Microsoft Partners Say Tough Love, Early Start Has Channel Ready For Cloud Success

Microsoft Partners Say Tough Love, Early Start Has Channel Ready For Cloud Success

Microsoft has a number of different mechanisms for getting partners the funding they need for pilots and deployments for end customers, Hertz said. "If you hit the right deal size in terms of licensing, you can get some funding to accelerate the sales process, which allows you to compete more effectively," he said.

Partners also earn incentive payments for selling Office 365 under the Advisor model and the Open model, being partner of record on Office 365 deals.

While these incentives can make partners more profitable, partners can also take this money and invest it in forming new practices, said Ric Opal, vice president of Peters & Associates, a Microsoft partner in Oakbrook Terrace, Ill.

Microsoft doesn't always get it right when it comes to incentive payments to the channel, however. In January, Microsoft made changes to its Online Services Advisor Incentives program that put a significant dent in some partners' profitability. While Microsoft communicated this on its partner portal well in advance of the changes taking effect, some partners felt blindsided by the move.

Microsoft's response was that incentives are fluid and constantly changing, and that partners should not rely on them as a source of income. That wasn't exactly what some partners wanted to hear, but few could argue with the logic, which was very much in line with the direct, unvarnished message Microsoft has been sending partners from the get-go.

There may be future bumps in the road for Microsoft and its partners in the cloud, but in the Microsoft channel, no one would argue that the software giant has not put in the time and effort and investment needed to get partners in a position to compete in the cloud market.

 "There has been a drumbeat from Microsoft saying cloud is the future," Hertz said. "Microsoft has been very candid for years saying, look, this is the future of your business. Make sure you're prepared and we'll be investing on our side."