According to Omdia, Microsoft’s recent incentive changes have sapped “tens of millions of dollars” from EMEA channel profitability this year. How much of a hit has Softcat taken, if anything?
On the one hand they took fees out of a certain part of the portfolio, and yes, we’ve taken probably in the year about a £4m hit on that.
That’s exactly what we expected, but we’ve offset that, and our Microsoft business has grown in double digits because we’ve been able to earn the incentives they put in other parts of the programme.
Microsoft have done what they said they would do, and I am still very positive about that because I think the challenge of that evolution that it presents is one Softcat can grapple with better than the competition. I think the way we’ve leaned into that, the way we’ve adapted and are working with Microsoft has gone to plan, and I’m delighted with it.
You said in the results that Softcat’s growth is a “tribute to our special culture”. What do you mean by that?
I’ve got no other way of explaining how we’ve done this. It’s the only thing to explain this ridiculous, unique globally organic track record we’ve got, so long may it continue.
Please shout out to our people, because the attitude and energy they bring is what makes the difference in a market like this. They’ve been fantastic the last few years so they’re the real stars of the show.
Doug Woodburn is editor of IT Channel Oxygen
