Does Microsoft Have Too Many Partners?
There is a simple logic in partner strategy; the more people you have selling your products, the more products you sell. Unfortunately, it's not all that simple. Too many sales partners dilute the pool, and means a smaller slice of the pie for everyone. Then partners start to drop out, because it's just not worth their time. From a vendor perspective, the optimal number of partners is the greatest number possible before the dropout starts to occur.
A lot of Microsoft partners have long felt that there are too many partners already, but Microsoft has announced plans to double that number within five years. With half a million partners already, when that number hits a million everyone will be selling Microsoft, from the biggest integrator down to the corner store where I buy my lottery tickets.
The general sentiment is that the top tier of partners--the "Gold" ones--is already oversaturated and doesn't mean much any more; and there needs to be another tier to allow the best of the best to differentiate themselves. Much of the partner growth is likely to be in the area of hosted services, Microsoft's newest area of interest, and this is where partners are going to have to focus to stay in the Microsoft business.
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