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Traditional Tech Companies Push Cloud Sales

Microsoft, Oracle, IBM said to shift sales incentives for sales people.

By Brian Womack, Dina Bass and Jing Cao, Bloomberg | Updated on November 03, 2017

Microsoft Corp., Oracle Corp. and IBM—looking to stoke demand for cloud computing services—are said to be shifting incentives for their sales representatives, pushing them to ensure customers become active users over the long haul.

Microsoft in July revamped the way it pays its sales staff to tie incentives to how much customers actually use cloud-based software—rather than how many sign a contract for cloud services, according to sales chief Judson Althoff. Oracle has been rolling out new rewards for at least some employees that also are connected to customers’ use of its cloud services, according to people familiar with the matter. And International Business Machines Corp. in the past year has restructured its cloud sales team and tied compensation more closely to usage, according to other people with knowledge of the matter.

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