Microsoft will be using more external companies to sell software to small and medium-sized customers. This initiative was announced to employees by Chief Commercial Officer Judson Althoff.
This was reported by sources to Bloomberg. Internal sales staff will now have to offer a wider range of products instead of specializing in specific solutions. In addition, more technical training will be offered with a focus on AI products.
“We are evolving the commercial solution areas within our sales organization to better reflect the era of AI and support the growth of our customers and partners,” said a Microsoft spokesperson. “This evolution reflects the shift in how customers and partners are buying and will better serve their needs.”
Microsoft is not the only company revising its sales strategy. Several major tech companies are rethinking their approach due to the more difficult sales environment following the pandemic and the rise of generative AI. In some cases, companies are trying to reduce sales and marketing costs by outsourcing them.
Encouraging partnerships
Like many of its competitors, Microsoft sells software through internal sales teams and indirect sales partners acting as intermediaries. In November, the company announced increased incentives for external partners.
Microsoft regularly restructures teams and announces other changes toward the end of its fiscal year, which ends in June. Earlier this week, some technical teams were also reorganized, according to a memo seen by Bloomberg.
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