CRN Exclusive: Accenture Ditches Midsize G Suite Customers, Driving Business To Regional VARs

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Accenture, the consulting giant that became a powerhouse in Google's channel with its 2015 acquisition of Cloud Sherpas, has dropped its G Suite practice for non-enterprise customers, driving much of that business to regional VARs.

Accenture told CRN Wednesday that it no longer made business sense to renew G Suite licenses for its smaller customers. Instead, the global systems integrator has been referring customers of the popular cloud-based office productivity suite to Google.

"Based on an ongoing assessment of our Google business, we are connecting smaller business customers directly with Google for help with their product licenses in the future," an Accenture spokesperson told CRN via email.

[Related: Accenture CFO: U.S. Tax Reform Bill Will Likely Result In Modest Increase To Our Effective Tax Rate]

"Managing these licenses is no longer a fit for our business model," the Accenture spokesperson said.

A Google Cloud spokesperson told CRN Google will lean on other partners to avoid any disruption for former Accenture customers.

"Google will continue to support our small business customers through our robust partner ecosystem focused on this market," the Google spokesperson said.

Accenture was recognized in 2016 as Google's Global Sales and Services Partner of the Year, and in each of the five preceding years, Cloud Sherpas won Google's award for its top enterprise partner.

"Accenture is firmly committed to our Google alliance and helping deliver greater value from Google technologies. Accenture is still committed to offering G Suite for enterprise clients," according to the Accenture spokesperson.

But Accenture wouldn't comment on when the change to its practice went into effect, or what was the size threshold for accounts it would keep in-house.

Several Google partners told CRN they have been enjoying a windfall from Accenture's decision to restrict its business.

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