Microsoft's licensing changes are significantly impacting resellers, as evidenced by Bytes Technology Group's 25% drop in shares due to delayed customer buying decisions and reduced financial kickbacks from Enterprise Agreement renewals. The company reports that around 50% of its gross profit is derived from Microsoft sales and expects flat gross profit with lower operating profits for the fiscal year. In response, BTG is restructuring its sales teams from a generalist model to specialized teams aiming for better service delivery and growth in recurring revenue.
Around 50 percent of Bytes' gross profit is believed to come from Microsoft sales, indicating heavy reliance on this partnership for revenue.
BTG is shifting from a generalist model to specialized, customer-segment-focused teams to enhance its service offerings and drive annuity income growth.
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