Sources: Microsoft May Revoke CompuCom's Status As A Top Partner

CompuCom, a $2.2 billion national systems integrator, is facing the loss of its status as a top Microsoft partner, multiple sources familiar with the matter told CRN last week.

CompuCom, based in Dallas, is what Microsoft calls a Licensing Solution Provider (LSP), which is the only type of partner it allows to sell Enterprise Agreement volume licensing contracts. Sources told CRN there are between 13 and 16 LSPs in the U.S., although a Microsoft spokesperson declined to provide a specific figure.

Microsoft is considering revoking CompuCom's LSP status because it's not meeting revenue targets or investing enough in technical certifications, the sources told CRN, speaking on condition of anonymity because they're not authorized to speak publicly about the issue.

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A Microsoft spokesperson declined to comment on CompuCom's status as a partner, but provided the following statement:

"Microsoft regularly reviews its partner portfolio to ensure we are addressing the market demands of our customers. When we make a decision about a change, we communicate that directly with the partner and assist them in finding and developing the most effective way for their business to sell our products and services to their customers," the spokesperson said in the statement.

CompuCom CEO Jim Dixon declined to comment on the Microsoft situation when contacted through LinkedIn, noting that "it is still an open issue."

LSPs were known as Large Account Resellers (LARs) until July of 2013, when Microsoft debuted the new name and told these partners to focus more on selling cloud and mobility products and services.

To be an LSP, a partner is required to have a minimum of four salespeople who've passed the Microsoft Certified Professional (MCP) exam for license delivery, and two salespeople with the T-36 certification, which gauges their ability to get EA customers to renew their contracts.

The big question now is whether Microsoft will cast a more appraising eye toward the performance of its other U.S. LSP partners.

Some sources told CRN they've heard more LSP partner cuts are coming, and that Microsoft may reduce the number of U.S. LSPs to six by the end of its fiscal 2015 year next June. Microsoft declined comment.

Other sources said it's likely that CompuCom simply isn't performing up to snuff when it comes to adding value in the areas like cloud and mobility, which are the bedrock of CEO Satya Nadella's vision for the future of the company.

"Microsoft is trying to be more selective about its partners, and if a partner isn’t meeting the set of agreed-upon expectations, then they will move to find a partner who will," said one source.

PUBLISHED NOV. 17, 2014