Microsoft will reduce partner incentives for Enterprise Agreements starting Jan 1, 2025, while increasing focus on Small, Medium, and Corporate (SMC) initiatives and programs like Copilot, Security, Azure Migrations, and Cloud Solutions Provider (CSP).
Data#3’s Response:
Adjusting resources for Enterprise business.
Increasing focus on the SMC segment.
Expanding CSP business, Copilot Solutions, Security offerings, and Azure Migrations.
Impact:
If this change fully applied in FY24, it would have reduced Gross Profit by 3%.
FY25 H1 pretax profit guidance remains unchanged at $31-33 million.
FY25 financial impact is expected to be immaterial, with growth expected in other business areas.
Outlook:
Data#3 expects sustainable earnings growth for the full 2025 financial year.
The change does not affect Infrastructure Solutions but offers opportunities for increased Services revenue.
DTL Price at posting:
$6.63 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)