Microsoft denies distribution cuts
Software giant dismisses channel speculation about its forthcoming distribution partner review
Microsoft has denied speculation that it is to slash its UK distributor numbers during its forthcoming annual distribution partner review.
The software giant has six distribution partners in the UK: Computer 2000 (C2000), Gem Distribution, Ingram Micro, Ideal Hardware, Actebis and Enta Technologies.
Currently only broadliners C2000 and Ingram can distribute the vendor’s entire licence ranges. However, the vendor told CRN that it intends to perform a distribution partner contract review in the coming months.
Karl Noakes, director of partner development and marketing at Microsoft, said: “Microsoft distribution contracts are renewed annually, at the beginning of each financial year.”
However, one channel source, who asked not to be named, told CRN that the vendor may have already decided which distributors would be cut.
“Microsoft renews its distribution contracts on an annual basis,” the source said. “This year I have heard that there is going to be two casualties. I think it has made its decision.”
However, Noakes added: “Microsoft has no plans to reduce its distribution partners in the UK.”
Darren Neeth, general manager of software at C2000, was sceptical of a distribution cull.
“All vendors review their distribution strategies on an annual basis,” he said. “Not all distributors carry all of [Microsoft’s] products. If it axed one distributing licensing, for example, it would have to quickly cover that gap”