distributor or reseller. I would like to understand how that relationship is managed. How many interactions do you have with Microsoft corporate annually? What quality scores does Microsoft use to rate you? Is there ever a risk of SoftwareONE being removed from the preferred vendor list due to not meeting certain criteria? How does it all work?
There are operational and strategic aspects to consider. Operationally, we must fulfill contractual obligations. When we sell software to a client, we purchase it from Microsoft and sell it to the customer. We need to pay Microsoft on time and meet all requirements. If we don't, we face penalties, such as receiving fewer fees. Microsoft wants a clear, efficient relationship with vendors. This isn't a risk, just a matter of not receiving all entitled fees if things go well. SoftwareONE has always met these obligations without issues. Discussions occur with Microsoft headquarters and regional offices if something is amiss, but these are open, transparent, and friendly to fulfill the contract.
This is a snippet of the transcript.to get full access.
I want to spend a few minutes discussing the Microsoft relationship, as it's crucial for the business. You mentioned that SoftwareONE wasn't given any special treatment by Microsoft and was treated like any other distributor or reseller. I would like to understand how that relationship is managed. How many interactions do you have with Microsoft corporate annually? What quality scores does Microsoft use to rate you? Is there ever a risk of SoftwareONE being removed from the preferred vendor list due to not meeting certain criteria? How does it all work?
Strategically, Microsoft grants fees to SoftwareONE and competitors based on strategic moves they want to see. It's like a bonus scheme where you can earn a large or small bonus. As SoftwareONE or a competitor, you need to adapt your business model to align with Microsoft's strategic goals. The better you fulfill their objectives, the more fees you can generate.
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