A New License To Sell

Take no mistake about it. Microsoft's vice president of U.S. Small Business and Broad Channel Sales and Marketing, Bob Clough, says the software giant is depending on its 40,000-plus independent solution providers for more than 50 percent of sales of its new annuity software licensing program.

That's a big statement regarding how important those bread-and-butter solution providers are to the company as it approaches the cut-off date for users to sign up for its new annuity licensing model. There is, in fact, a hard July 31 deadline for customers to get the significant savings that will come as a result of signing up for annuity licensing.

STEVEN BURKE Can be reached at (781) 839-1221 or via e-mail at sburke@cmp.com.

Clough anticipates that about 2 million companies in the United States are strong candidates for annuity licensing. So far, Microsoft solution providers have sold hundreds of thousands of the licensing plan, Clough said. "That means the majority [of prospective customers] are still available out there for entrepreneurial VARs to sell to," he said. What's more, Clough emphasized that the July 31 deadline,which was extended last fall,will not be extended again.

Solution providers must make sure their customers are well-informed about the pros and cons of the complicated annuity licensing model. As the trusted IT decision-makers for small business, solution providers must help their customers discern whether annuity licensing is right for them. A wrong decision could end up costing some businesses that do not take advantage of the Microsoft licensing programs big bucks. Licensing 6.0 marketing templates are readily available on Microsoft's partner Web site.

Clough's call to action came after he sent a letter to Microsoft resellers last week apologizing for any "confusion" that may have been created in the wake of the direct-mail campaign to small businesses that Microsoft conducted with CDW and PC Connection. The bottom line, said Clough, is that Microsoft is depending on independent solution providers to act as the company's sales force when it comes to driving home the value of the annuity licensing model to small businesses.

My bet is that the support of those independent solution providers is going to pay off for Microsoft.

What are your thoughts about Microsoft? Let me know at (781) 839-1221 or via e-mail at sburke@cmp.com