Enterprise

A Microsoft Reseller Explains A Big Fat Reason Why Microsoft's Surface PC Hasn't Sold Well

Read in app
Steve Ballmer Microsoft
Microsoft CEO Steve Ballmer  Microsoft

Microsoft hasn't said how many Surface tablets it has sold so far, though various reports put sales at somewhere between disappointing and dismal.

In March, reports indicated that Microsoft had only sold about 1.5 million tablets. Those are really old numbers, we know, but there hasn't been any indication that Surface tablets have gone crazy since then.

The whole PC market, including Windows 8 devices, has been shrinking. And Microsoft is not named among the top PC vendors in market research reports.

There's something that Microsoft could do, tomorrow, that would really help the situation. It could let its entire, massive reseller channel sell tablets to their customers. Resellers pull together hardware and software to sell a whole package, often writing custom software, too. They could do this with Windows 8 and the Surface Pro if Microsoft let them.

Microsoft did recently agree to let a handful of its biggest resellers sell the Surface tablet. But instead of telling the rest of them that they could do the same last week at the company's Worldwide Partner Conference in Houston, COO Kevin Turner said something different.

He told the resellers to bring their customers to a Microsoft Retail store and show them the Surface devices there: "You should feel free to use our store as an extension to your office," he said. "Bring your customers there."

Bob Venero, CEO Future Tech
Bob Venero, CEO Future Tech  Future Tech

Bob Venero, CEO of Holbrook, N.Y. reseller Future Tech, was incredulous.

"Really? Hey guys, let's bring our customers in and tell them, 'Look at all of this cool stuff. By the way, you can't buy any of it from us.' What? It's insanity," Venero told Business Insider.

Keeping the Surface away from the channel is also "an emotional issue" for resellers because the Surface is supposed to represent the best Windows 8 PC possible, he said. Why wouldn't Microsoft want its partners to be able to sell the best, he wonders.

Microsoft's reorganization last week doesn't look like it will solve the problem anytime soon.

"I"m trying to figure out the rationale, to understand why they put the Surface under a retail scenario. Xbox is retail. Where clearly the direction we're told from Microsoft is that Surface is for corporate [users] and it wants to drive it into the enterprise."

In that case, it makes even more sense to let resellers sell it, he believes.

Meanwhile, with the Surface firmly out of reach, Venero has other options.  He just lead a deal to equip his customer, JetBlue, with 2,500 iPads for its pilots.

"As Microsoft continues to go down this path with Surface and alienating its partners that drive Microsoft solutions, at the end of the day its another slap in the face to the partner community,"  he told us.

We asked Microsoft why it hasn't made the Surface available to all of its reseller partners. This is Microsoft's response:

"This first phase of authorized resellers were selected because of their extensive knowledge, services and support they’re able to bring to the Surface family. We’ll sign up more resellers and reach more countries in the coming months, but have nothing further to share at this time."

Read next

Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.