20 Mar.

The impact of the Office 365 price cut

A few days ago I blogged about the Office 365 price cut and raised some questions about what the impact is for partners.

Michael Osterman of Osterman Research wrote a great piece examining the price cut and how it can potentially increase demand – thereby helping partners sell to more customers in order to fill the void left by the 20% reduction in commissions.

In Australia we have to work through Telstra as the exclusive syndication partner of Office 365 licenses for customers who do not have an agreement with Microsoft (eg. School or Enterprise Agreement).
As they also make a margin on Office 365, what is the impact to them? Why have they not passed the price cut on straight away as Microsoft did?

My latest piece on BoxFreeIT gives a bit more context as to what is involved in making a price cut accessible by all, and that it’s not as rosy as the press release may appear.