Jeff Abbott, InforInfor will cut margins for maintenance and support, amid what appears to be broad new approach that will have a severe impact on its channel. The change is effective June 1. There are reports that maintenance and support margins, are being cut 50 percent and that the channel was blindsided by a move that will have a severe impact. Also making the rounds is the belief that Infor is going to stretch out payments to its channel.

In a prepared statement, Jeff Abbott, SVP of global alliances and channels, said the company "is confident the new terms remain competitive with industry standards. At the same time, Infor will provide greater opportunity for partners to capitalize on Infor's license growth, which is significantly outpacing the market, with new partner commission accelerators." I have reports that some margins will be as low as single digit  percentages. Apparently, this was a high-level decision in which Infor, after carefully building a channel over the last two years, wants to boost its results in hope of going public. Infor says it signed 43 American VARs in 2013 among 163 worldwide. Could be some very short-term relationships. A report from the Information Technology Alliance Spring Collaborative conference underway this week said Infor VARs among its attendees are "all deciding which products they'll pick up to replace Infor." This is not just the usual grousing of the channel about margins--this is about business people screaming in pain.

Last modified on Tuesday, 29 April 2014
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Bob Scott

Bob Scott has been informing and entertaining the mid-market financial software community with his email newsletters for 10 years. And he has been covering this market through print publications for 18 years, first as technology editor of Accounting Today and then as the Editor of Accounting Technology from 1997 through 2009. He has covered the traditional tax and accounting profession during the same time and continues to address that as executive editor of the Progressive Accountant.

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