Microsoft relaxes payment models for SaaS and VM tools
Microsoft allows its partners to enter into individual payment agreements for SaaS products.
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In future, Microsoft partner companies will be able to offer their customers more flexible payments. For long-term contracts, for example, they can agree individually staggered payment terms and amounts to suit a company's budget planning. Instead of constant monthly payments, such offers can, for example, provide for customers to receive quarterly invoices and pay less in the first year than in subsequent years. Similarly, a set-up fee, for example, can be split over future payments so that Microsoft products can initially be used free of charge.
Microsoft promises itself and its partners faster sales and higher profits with the individual payment agreements. The US company is therefore targeting customers whose revenue varies seasonally, for example through sales in the summer or during the Christmas period. Growing companies can also potentially be acquired as customers who are unable to pay high one-off payments or monthly amounts at the time the contract is concluded, but are expecting growth in the near future.
Costs can be spread over 70 payments
Individual payment agreements are available for Microsoft's SaaS products, VM software reservations and support services for companies in the Professional Services program with contract terms of at least one year. To provide flexible payments, providers must participate in the Microsoft Cloud AI Partner Program and process their sales via the Microsoft Marketplace. Each offer can include up to ten products with their own billing periods. A maximum of 70 payments up to 100 million US dollars can be set up over a contract period.
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All information on the flexible payment agreements can be found on Microsoft's Marketplace blog. The software company also recently announced its intention to invest in Europe. Due to the unstable policies of US President Donald Trump and the uncertainty of European customers, Microsoft wants to increase the capacity of its data centers in Europe by 40 percent. The company also wants to secure its source code in Switzerland in case business operations are prohibited in the USA.
(sfe)
