Its b2b business. Margins are very low and microsoft gives very aggressive targets
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But why software reselling needs high working capital? That too well known Microsoft software products.
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@Sudhakar_Subramanian everytime you get an order for O365 you first get activate the license from
Microsoft platform by paying them money
Then you deliver to customer and collect as per the customer payment terms
These tend to be 30//60 days in large companies
Plus the margin you hVe fromMS is 2-3 percent
For Azure and AWS it might be slightly higher but its significantly lower than the IT Services business
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They haven’t declared dividend after H1, this is quite uncommon since last few years. Anyone has any idea or insight on why it is not declared this time?
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But why does microsoft need reseller can’t they target their audience through website online.
Noob question 
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I have seen in many companies that they prefer to sell to businesses through the partners. I have seen it happen for both big and small customers.
Few things which get unbundled to the partner are:-
- lead generation and sale
- customer engagement. (Partner will have lower cost)
- first level technical support
- incentives to partner to sell more / service better
- bundled pricing to partner
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Drop of almost 50% within one year from the highs, series of meetings with Institutional Investors. Wondering if some thing is coming up. Invested in this company for more than a decade. Never expected one or two quarters of below expectation performance will erode the value so much. Still want to remain invested, but little worried if this is optimism bias? Is it a time to pull out? any views please.
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This article mostly covers all the points related to Share Price Sharp Correction, which are already known, but might help to understand all business related perspectives.
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Thank you @gsapte …helped to understand to some extent, will be interesting to see how management responds. Meeting with Institutional Investors has not helped in terms of Share price, in fact price dropped further!!!