My previous post two posts laid out the implications of Microsoft’s CSP program updates and practical actions that Direct Bill partners can take to assess transitioning to an indirect reseller model.
Microsoft’s wide sweeping changes also affect distributors. Any falling below the new thresholds will mean their resellers must move to a new distribution provider.
All this is happening at a time when some resellers are already having to customers to CSP as a result of changes to Microsoft’s Enterprise Agreement criteria.
Regardless of the catalyst, identifying the right Cloud Distributor for your business is important. Whether you need to conduct a rigorous selection process or can make a choice and move quickly, the decision on who to go with should factor in their ability to sure up your position in the Microsoft ecosystem.
Microsoft’s channel strategy is clearly shifting toward quality and sustainability. The announced changes will push partners to align by adopting new technologies and maintaining high standards in support and competency. Most of all, Microsoft is signaling that deep customer engagement is critical to a partners’ ability to deliver value.
We’re being invited to join Microsoft on a new ‘journey to value’. The path they’ve mapped leads resellers to expand their capabilities well beyond licensing and maintaining the commoditised layers of public cloud.
The new value generation zones are Business Applications, Data and AI, Cybersecurity and creating high-margin, service-led offerings that leverage Microsoft’s platforms to meet niche and/or vertical customer needs.
Useful questions to think on include:
Once this is clear, you’ll have a strong ‘why’ to support a decision on the right distribution partner for your business.
While every partner will set objectives unique to their vision and mission, some are more universal. I’ll use examples of these to highlight – at a high level – the different ways a Cloud Distributor can contribute to strategic priorities.
If your objective is revenue growth, distributors can contribute with price discounts or additional margin points that provide situational value; cashflow headroom, winning price sensitive bids or securing an at-risk customer.
Other methods include working with you to build and package higher-margin service-led offerings, providing access to co-sell and GTM support to reach new customer segments. Distribution partners may also invest in market studies that can help partners to identify white space opportunities and position effectively in response to changing customer priorities. These strengths can contribute to the increased competitiveness, faster time-to-market and stronger win rates needed for top-to-bottom line growth.
What do you need to do to stand out in a crowded market? You can offer standardised bundles, leverage off-the-shelf campaigns or execute a rebates-focused push. Or build something repeatable and valuable that only you can deliver by being supported with the tools, vendors, and data to make it possible.
Are you happy to hold off on automation and stick with running processes and vendor portals manually? Prefer the ability to customise billing or provisioning on the fly? This avoids retraining, keeps familiar workflows in place and gives your team a hands-on approach.
If your objectives included reducing risk and inefficiency by automating what slows you down, lowering overheads, accelerating fulfilment, and scaling without adding headcount, factor this into conversation with prospective cloud distribution providers.
Embedding risk management into your GTM and service delivery can reduce exposure to compliance breaches, licensing errors, data loss and reputational harm. If this matters to your business, you’d want to assess if a cloud distributor can enable solution design that incorporates security, compliance, continuity and governance from the outset.
Alternatively, you may prefer minimum viable stacks that will get deals done fast and being free to manage security configurations decisions yourself. You can always call support if things go sideways.
Distribution partners that stay hands-off after the deal close may mean fewer touchpoints, faster cycles, and more time to chase new logos. If your need is for structured customer success motions, usage insights, onboarding support and managed service enablement, inquire on what a prospective distribution partner can do to help you keep customers engaged.
Value differentials + alignment to Microsoft strategy = right distributor for you.
| Partnership vs. Transactions | A strategic partner doesn’t just send invoices – they actively help you grow. They’ll provide practical tools that empower you to get ahead, not just keep up.
Look for business acumen combined with technical expertise; this is where innovation turns into action. |
| Breadth of Capability | Billing systems that are more than a one trick pony.
Look for a versatile platform that goes beyond simplified billing insights to give you analytics, control, and time savings you can invest in customers. |
| Proven Track Record for Tough Situations | Who steps up to help partners out when they’ve been let down elsewhere?
The right distribution partner can turn complex challenges into opportunity for their partners, like moving customers smoothly from EA to CSP. |
| Security You Can Trust | Cybersecurity isn’t optional anymore. Your distributor should be clearly on top of it, with robust security tools and practices baked into their offering, keeping your business protected from today’s risks.
Even better, they will provide services that help partners to scale their cybersecurity practices and that support deep customer engagements. |
| Enabling Your People | With the pace of technology accelerating, skills gaps are a given.
The right distributor actively helps you bridge that gap, providing training, certifications, and plenty of resources to boost your team’s capabilities. |
| Influence with Major Vendors | It’s one thing to claim vendor partnerships but look for distributors who actually influence vendors—those with deep ties to Microsoft and other major players.
Real influence means quicker support, better access to incentives, and smoother navigation through program changes. |
Alignment to Microsoft's strategy will matter.
Our experience with complex change, deep vendor relationships and robust systems ensures SoftwareOne has the staying power to navigate with you on a new journey to value.
Our decision to move our Direct CSP business was driven by the need to reduce our operational costs and streamline our back-end processes. After evaluating several options, we found that SoftwareOne stood out due to their comprehensive service offerings and customer support.
The advantages that weighed in on our decision included SoftwareOne’s experience in the CSP space, and their commitment to helping businesses optimise their cloud investments. Their platform provided us with the flexibility and scalability we needed to grow our business without compromising on performance or security.
What truly set SoftwareOne apart was their dedication to understanding our unique needs and providing tailored solutions. Their team was incredibly responsive and proactive, ensuring that we had all the resources and support necessary to make the transition smooth and successful. Working with SoftwareOne has been a big step forward for our business, and we couldn’t be happier with our choice."
– Jamie Hutchins, Director, Core Desktop
We were one of the early companies to join the direct CSP program with Microsoft but constant changes to the program requirements led us to explore becoming a Tier-2 CSP partner with SoftwareOne. SoftwareOne was extremely responsive to our inquiries and worked with us on a strategic plan that would support our ability to thrive and grow as an indirect reseller.
SoftwareOne’s knowledge of the Microsoft ecosystem is impressive and drives value well beyond simply purchasing CSP licenses. Tapping into specific pre-sales and technical resources has seen us expand across Power Platform, Azure and Copilot, and SoftwareOne is always quick to respond to our sales and account inquiries. The value-focus in our relationship with SoftwareOne is what makes the difference. It’s why they are our Cloud Distribution provider of choice, and why we’ve worked with them for over ten years."
– Simon Staniforth, Partner and Senior Consultant, TotalCRM
We think beyond tactical pricing and margin jumpstarts to deliver the market insight, business acumen, technical advisory and partner services that fuel sustained business acceleration.
Microsoft’s channel strategy is changing – but with the right approach, it doesn’t have to be disruptive. At SoftwareOne, we’ve built the people, platforms, and experience to guide partners through this evolution.
If you want to stay competitive in the Microsoft ecosystem, now is the time to act.
If you want to stay competitive in the Microsoft ecosystem, now is the time to act.
