Microsoft recently introduced private offers enabling partners to customize payment plans for some Software as a Service (SaaS) products. This innovation allows customers to choose how and when they make payments, catering to their budget cycles. For instance, a customer could make staggered payments of $10 million and $5 million across a two-year agreement. This initiative responds to buyer criticism regarding fixed subscription fees that do not reflect cash flow variability, particularly during seasonal business fluctuations. The goal is to streamline sales and enhance deal velocity while addressing economic uncertainties.
Microsoft's new private offers for partners allow customizable payment schedules for SaaS products, aimed at aligning with customers' budget cycles.
The transition to variable subscription fees addresses buyer concerns about cash flow fluctuations, especially for seasonal businesses.
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