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Microsoft makes incentive errors

CDN CURATED: Software giant to pay out $32 million worldwide because of a glitch

Microsoft Corp. is doing the right thing and allowing solution providers to keep incentive payments that they did not earn, but received because of a calculation error.

The ChannelNomics Web site published a report citing CRN UK that the error resulted in a $32 million blunder.

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The program in question is the Microsoft Solution Incentive Program or SIP and it paid $32 million roughly to a number of solution providers across the global. The report did not indicate how many or if any were based in Canada.

The report also uncovered an email from Microsoft to partners that read: after financial analysis Microsoft found that “ineligible Software Assurance only and/or Recurring Revenue” was added to the incentive when it shouldn’t have. When you look at the sum of $32 million spread across many channel partners all over the world I would think the cost of recovering that money would be more than $32 million and so Microsoft after a cost-benefit analysis decided to be charitable during the opening of the Thanksgiving Day and Christmas Holiday season and good on them.

Channel partners will appreciate the sentiment because most of them hate to be nickeled-and-dimed by vendors.

You can read the entire story by clicking here.