Bekker's Blog

Blog archive

The Big Partner Number for 2012 is $5.8 Billion

Every year at the Microsoft Worldwide Partner Conference, Microsoft lays out the total it plans to invest in its massive channel for its coming fiscal year.

This year, that total will be $5.8 billion, Microsoft Corporate Vice President of the Worldwide Partner Group Jon Roskill said Wednesday during his WPC keynote.

"A significant portion of that $5.8 billion is going into channel incentives. Our old incentive model rewarded just the transaction," Roskill said. "Our incentive model now is designed to reward your efforts across the sales cycle."

In a slide, Roskill showed that Microsoft has defined three other stages of the sales cycle that will receive incentives. In addition to "transact," Microsoft will now reward "sell, deploy and manage."

Microsoft has ramped up its stated investment total in the channel from about $4 billion last year and $3.3 billion the year before.

The company's channel consists of about 640,000 partners worldwide. Earlier in the week, Microsoft CEO Steve Ballmer riffed on Microsoft's traditional claim, made a few minutes earlier by Roskill, that the company gets 95 percent of its revenues through the channel.

"Jon said we have 95 percent of our business through partners, I can't find the last 5 percent myself. So, I'm just going to say we've got 100 percent of our business with partners," Ballmer joked.

Posted by Scott Bekker on July 13, 2011


Featured

  • Nebula

    Ahead of AGI, Microsoft and OpenAI Redefine Their Partnership

    In a recapitalization announced Tuesday, OpenAI has launched a new public benefit corporation (PBC) called OpenAI Group, giving Microsoft a 27 percent ownership stake valued at approximately $135 billion.

  • Veeam Acquires Securiti AI To Unify Data Resilience and AI Security

    Veeam Software is making a strategic move into AI and data security by acquiring Securiti AI for $1.7 billion.

  • Microsoft Adds 'Mico' Virtual Assistant to Copilot in Major Fall Update

    In a significant feature update, Microsoft on Thursday said it is reshaping its Copilot AI platform with features that deepen user personalization and enable real-time group collaboration, among other perks.

  • Nutanix Partner Central Rolls Out To Boost Channel Engagement

    Nutanix on Wednesday launched a new platform, Partner Central, to give its channel partners a unified digital workspace for managing sales, tracking incentives and collaborating more effectively.