Microsoft recently announced the addition of revenue requirements for CSP Direct-bill partners. It has often been rumored that Microsoft will enforce performance targets for direct partners. This new revenue threshold will undoubtedly force existing partners across the world to re-evaluate the cost, time and investment required to maintain a direct relationship with Microsoft.
New partners enrolling in the Microsoft Cloud Solution Provider program will begin as an indirect reseller effective October 2020. These partners will need to work with an indirect provider, such as SoftwareONE, who offers infrastructure, support, automation and services.
For existing direct-bill partners currently enrolled in the Cloud Solution Provider program, this performance standard will go into effect starting January 2021. These partners must meet the new revenue target of at least USD$300K in CSP revenue during the preceding twelve months and have an active partner paid support plan to fulfill the new CSP direct bill requirements. These partners will need to meet the new performance requirement by the anniversary date of their paid support plan. If direct-bill partners do not meet the new revenue requirements, they will need to re-enroll as a CSP indirect reseller and transition existing business to the CSP indirect model.
Microsoft’s new direct-bill partner requirements further showcase their commitment to the indirect channel model. Microsoft will continue encouraging partners to co-develop and co-deliver solutions to provide high-value outcomes for end users.