As generative AI reshapes corporate buying and marketing strategies, Microsoft (MSFT, Financial) is significantly relying on third-party partners for software sales to small and medium-sized businesses. This strategic shift reflects the tech giant’s adaptation to new market demands driven by AI advancements. Microsoft’s commercial leader, Judson Althoff, announced plans to expand the role of outsourced sales partners and broaden the scope of internal sales personnel beyond specialized domains to promote comprehensive solutions, particularly AI-related products and services.
A Microsoft spokesperson highlighted the need to realign their commercial solutions architecture to support customer and partner growth in the AI era. This transition mirrors the evolving purchasing behaviors, aiming to offer services more aligned with real-world needs. Historically, large tech firms like Microsoft balanced direct sales teams with indirect distributors, but the post-pandemic shift and AI’s rise have prompted a reevaluation of sales strategies.
For instance, Salesforce (CRM) now sells through platforms like Amazon (AMZN) and intends to recruit sales teams focused on AI products. Workday (WDAY) is also increasing third-party software sales to enhance profitability. Last year, Microsoft improved its incentive scheme for third-party partners, encouraging indirect sales models while recently reorganizing some tech teams to optimize costs and boost AI product growth.
