The Channel logo

back to article Resellers: Cloud is BIG, but it's a sales commission minefield

We’ve all read about how cloud computing is "more than just a buzzword" or a passing phase. And we’re all well-versed in selling the benefits of cloud and managed services in terms of cost-savings, flexibility, managing complex tasks and only paying for what you use. There have also been plenty of wise words written about how …

COMMENTS

This topic is closed for new posts.
Anonymous Coward

Commissions are definitely a big barrier for salespeople to selling cloud services. For most companies the revenue from a cloud contract can only be recognised in the quarter in which it is delivered. A salesperson has a target for each quarter. That target combines licenses and services. In a cloud deal, the license component may be amortised over 2-3 years, i.e 8-12 quarters. So, for a given license deal, it requires about 10 cloud deals of a similar size to reach the same target. A salesperson has limited time to focus on deals to hit their targets. Where will they put their effort?

0
0

So, for those resellers who have made a commitment to the cloud either through investing in the infrastructure themselves or in partnership with another Service Provider, this is likely to be a big problem. I'm interested to hear from company principals and FD's to understand how they are incentivising their sales staff.

0
0
This topic is closed for new posts.

Opinion

Lightning

Jack Clark

Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Microsoft CEO Satya Nadella
ARA_LIbertad

Chris Mellor

Elliott Management sinks its teeth into retiring godhead

Features

Failure to crack next-gen semiconductors threatens to set back humanity
SMEs get lip service - what they need is dinner at the Club
SAP Match Insights
Vorsprung durch grossendatatechnik, as we like to say in Germany
Inside the Google Lab where surgeons prepare the human/dog experiment
Big Blue exec tells El Reg what to keep an eye on