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8 Microsoft Channel Cutbacks That Made Partners See Red

Microsoft says it invests $2 billion annually in the channel. But a trend of recent Microsoft channel cutbacks has partners concerned about where things are going.

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2. Office 365 Incentive Changes

Starting Jan. 25, Microsoft is changing how it awards incentives in its Advisor Enterprise Agreement Deploy program, with incentives slated to drop up to 40 to 50 percent for some partners.

Partners that sell Office 365, Exchange Online and other Microsoft cloud services were especially upset that Microsoft only gave them 30-days' notice when sales cycles for these services can take up to six months.

Microsoft says its incentives change all the time and are driven by business decisions to drive demand for certain products. That's fair enough, but for partners that were relying on the Office 365 incentives to make the transition to the cloud, the path just got a lot harder.

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