Report: Microsoft Stalwart CompuCom Facing Demotion in Partner Status

CompuCom, a prominent technology infrastructure services provider and former Microsoft (MSFT) state and local government channel partner of the year, is facing a demotion in the vendor’s coveted Licensing Solutions Partner (LSP) ranks if its performance doesn’t improve, according to a published report.

The solution provider, which also was an early participant in Microsoft’s Devices Program to resell its Surface tablets to business customers, reportedly has come up short on hitting its LSP sales targets and isn’t up to par on its technical certifications, sources told CRN.

According to the report, Microsoft is considering pulling CompuCom’s LSP status, a group said to include some 20 former large account resellers (LARs) transitioned to the new designation more than a year ago and directed to sell cloud and mobility solutions to business customers. Gaining and keeping Microsoft’s LSP badge requires solution providers to adhere to certain criteria, such as maintaining four Microsoft Certified Professional salespeople on staff with license sales expertise.

The report didn’t say whether a review of CompuCom’s performance to date prompted the LSP discussions or if the talks extended to other issues.

CompuCom chief executive Jim Dixon, while not confirming the report, told CRN that the discussions between the two companies is “still an open issue.” Dixon reportedly didn’t elaborate on the points Microsoft and CompuCom are discussing and exactly where the solution provider may not have met the vendor’s LSP standards.

A Microsoft spokesperson didn’t deny the report, providing the standard statement that the vendor “regularly reviews its partner portfolio to ensure we are addressing the market demands of our customers.”

But the spokesperson may have provided a clue or two that something’s up between the two companies, saying that should Microsoft effect a change in a partner’s contract, including CompuCom’s, the vendor would “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.”

Inasmuch as Microsoft is a major CompuCom supplier, the easy bet is the solution provider doesn’t want to jeopardize its LSP status. But something’s amiss between the two, that seems clear.