Microsoft threatens distributor cull

The software giant claims it will drop one of its broad line distributors by the end of the month
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Either Computer 2000, Ingram Micro or Bell Micro could be dropped by Microsoft by the end of the month, in accordance with an announcement it made in October that it would drop one of its broad line distributors by June, reported CRN.

“The decision is due at the end of June,” said Andy Gass, managing director of C2000. “We still believe they will get rid of one of us. If they don’t then it will be a huge climb down for Microsoft. Personally I believe Microsoft is achieving what it wanted from the process. We’ve achieved the focus Microsoft wanted us to achieve and have performed well and that is all I’m prepared to say at this stage.”

Bhavesh Patel, commercial director at Ingram Micro added: “We have worked very closely with Microsoft in meeting our shared objectives, and the current review focuses on how Microsoft’s distribution partners differentiate themselves in the marketplace and the value they bring. These types of reviews are not uncommon, and in general we have seen the bar raised in terms of the focus and quality of business in the channel since the review began.”

However there is growing conjecture as to whether or not Microsoft will go ahead and make such a move.

“The cynic in me wonders if this was an exercise to get the distributors performing as Microsoft wanted them to,” said Robert May, managing director of Microsoft Gold partner Ramsac. “It has certainly made all of the broad liners focus.”

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