Question

Describe the channel of distribution for Microsoft, and its place in the channel. Has disintermediation (the elimination of intermediaries) been a factor for Microsoft or its industry? Explain.

Answer 1

Microsoft Market and distribute the merchandise and services primarily through the subsequent channels: OEMs; distributors and resellers; and online-

1- OEMs
We distribute code through OEMs that pre-install our code on new PCs, tablets, servers, smartphones, and different intelligent devices that they sell to finish customers. the most important element of the OEM business is that the Windows software package pre-installed on computing devices. OEMs conjointly sell hardware pre-installed with different Microsoft merchandise, together with server and embedded operative systems and applications like our Microsoft workplace suite. additionally to those merchandise, we tend to conjointly market our services, like our Windows SkyDrive service, through OEMs. There area unit 2 broad classes of OEMs. the most important OEMs, several of that operate globally, area unit observed as "Direct OEMs," as our relationship with them is managed through an instantaneous agreement between Microsoft and also the OEM.

- Distributors and Resellers
Many organizations that license our merchandise and services through enterprise agreements interact directly with America, with sales support from resolution integrators, freelance code vendors, net agencies, and developers that advise organizations on licensing our merchandise and services Enterprise code Advisors. Organizations conjointly license our merchandise and services indirectly, primarily through giant account resellers LARs, distributors, added resellers VARs, OEMs, system builder channels, and retailers. though every sort of reselling partner reaches organizations of all sizes, LARs area unit primarily engaged with giant organizations, distributors sell primarily to VARs, and VARs usually reach small-sized and medium-sized organizations. Enterprise code Advisors usually are approved as LARs and operate as resellers for our different licensing programs, like the choose and and Open licensing programs mentioned underneath "Licensing Options" below. a number of our distributors embrace Ingram small and school knowledge, and a few of our largest resellers embrace CDW, Dell, Insight Enterprises, and code House International.

- Online
Although client-based code can still be a very important a part of our business, more and more we tend to area unit delivering extra price to customers through cloud-based services. we offer on-line content and services to shoppers through Bing, MSN portals and channels, Microsoft workplace net Apps, Office 365, Windows Phone Marketplace, Xbox LIVE, Outlook.com, Skype, and Windows Store. we tend to conjointly offer to business users industrial cloud-based services like Exchange on-line, Microsoft Dynamics CRM on-line, Windows Azure, Windows Intune, and workplace 365 consisting of on-line versions of workplace, Exchange, SharePoint, Lync, and Yammer. different services delivered on-line embrace our on-line advertising platform with offerings for advertisers and publishers, furthermore as Microsoft Developer Networks subscription content and updates, periodic product updates, and on-line technical and apply readiness resources to support our partners in developing and merchandising our merchandise and solutions. As we tend to more and more deliver on-line services, we tend to sell several of those cloud-based services through our enterprise agreements and have conjointly enabled new sales programs to achieve little and medium-sized businesses.