Sonata Software stares at revenue dent as Microsoft eyes direct licence sales | Company Business News

Sonata Software, a prominent player in the IT outsourcing sector, is facing a potential revenue setback as Microsoft considers shifting to direct license sales. Currently, Sonata earns over $500 million annually from selling Microsoft product licenses, a substantial portion of its revenue stream. This move by Microsoft could significantly impact Sonata's financial landscape, given its reliance on these sales. Industry experts highlight that this strategic shift by Microsoft is part of a broader trend where tech giants opt to engage directly with end customers, thereby bypassing intermediaries. For Sonata, this development poses a challenge, as it may need to recalibrate its business model to mitigate the anticipated revenue loss. The company may explore diversifying its offerings or strengthening other partnerships to cushion the impact. While Sonata has yet to comment on its next steps, analysts suggest that the company could leverage its existing customer relationships to offer enhanced value-added services. This pivot could help retain clients who might otherwise transition directly to Microsoft. As the situation unfolds, Sonata's response will be crucial in determining its ability to adapt to the evolving market dynamics.

— Authored by Next24 Live