Insight Enterprises has admitted upcoming changes to Microsoft's partner programme are likely to dent its profits.
As revealed by CRN, Microsoft is rebranding its large account reseller (LAR) partners as licensing service providers (LSPs) as it pushes them towards cloud and online services.
This will see their incentives tweaked from 1 October.
On a second quarter conference call, Insight chief executive Ken Lamneck admitted recent changes to the incentive programme of its "largest software partner" would probably result in lower payments from the firm in question.
"The programme is complex, with many dynamic elements under review... but at this moment we anticipate that the changes will result in reduced incentives from the partner in future periods," he said.
"Over the coming months we will work to develop actions available to us to mitigate the impact of these programme changes."
For its second quarter ending 30 June, Insight saw total sales fall seven per cent year on year to $1.4bn, while net profits fell by a quarter to $26.5m.
EMEA sales fell eight per cent to $421m, with hardware sales dropping 21 per cent.
Sales in North America and Asia Pac fell seven per cent and five per cent, respectively.
Lamneck said the VAR is continuing to see "soft top-line performance", but said gross margins were expanding as a result of service sales and focusing on more profitable products.
"We are continuing to focus on growing our solutions-selling expertise around key technologies and in select markets and verticals, and believe that this will bring value to our clients and shareholders over time," he said.
Insight expects the Microsoft incentive shake-up to hit home as soon as October.
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