Forum Discussion
I have a question about upcoming FY26 on the Distributor side minimum of 30 million USD TTM billed.
Hello,
I am including a link to the distributor requirements here.
Notifications for January enforcement started this month. I am including a link to our FAQ . This FAQ includes information on how to determine your anniversary month on page 5 and information on how TTM is calculated is available on page 4.
Please note that both links will require a login to partner.microsoft.com
No, i would interpret the wordings that (after signing in a given month / certain year) we now enter a new situation per 1st of October. After that; in the second year (MS FY27) starting in the month in which you originally signed agreement the revenue requirement comes into play.
So brutal!!! The Market Share Sizing varies significantly by country, and yet Microsoft has come up with such ridiculously dumb rules. It is impossible for each country's proportion to reach the minimum of 30 million USD. It feels like they’re deliberately pushing partners and distributors to offboard more aggressively. Seriously, what are they thinking?
This is 100% true and exactly the goal of Microsoft. They want to narrow down the amount of partners they need to manage and push it all towards the indirect channel (Indirect Providers / Distributors).
Microsoft is not looking to have a lot of small Direct Bill partners, so they increase the requirements for them.
If they don't meet the requirements, they will need to transact via Indirect Providers / Distributors.
Same applies to Indirect Providers / Distributors. They don't want many small distis in the markets, but only a few large ones.
I've you're not meeting these Indirect Provider / Distributor requirements anymore, the message is clear. Consolidate your businesses, merge with other small distis, or offboard your business.
according to https://partner.microsoft.com/nl-nl/partnership/cloud-solution-provider/find-a-provider#! there are 18 Disti's active in NL.
Of course the region they can sell in is EMEA, so if 18 disti's in NL achieve the 30Mio goal = 540 Mio
Expand to 15 regions worldwide with each x disti's achieving the 30 Mio quickly explodes into a lot of money.
Bigger is better in this case, because more countries to sell in = "easier" attainment.
There’s still over a year left to reach the 30M revenue target. Personally, I don’t think even if the vendor or regional teams were to sit down and discuss it, the requirements would Not change conditions in FY26. My company is only authorized to distribute within Thailand. Unless we bring in indirect resellers who can reach customers in regions where distribution is permitted, we’re limited in how much we can scale.
Last year, we achieved 25M USD in sales. But if, by the time of evaluation, we haven’t hit the target, I’ll probably have to move on and look for another brand to work with. At the end of the day, it’s a survival game — who can adapt and hit the numbers. I’ve come to terms with it now, though I was quite stressed at first.
