Microsoft postpones shift to cloudy subscriptions
Summary
Microsoft has indefinitely postponed the date on which its Cloud Solution Providers (CSPs) will be required to sell software and services licences on new terms. Paying month-to-month is more expensive than signing up for longer-term deals under NCE, which also packs substantial price rises for many Microsoft products. CSPs would prefer Microsoft – which rakes in $192 billion annual revenue – wear the risk of that happening, rather than the smaller businesses in the channel. The extension of the deadline is not the end of the matter, because in 2023 Microsoft will stop paying monthly incentive rebates to partners that maintain active legacy subscriptions. Microsoft may therefore have just bought itself 20 extra days of free and easy renewals, without customers or CSPs worrying about the NCE – and by doing so plumped the books for Q4.
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