Microsoft to Expand Use of Third-Party Sellers Amid AI Shift

Microsoft Corp is planning to outsource more of its software sales for small and medium-sized businesses to third-party firms, adapting its sales strategy for the evolving landscape shaped by artificial intelligence (AI).

New Sales Strategy Revealed

Judson Althoff, Microsoft's chief commercial officer, shared details of the initiative with employees on Thursday, according to sources familiar with the announcement.

As part of the plan:

A Microsoft spokesperson said the changes are designed to "better reflect the era of AI and support the growth of our customers and partners," emphasizing that buying behaviors are shifting, prompting Microsoft to evolve accordingly.

Industry-Wide Trend

Microsoft is not alone in adjusting its sales model. Across the tech sector, companies have been rethinking their sales strategies in response to:

Other examples include:

Microsoft's Hybrid Sales Model 

Microsoft already operates a hybrid approach, selling software through both:

Last November, Microsoft further encouraged partner involvement by increasing incentives for third-party sellers.

The company typically announces organizational changes toward the end of its fiscal year, which wraps up in June. Earlier this week, Microsoft also restructured parts of its technical teams, according to internal communications seen by Bloomberg.