As companies pull back on cloud projects and Alphabet IncGOOGGOOGL Google’s deal growth slows, senior Google Cloud sales leaders have told managers to expect changes in how the staff gets paid next year.
Executives at Google Cloud explored basing sales commissions on how much customers spend rather than the total contract value, the Information reports.
Google, in recent years, signed billion-dollar, long-term deals with multinationals like Deutsche Bank AGDB and Sabre CorpSABR, intensifying competition with Amazon.com IncAMZNAmazon Web Services.
So far, Google has incentivized sales teams to nail those deals by basing a portion of their commissions on the value of the contracts, even if those customers did not spend the total amount on Google Cloud services.
Amazon dominated the cloud-infrastructure industry with a 39% share of the 2021 global market, ahead of Microsoft CorpMSFT in the second position with a 21% share.
Tesla IncTSLA CEO Elon Musk has ordered Twitter Inc’s teams to find up to $1 billion in annual infrastructure cost savings. Cost cuts could also come from reduced spending on Google Cloud services.
Price Action: GOOG shares traded lower by 1.35% at $96.48 on the last check Monday.
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