
"Around 50 percent of Bytes' gross profit is believed to come from Microsoft sales, indicating heavy reliance on this partnership for revenue."
"BTG is shifting from a generalist model to specialized, customer-segment-focused teams to enhance its service offerings and drive annuity income growth."
Microsoft's licensing changes are significantly impacting resellers, as evidenced by Bytes Technology Group's 25% drop in shares due to delayed customer buying decisions and reduced financial kickbacks from Enterprise Agreement renewals. The company reports that around 50% of its gross profit is derived from Microsoft sales and expects flat gross profit with lower operating profits for the fiscal year. In response, BTG is restructuring its sales teams from a generalist model to specialized teams aiming for better service delivery and growth in recurring revenue.
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