Microsoft Sales Azure High Pressure policy, the number behind the sales staff grievances

Microsoft is using an effective method to earn revenue for its core product, Azure.

A lot of people who keep an eye on their dynamics are finally tempted to wonder: How many users are using azure? How much revenue does it bring to Microsoft?

It is clear that Microsoft does not intend to publish these figures.

But some of the information reveals clues to us.

However, more information shows us how it solves the sales problem. After all, the salesman is not just selling the cloud, but making sure the user is using it all the time.

This annoys a lot of Microsoft's employees because even if they sell a lot of other software, they risk being disqualified, paid and rewarded, or even kicked out.

A number of figures suggest that the program has been remarkably effective, reflecting Microsoft's cautious approach to corporate customers – the largest and most loyal user community.

All in all, here's what Microsoft Azure does with its users:

Since 2011, Microsoft has been using Azure to amass 1 billion of dollars worldwide.

Since 2011, more than 3,000 companies have signed contracts with Azure. However, late-stage data showed that most of the companies did not actually use Azure, who tampered with the contract or did not comply with the contract.

Since 2011, 70% of companies that have signed contracts have not actually put Azure into use. In other words, only 30% of the companies actually execute the contract. A survey shows: "Microsoft cloud services 80% of the profit from 20% of users, most of the registered users actually did not use it later." ”

In 2014, however, its American users soared. Through corporate contracts, Azure is accumulating more than 70 million dollars in the US, with corporate users contributing 47 million. According to the survey, its users climbed 67%.

Out of curiosity about the numbers and the changes in the salary of the salespeople, we asked Microsoft's staff, who responded as follows:

"It's not hard to see that companies of all sizes have a strong demand for Microsoft's cloud services," he said. More than 60% of Azure users use at least one paid service such as media streaming and Enterprise Mobile suite.

Microsoft says its cloud business has gained close to $5.5 billion trillion and has achieved three-digit growth for six consecutive quarters.

Behind the numbers

These numbers send a good message: there is no doubt that more and more companies are starting to use Azure and other Microsoft cloud products.

This is not without risk. In most cases, in order to sell Azure, the salesperson will give discounts on other Microsoft products and then deduct the discounted money for the trial of Azure's credit. Users have a maximum of one year to spend the money. But whether they end up using the money or not, Microsoft will take it as an income for azure.

Disgruntled salespeople call it a "filling distribution channel", a vicious promotional measure that advances revenue in the future to spur a dealer to buy ahead of time.

This is not true, because this is not a packing distribution channel.

In order to attract users to try new products, to reduce prices and even free is indeed an outdated way.

Generally speaking, this is no problem unless the user does not use azure during the probation period. In this way, the later gains from these users will all go to naught, not to mention business growth. The companies then switched to other cloud businesses, with media forecasts that Microsoft's business would "collapse like a card house".

Two reasons for the azure situation

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After a few years of silence, Azure is finally gaining momentum, with two leading factors.

First of all, 2014 is after all the rise of cloud business year, many companies are eager to. As a result, more companies will use the Azure credit scheme to put on the agenda.

Second, as we said earlier, Microsoft has shifted all the pressure on the sales force to improve its performance.

Satya Nadella even issued a public warning to staff before the massive layoffs last year Tue.

"We can only count on the marketing department to showcase our unique value position. Remember, users are the first to use. ”

Sales staff overwhelmed

Information disclosed: In 2014, Microsoft's sales staff were told that their stay depends on the cloud business sales volume and income.

In 2015, Microsoft adjusted the pay mechanism of some salespeople, focusing on cloud products in particular.

Meanwhile, sales of related cloud products have soared, with other software not spared. A staff member revealed to us that Azure's index has been turned into a commonplace.

There are media stations in the perspective of the sales staff to give an image of the summary: "How do I achieve those sales indicators?" I've marketed azure to all those who seem to have the intention of using cloud services. Some of them are not even willing to use the business they bought last year, let alone business growth. ”

A company insider explained to us the reason for the pressure on salespeople: "Azure is a high-growth product." Every year, Microsoft is based on market opportunities and customer needs to assess the sales target, and make corresponding adjustments. ”

We have been told that no matter how much others sell, as long as they can't reach the sales target, they can't get a full salary or even a little salary. Some of the adjusted compensation plans become 25% from the revenue situation, 75% from the number of users, visible or win users more important.

Relevant personnel said: "If I have not completed the revenue indicators, also did not complete the sales target, then nothing important." Not only do I have no salary to take, but I am also criticized. ”

Alone

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For many, the past few months have been tough.

Microsoft's fiscal year starts in July, but salespeople don't know what their sales targets are until September.

Microsoft will launch a new automated IT system this year so salespeople can track their progress. Sources say the system will be available in a few months. It was not long ago that Microsoft said it would use the old system for the last time.

"Last September, when we didn't know the target, we thought about getting ready." After a while, we received an email and spreadsheet explaining the detailed metrics. Finally, last month, the automated service system was born. ”
Some salespeople can advance their salaries, but it is understood that most people do not. We understand that those who advance are, after all, under the double pressure of not getting paid and ignorant of new indicators.

If they do not try to sell more cloud products to meet the targets, it is likely that they will still owe a debt to them when they leave Microsoft.

But the important thing is that this high-pressure policy really works.