Microsoft’s Enterprise Agreement Shake-Up Hits Resellers

Microsoft’s decision to bypass long-standing partners in its Enterprise Agreement (EA) renewals is sending financial shockwaves through the global IT channel, with UK-based Bytes Technology Group among the first major casualties.

Reshaping the Channel

For years, Microsoft relied on a network of accredited Large Service Providers (LSPs) to handle the sale and renewal of its three-year Enterprise Agreements, i.e. the long-term software licensing contracts tailored to large organisations. These deals provided LSPs with steady commission income and a foothold in enterprise IT procurement. But that model is changing.