Estimated reading time: 1 minute, 1 second

RENEWALS RUFFLE DYNAMICS CHANNEL

dynamics logoMicrosoft's new approach to renewing maintenance and support contracts is producing a lot of unhappiness among Dynamics resellers.  As part of a new channel program, it is rewarding VARs for increasing remewals. But the sore point is Microsoft's decision to renew end user contracts automatically 20 days before they expire, if they have not already been extended. The dealer gets billed for the renewal and if the customer drops maintenance, it's the dealer who faces the paper work to reverse the charge.
Resellers can opt out of automatic renewal and I'd say it's a safe bet that those thinking ahead will do so. The new structure will reward those who keep the percentage of renewals high and penalize those who have been churning customers. Dealers says the channel average is a 93-percent renewal rate. Those who get 95 percent of customers to reup get a 22-percent margin which drops to 18 percent margin for 90 percent to 94.9 percent renewing. Those whose renewals fall below 90 percent get a 15-percent margin. Any organization that is not among the very largest channel members is likely not very happy with the overall changes and I’ve never heard such a negative attitude about Microsoft Business Solutions from so many high-quality, and usually loyal, dealers.
Read 1476 times
Rate this item
(0 votes)

Visit other PMG Sites:

PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.