Microsoft’s recent incentive changes continue to leave their mark on SoftwareOne’s numbers as it ramps up its integration of peer Crayon.
The Switzerland-based software licensing giant said Microsoft’s well-publicised 1 January 2025 changes “continued to weigh” on its performance in Q2.
In contrast, Norway-based Crayon – which has a larger CSP business – remains largely unaffected by the rumpus.
SoftwareOne completed its acquisition of Crayon on 2 July, creating a 13,000-employee software licensing and cloud solutions monster. The Microsoft incentive shift was seen by some as a pivotal factor behind the union.
The duo already claim to have bagged runrate cost synergies of CHF 11m (£10.2m) through the “reduction of duplicative management roles”.
That compares with the total CHF 80-100m (£74m-£92m) cost savings they’re targeting by the end of 2026.
Microsoft billings slump
SoftwareOne’s standalone Microsoft billings plunged 9.2% year on year to CHF 6.5bn (£6bn) in the second quarter, according to the duo’s first joined-up results statement.
This was “driven by Microsoft taking certain large customers direct and proactive measures by SoftwareOne to pivot towards more profitable business given incentive reductions on enterprise agreements”, it said.
Although Crayon’s Q2 results came in below expectations, it claimed it mitigated the impact from reduced Microsoft enterprise agreement incentives with CSP transition and other incentives.
Crayon’s total gross sales rose 16.5% year on year to NOK 21.2bn (£1.56bn) in Q2.
For the first half, SoftwareOne saw revenue fall 8% year on year to CHF 488m (£451m) and adjusted EBITDA slip 5.8% to CHF 114.7m (£106m). Its adjusted EBITDA margin rose by 0.5 points to 23.5%.
In the same period, Crayon saw revenues inch up 1.7% year on year to NOK 3.608bn (£260m) but adjusted EBITDA tumble 23.7% to NOK 469m (£34m). Its adjusted EBITDA margin sank from 19.2% to 14.6%.
Crayon employed 4,133 staff as at 30 June 2025, up 19 employees year on year, while SoftwareOne’s headcount fell by 529 year-on-year to 8,795.
“Confident in our ability to deliver growth”
SoftwareOne CEO Hanspeter Schraner said the enlarged company expects to post “improved results” as it progresses through its second half, partly driven by lower impact from the Microsoft incentive changes.
The company expects revenue growth for its full year to be flat in constant currencies on a combined like-for-like basis. Adjusted EBITDA margin is set to top 20%.
Over the coming months, SoftwareOne and Crayon plan to roll out a joint operating model, harmonise their GTM and offering, and fuse their IT systems and legal structures in overlapping countries.
“While the integration phase temporarily adds complexity and requires management focus, we are confident in our ability to deliver the targeted synergies and growth going forward,” Schraner said.
SoftwareOne Co-CEOs Raphael Erb and Melissa Mulholland, said that integration and synergy achievement are “progressing according to plan”.
“At the same time, we continue to pivot towards growth opportunities, including CSP and service-led offerings such as AI enablement, FinOps and cybersecurity by leveraging our combined capabilities, deep hyperscaler partnerships and aligned GTM, including the channel business and digital hubs to unlock the SME opportunity,” they added.
