Resellers face software price hike
Smaller Microsoft resellers will face higher software prices following the vendor's decision to scrap cash rebates to its distribution partners.
It claimed the move will pass on cost savings to small to medium-sized enterprise resellers. But Microsoft has admitted its action will also drive up software prices as distributors compensate for the drop in turnover.
Rebates to SME resellers will begin from October, said Stephen Uden, head of channel marketing for Microsoft. Details of the scheme have yet to be worked out, but Uden admitted some resellers will not qualify and will be subjected to the higher prices. ‘Resellers will notice a small increase in prices,’ claimed Uden, adding resellers who don’t qualify this year may the following year.