Partner Compensation Introduced for Open License Sales

A new multiyear licensing program for small and medium-size businesses (SMBs) offers features previously available only to Microsoft’s largest customers, such as annual payments for software and the ability to license all their desktops with one agreement, which reduces license management costs. To sell the program, Microsoft will for the first time offer referral fees to value-added partners and resellers who promote it. The changes could increase sales of Software Assurance (SA), Microsoft’s software upgrade program, and help the company fend off competitors in the SMB market. However, businesses that upgrade infrequently could find the program more costly than other licensing alternatives.

The new program and channel plan will be rolled out in the spring of 2003, but Microsoft has already begun a training program for channel partners. Microsoft emphasizes that the new program, which is still subject to change before implementation, does not replace any current licensing programs, but simply provides customers with another option.