Microsoft Cloud Solution Provider (CSP) - Simply Explained
Welcome to another episode of Knowledge Nuggets with Mirko Peters. Today we're exploring one of the most important programs in Microsoft's partner ecosystem: the Microsoft Cloud Solution Provider (CSP) program. If you've ever purchased Microsoft 365, Azure, Dynamics 365, or Microsoft Security services through a local IT provider, there's a very good chance you've already used the CSP program without even realizing it. While many organizations believe they are buying directly from Microsoft, in reality a trusted partner often manages the entire relationship—from licensing and billing to technical support and ongoing services. In this episode, we'll break down exactly how the CSP program works, why Microsoft relies so heavily on its partner network, and what the program means for customers, IT providers, and software partners. Whether you're evaluating licensing options for your own business or considering becoming a Microsoft partner yourself, understanding CSP helps explain how most organizations consume Microsoft cloud services today.
WHAT IS THE MICROSOFT CLOUD SOLUTION PROVIDER PROGRAM?
The Cloud Solution Provider program is Microsoft's commercial model that allows certified partners to sell, manage, and support Microsoft cloud services on behalf of Microsoft. Instead of purchasing Microsoft 365, Azure, Dynamics 365, or Enterprise Mobility and Security directly from Microsoft, many businesses purchase these services through a trusted partner who becomes their primary point of contact. A useful way to think about CSP is to imagine a wholesale distribution model. Microsoft develops and operates the cloud platforms, while CSP partners package those services together with consulting, deployment, migration, support, and managed services. Rather than simply acting as resellers, partners become long-term advisors responsible for helping customers successfully adopt Microsoft's cloud technologies. For customers, this means they often receive a single monthly invoice, one support contact, and ongoing technical guidance instead of having to manage multiple Microsoft portals and support channels themselves. In many cases, the relationship with the partner becomes far more important than the direct relationship with Microsoft because the partner handles nearly every aspect of the customer's cloud environment.
HOW THE CSP ECOSYSTEM WORKS
The CSP ecosystem is built around three key participants that each play a different role. Microsoft develops and operates the cloud services, including Microsoft 365, Azure, Dynamics 365, Microsoft Security, and many other cloud offerings. The CSP partner purchases access to these services, provisions customer subscriptions, manages licensing, provides support, and often delivers additional consulting or managed services. Finally, the customer consumes the technology without needing to interact directly with Microsoft for most day-to-day activities. This separation of responsibilities allows Microsoft to scale globally while enabling thousands of partners to build their own businesses around Microsoft's cloud platform. Instead of Microsoft supporting every individual organization directly, partners provide localized expertise, customer relationships, and industry-specific knowledge that Microsoft alone could never deliver at the same scale. For many businesses, this creates a much more personal experience. When employees need assistance, they contact a partner who already understands their infrastructure, licensing, and business requirements instead of opening a generic support case with Microsoft.
DIRECT-BILL VS. INDIRECT RESELLER
Although every CSP partner participates in the same overall program, there are two very different operating models. Direct-Bill partners purchase cloud services directly from Microsoft and are responsible for everything themselves, including billing platforms, customer support, infrastructure, and Microsoft relationship management. Becoming a Direct-Bill partner requires significant investment and experience, including substantial annual revenue, an established Microsoft partnership history, Microsoft support contracts, and Solutions Partner designations. Because of these demanding requirements, relatively few organizations operate as Direct-Bill CSP partners. Most organizations instead become Indirect Resellers. Rather than working directly with Microsoft, they partner with a distributor such as Pax8, Ingram Micro, or other authorized indirect providers. These distributors handle the complex Microsoft relationship while allowing resellers to focus on what they do best—serving customers. This model dramatically lowers the barrier to entry for smaller IT providers. Instead of investing millions into billing infrastructure and support operations, they can leverage their distributor's platform while concentrating on consulting, migrations, managed services, and customer success. As a result, the overwhelming majority of CSP partners operate under the indirect model.
WHERE CSP PARTNERS CREATE VALUE
One of the biggest misconceptions about CSP is that partners simply resell Microsoft licenses. In reality, licensing is usually only a small part of the overall customer relationship. Most partners differentiate themselves by delivering services that surround the Microsoft subscription. These may include tenant setup, identity management, Microsoft Entra configuration, device enrollment with Microsoft Intune, security baselines, Microsoft Defender deployment, user adoption workshops, migration projects, help desk services, monitoring, backup, compliance consulting, and ongoing managed IT support. Interestingly, the licensing margin itself is relatively modest. The real business opportunity comes from the additional expertise and services partners provide after the licenses have been sold. Customers are rarely paying more simply for a Microsoft subscription—they're investing in an ongoing relationship with experts who understand their environment and can help them maximize the value of Microsoft's cloud platform. This approach creates recurring revenue for partners while giving customers access to experienced professionals who continuously optimize and secure their Microsoft environment.
UNDERSTANDING THE NEW COMMERCE EXPERIENCE (NCE)
One of the biggest changes to the CSP program arrived with Microsoft's New Commerce Experience (NCE), which fundamentally changed how cloud subscriptions are purchased and managed. Before NCE, organizations enjoyed considerable flexibility. Licenses could often be added or removed with minimal restrictions, making it easy to respond to changing business requirements. Under the New Commerce Experience, customers now select subscription terms that typically span one month, one year, or even three years, with pricing varying depending on the level of commitment. Monthly subscriptions provide the greatest flexibility but generally carry a higher price. Annual commitments reduce costs while requiring organizations to plan their licensing more carefully. Three-year commitments offer additional savings but significantly reduce flexibility because subscriptions cannot simply be adjusted whenever staffing levels change. Another important aspect of NCE is the limited cancellation period. After a subscription has been ordered, organizations only have a short window to make changes before the commitment becomes binding. This means businesses should carefully forecast their licensing requirements before placing large orders, particularly if workforce numbers are expected to fluctuate during the subscription term.
WHY ORGANIZATIONS CHOOSE CSP
For many organizations, especially small and medium-sized businesses, the biggest advantage of CSP is simplicity. Rather than managing Microsoft licensing independently, customers gain access to an experienced technology partner who handles purchasing, provisioning, billing, support, and ongoing optimization. Instead of juggling multiple invoices or trying to navigate Microsoft's licensing programs themselves, organizations receive one consolidated experience designed around their business needs. Many CSP partners also become strategic advisors rather than simple resellers. They recommend security improvements, assist with Microsoft 365 adoption, deploy Azure workloads, implement Microsoft Intune, and continuously monitor customers' cloud environments. This allows businesses without large internal IT departments to benefit from enterprise-grade expertise without building those capabilities internally. For larger organizations, Enterprise Agreements may still provide financial advantages under specific circumstances. However, Microsoft has gradually shifted much of its commercial focus toward CSP and the New Commerce Experience, making CSP the default purchasing model for many modern organizations entering the Microsoft ecosystem today.
THE RESPONSIBILITIES OF A CSP PARTNER
Becoming a CSP partner involves far more than selling licenses. Partners are responsible for first-line customer support, ongoing technical guidance, secure tenant management, and maintaining Microsoft's required security standards. They must implement strong identity protection, multi-factor authentication, secure operational practices, and comply with Microsoft's Partner Center security requirements. Microsoft has also continued raising the expectations placed on partners by introducing new support models, partner designations, and security requirements. This reflects Microsoft's broader strategy of ensuring that partners deliver measurable value rather than acting purely as licensing intermediaries.
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Microsoft sells its cloud services directly to customers
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and it also sells them through a huge network of partners.
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Both of those statements are true and here's why that matters.
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Today we're talking about the CloudSolution Provider Program,
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CSP for short.
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It's the engine behind how hundreds of thousands of businesses
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buy their Microsoft services.
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By the end of this episode,
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you'll know exactly what CSP is,
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how the money actually flows,
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and whether it matters for your company.
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Let's start with the simplest version.
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What is CSP?
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The core model, partners as wholesalers.
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CSP is Microsoft's program that lets partners resale cloud services.
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That means Microsoft 365 Azure Dynamics 365
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and enterprise mobility and security.
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Think of it like a wholesale club.
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Microsoft is the manufacturer.
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They sell their cloud services at bulk prices to partners.
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Those partners buy at wholesale,
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add their own services on top
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and sell the whole package to customers.
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You have three players in the system.
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Microsoft builds the cloud services.
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The CSP partner buys them and manages the relationship
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and the end customer just wants their email, files,
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and meetings to work.
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Here's the thing most people miss.
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When you buy through a CSP partner,
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Microsoft is not your billing contact.
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The partner handles billing, support, and provisioning.
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20 years ago, if your email server went down,
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you called Microsoft or fixed it yourself.
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Today, you call your partner.
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They own the relationship.
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Let me give you an example.
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Say you run a 50 person company.
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You buy Microsoft 365 through a local IT partner.
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That partner manages your licenses,
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sends you one invoice every month
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and provides support when someone can't log in.
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You never talk to Microsoft directly.
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You talk to your partner.
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What does this mean for you?
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If you're buying Microsoft cloud services
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through someone right now, you're likely already using CSP.
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You just didn't know it had a name.
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Now, not all CSP partners are the same.
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There are two different flavors
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and the one you pick matters.
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Direct versus indirect reseller.
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So there are two paths for partners in the CSP program.
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Direct Bill and indirect reseller.
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They sound similar, but they're actually very different.
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Direct Bill partners buy directly from Microsoft
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and handle everything themselves,
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billing, support, infrastructure.
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It's the hard path.
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The requirements are steep.
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You need at least $1 million in trailing 12 month revenue,
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12 months of prior experience as an indirect reseller,
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a solutions partner designation,
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and a paid Microsoft support plan.
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In the entire United States, only about 30 partners are direct bill.
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The other path is indirect reseller
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and that's the most common way to become a CSP partner.
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Instead of buying directly from Microsoft,
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you work through a distributor.
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Companies like Ingram Micro, Pax 8 or Rype.
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The distributor handles the Microsoft relationship,
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the billing platform and tier two support,
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while the reseller focuses on the customer.
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Picture it like a car dealership.
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Microsoft is the manufacturer.
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The distributor is the regional warehouse that stalks the parts
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and the reseller is the dealership you walk into
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when you want to buy a car.
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You don't talk to the factory.
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You talk to the dealer and the dealer gets their inventory
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from the warehouse.
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More than 90% of CSP partners are indirect resellers.
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That's the vast majority.
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And there's a reason for that.
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The indirect model has low barriers to entry,
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no revenue minimum, no support plan required.
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The distributor provides the backstop.
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This makes it easy for small IT shops
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to start reselling Microsoft services
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without a huge upfront investment.
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So what does this mean for you?
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If you're a small partner wanting to resell Microsoft,
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indirect is the path.
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That's how almost everyone starts.
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You focus on your customers and the distributor handles the rest.
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How partners add value.
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Now you know the two parts the partner can take,
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but here's the real question,
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how do these partners actually make money?
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And what do they bring to the table
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that you can't get by buying direct from Microsoft?
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The short answer is that partners don't just resell licenses.
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They bundle services on top.
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Think of it like buying a phone.
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You can buy the phone itself for a certain price.
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Or you can buy the phone with a case,
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a screen protector and a warranty.
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The phone is the license.
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Everything else is the value add.
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Typical partner offerings include onboarding help,
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migration from your old system,
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training for your team around the clock support
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and security monitoring.
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Some partners will even manage your entire IT environment.
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They become your IT department.
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Now here's the thing about the money.
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The margin on the license itself is small.
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We're talking about eight to 15%
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depending on incentives and volume.
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That's not nothing, but it's not where the real profit lives.
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The real profit is in the managed services
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wrapped around that license.
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Let me give you a concrete example.
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Say a partner sells Microsoft 365 Business Premium
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for $22 per user per month.
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You can buy that same license directly from Microsoft
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for $22, same price.
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But the partner adds identity setup, device management
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and a help desk for an extra $8 per user per month.
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Now the customer is paying $30 total
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and they get one bill, one support number
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and someone who actually knows their business.
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The partner earns the margin on the service layer,
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not the software.
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That's the model.
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The license gets you in the door.
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The services keep you there.
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Now here's where CSP gets a little tricky.
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The newcomers experience changed the rules.
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The newcomers experience, term commitments.
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In 2022, Microsoft launched something
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they call the newcomers experience or NCE for short.
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And it completely changed how CSP subscriptions work.
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Before NCE, the process was straightforward.
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You bought monthly subscriptions, canceled whenever you wanted
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and adjusted seats freely.
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Higher five people, add five licenses, let two go,
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remove two without penalties or commitments.
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It was flexible, almost two flexible.
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After NCE, everything shifted.
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Now you have term commitments.
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You pick between a one month, one year or three year term
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and each choice carries a different price tag.
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The monthly term gives you the most flexibility
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since you can cancel at the end of any month,
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but you pay a 20% premium over the annual list price.
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So if the annual price is $100 per user per month,
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the monthly price hits $120.
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That's the cost of flexibility.
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The annual term is the standard choice.
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You can pay monthly with a 5% premium
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or pay upfront at list price.
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Most businesses go with the annual term paid monthly
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because it sits right between cost and flexibility.
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Then there's the triennial term
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which locks in your price for three years
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and saves you about 12 to 18% compared to renewing annually.
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But you are locked in.
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No changes for three years.
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Here's the part that catches people off guard.
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After you place an order,
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you have a seven day cancellation window,
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just seven days to change your mind or adjust quantities.
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After that, the commitment is binding
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and seed reductions are not allowed midterm.
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You can only add seeds, never remove them.
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Microsoft did this for predictable revenue.
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They wanted to see their recurring revenue
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laid out months and years ahead.
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Partners hated because customers changed their minds.
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A company might plan for 100 seats in January
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and then need 80 by March, but under NCE,
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they are still paying for those 20 unused seeds
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until the term ends.
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The practical impact is simple.
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Plan your headcount carefully before buying.
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If you are unsure, it is safer to over buy slightly
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than to under buy.
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You can always add seeds, but you cannot remove them.
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One more thing.
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The old grace period which ended in May, 2026
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has been replaced by something called the extended term.
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If your subscription expires and you do not act,
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it automatically moves to the extended term,
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build at the monthly rate,
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plus an additional 3% uplift.
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It is designed as a short term bridge,
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not a long term solution.
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Let it sit too long and your costs climb fast.
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Why customers choose a CSP partner?
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So what does all this mean for a business
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buying Microsoft services?
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Let's look at it from the customer side.
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The biggest reason customers choose a CSP partner
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is consolidated billing.
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One invoice covers all your Microsoft services
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plus anything the partner adds on top.
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00:06:59,240 --> 00:07:01,160
You don't have to log into Microsoft's portal,
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00:07:01,160 --> 00:07:02,720
figure out which subscription is which
210
00:07:02,720 --> 00:07:04,200
or reconcile multiple invoices
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00:07:04,200 --> 00:07:06,080
because it all comes from one place.
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Your partner.
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00:07:06,920 --> 00:07:08,360
Next support is included.
214
00:07:08,360 --> 00:07:10,240
When you buy through a CSP partner,
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00:07:10,240 --> 00:07:12,480
that partner becomes your first line of support.
216
00:07:12,480 --> 00:07:14,640
So you don't need a separate unified support contract
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from Microsoft.
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00:07:15,640 --> 00:07:17,600
Your partner handles day to day issues,
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00:07:17,600 --> 00:07:19,000
meaning if something breaks,
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00:07:19,000 --> 00:07:20,720
you call them instead of Microsoft.
221
00:07:20,720 --> 00:07:23,200
For a small business without a dedicated IT team,
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00:07:23,200 --> 00:07:24,320
that is a huge deal.
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00:07:24,320 --> 00:07:25,640
Then there's flexibility.
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00:07:25,640 --> 00:07:27,920
Yes, the monthly term costs a 20% premium
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00:07:27,920 --> 00:07:30,120
but for some businesses that premium is worth it.
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Think about a landscaping company
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00:07:31,720 --> 00:07:34,800
with 80 employees in the summer and 30 in the winter.
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00:07:34,800 --> 00:07:36,880
Under the old rules, they could scale down easily.
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00:07:36,880 --> 00:07:39,360
Under NCE, they cannot reduce seeds midterm
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but they can choose the monthly term
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00:07:40,800 --> 00:07:43,120
and pay the premium for the right to adjust.
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00:07:43,120 --> 00:07:45,760
For seasonal workforces, that trade off makes sense.
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00:07:45,760 --> 00:07:48,760
Beyond licenses, many partners offer value at services.
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They set up security baselines to lock down your tenant,
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00:07:51,200 --> 00:07:53,000
backup your data, provide training
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00:07:53,000 --> 00:07:54,640
when your team moves to new tools
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00:07:54,640 --> 00:07:55,920
and help with adoption,
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00:07:55,920 --> 00:07:58,240
so you actually use what you are paying for.
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00:07:58,240 --> 00:07:59,280
Here is a rule of thumb.
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If you are under 500 employees,
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CSP is probably the right path.
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00:08:02,600 --> 00:08:03,640
If you are larger,
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an enterprise agreement might be cheaper.
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00:08:05,720 --> 00:08:08,640
EA pricing typically comes in 20% to 35% lower
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00:08:08,640 --> 00:08:11,760
per seat for organizations with 500 or more users
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00:08:11,760 --> 00:08:13,840
because Microsoft negotiates volume discounts
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directly with large customers.
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00:08:15,560 --> 00:08:17,280
But those discounts come with a catch.
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You are committing to a multi-year term
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so you cannot walk away.
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00:08:20,040 --> 00:08:21,440
One more thing to keep in mind.
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CSP does not include software assurance
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which is Microsoft's program for on-premises upgrade rights.
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If you have a hybrid setup where some stuff is in the cloud
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and some is on your own servers,
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software assurance matters.
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In that case, an enterprise agreement might serve you better.
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The tradeoff is simple.
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CSP for flexibility and support, EA for the lowest price at scale.
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CSP versus enterprise agreement went to use which.
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00:08:43,520 --> 00:08:45,080
So that leads to the big question,
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when should you go with CSP instead of an enterprise agreement?
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00:08:48,280 --> 00:08:50,240
Enterprise agreements are meant for organizations
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with 500 or more users,
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especially when your head count is predictable
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and you're willing to commit to a multi-year deal.
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You get volume discounts, software assurance
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and a direct relationship with Microsoft.
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00:09:00,280 --> 00:09:03,000
But you also get complexity, true up cycles,
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enrollment periods and plenty of fine print.
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CSP is built for a different kind of customer.
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00:09:08,000 --> 00:09:10,360
Small and medium businesses spending under a million dollars
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00:09:10,360 --> 00:09:12,000
a year on Microsoft services,
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00:09:12,000 --> 00:09:13,760
companies with fluctuating head count
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00:09:13,760 --> 00:09:15,840
or organizations that want to partner to lead the way
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00:09:15,840 --> 00:09:17,920
instead of figuring it out themselves.
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00:09:17,920 --> 00:09:20,080
Here's something that makes this decision easier.
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00:09:20,080 --> 00:09:23,040
Microsoft has been shutting down older licensing programs.
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00:09:23,040 --> 00:09:25,080
The Microsoft products and services agreement,
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00:09:25,080 --> 00:09:28,760
or MPSA, close to new business in mid 2025
281
00:09:28,760 --> 00:09:32,520
and new enterprise agreement enrollment stopped in October 2024.
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00:09:32,520 --> 00:09:33,880
You can still renew an existing EA,
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00:09:33,880 --> 00:09:35,080
but you can't start a new one.
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00:09:35,080 --> 00:09:37,400
For most businesses, the choice is already made.
285
00:09:37,400 --> 00:09:39,880
CSP under the newcomers experience is the default.
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00:09:39,880 --> 00:09:41,360
Now, I want to be clear about something.
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00:09:41,360 --> 00:09:42,800
CSP is not a discount program.
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00:09:42,800 --> 00:09:44,200
It's a service delivery program.
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00:09:44,200 --> 00:09:45,880
The discount doesn't come from Microsoft.
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00:09:45,880 --> 00:09:47,680
It comes from the partner's service.
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00:09:47,680 --> 00:09:48,920
A good partner saves you money
292
00:09:48,920 --> 00:09:50,440
by reducing your IT headache,
293
00:09:50,440 --> 00:09:52,320
not by selling you a cheaper license.
294
00:09:52,320 --> 00:09:53,880
Think of it like buying a car.
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00:09:53,880 --> 00:09:55,480
You can buy direct from the factory
296
00:09:55,480 --> 00:09:56,800
and save a few thousand dollars,
297
00:09:56,800 --> 00:09:58,480
but the dealership offers test drives,
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00:09:58,480 --> 00:10:01,840
helps with financing and fixes it when something breaks.
299
00:10:01,840 --> 00:10:03,280
You're paying for convenience and support,
300
00:10:03,280 --> 00:10:04,480
not just the metal and rubber.
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00:10:04,480 --> 00:10:06,920
What this means for you is pretty straightforward.
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00:10:06,920 --> 00:10:10,040
Under 300 seats, CSP is almost certainly your best bet.
303
00:10:10,040 --> 00:10:12,440
Over 500 run the numbers on an enterprise agreement
304
00:10:12,440 --> 00:10:13,440
before you decide.
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00:10:13,440 --> 00:10:14,280
If you're in between,
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00:10:14,280 --> 00:10:16,400
it depends on how stable your head count is
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00:10:16,400 --> 00:10:19,320
and how much you value having a partner in your corner.
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00:10:19,320 --> 00:10:21,920
The partner reality, requirements and support.
309
00:10:21,920 --> 00:10:23,920
So being a CSP partner sounds great so far,
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00:10:23,920 --> 00:10:24,760
but it's not free.
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00:10:24,760 --> 00:10:26,320
Microsoft has been raising the bar,
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00:10:26,320 --> 00:10:28,080
especially for direct bill partners
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00:10:28,080 --> 00:10:29,560
and the requirements are real.
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00:10:29,560 --> 00:10:30,680
Let's start with direct bill.
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00:10:30,680 --> 00:10:32,400
If you want to buy directly from Microsoft
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00:10:32,400 --> 00:10:33,840
and manage everything yourself,
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00:10:33,840 --> 00:10:35,720
you need to meet some serious thresholds.
318
00:10:35,720 --> 00:10:38,560
One million dollars in trailing 12 months revenue,
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00:10:38,560 --> 00:10:41,720
at least 12 months of experience as an indirect reseller first,
320
00:10:41,720 --> 00:10:44,000
at least one solutions partner designation,
321
00:10:44,000 --> 00:10:47,360
and you have to purchase a paid Microsoft support plan.
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00:10:47,360 --> 00:10:50,480
Advanced support for partners runs about $15,000 a year,
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00:10:50,480 --> 00:10:51,680
and that's the minimum.
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00:10:51,680 --> 00:10:53,640
Now compare that to the indirect reseller path.
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00:10:53,640 --> 00:10:55,880
No revenue minimum, no support plan required,
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00:10:55,880 --> 00:10:57,680
the distributor provides the backstop.
327
00:10:57,680 --> 00:10:59,600
You sign up, partner with the distributor,
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00:10:59,600 --> 00:11:00,880
and you're in business.
329
00:11:00,880 --> 00:11:03,640
That's why the vast majority of partners choose this route.
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00:11:03,640 --> 00:11:05,760
Here's something that surprises a lot of people.
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00:11:05,760 --> 00:11:07,640
All CSP partners are required to provide
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00:11:07,640 --> 00:11:09,160
first line support to their customers.
333
00:11:09,160 --> 00:11:11,600
You cannot escalate most issues to Microsoft.
334
00:11:11,600 --> 00:11:14,080
If a customer calls with a problem, you own it,
335
00:11:14,080 --> 00:11:17,120
you diagnose it, you fix it, or find someone who can.
336
00:11:17,120 --> 00:11:19,680
The customers first call is always to you, not to Microsoft.
337
00:11:19,680 --> 00:11:21,000
The support landscape is shifting too.
338
00:11:21,000 --> 00:11:24,440
Microsoft's legacy support plans for partners are being retired.
339
00:11:24,440 --> 00:11:26,840
Advanced support for partners, or ASFP,
340
00:11:26,840 --> 00:11:28,760
ends in January 2027,
341
00:11:28,760 --> 00:11:31,160
and premier support for partners follows shortly after.
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00:11:31,160 --> 00:11:33,320
The replacement is called unified for partners,
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00:11:33,320 --> 00:11:34,560
or UFP for short,
344
00:11:34,560 --> 00:11:37,720
and it's expected to launch in Microsoft's fiscal year 2027.
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00:11:37,720 --> 00:11:39,280
Here's the opportunity in that change.
346
00:11:39,280 --> 00:11:41,280
Partners who earn the support services designation
347
00:11:41,280 --> 00:11:44,000
can get up to 50% off on unified for partners.
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00:11:44,000 --> 00:11:45,600
That's a significant discount.
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00:11:45,600 --> 00:11:47,240
Microsoft is essentially saying,
350
00:11:47,240 --> 00:11:49,000
show us your serious about support
351
00:11:49,000 --> 00:11:50,560
and will make it affordable for you.
352
00:11:50,560 --> 00:11:52,240
There are also security requirements.
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00:11:52,240 --> 00:11:55,640
All CSP partners must meet the partner center security score,
354
00:11:55,640 --> 00:11:57,520
which means multi-factor authentication,
355
00:11:57,520 --> 00:11:59,160
secure application model,
356
00:11:59,160 --> 00:12:00,720
and basic security hygiene.
357
00:12:00,720 --> 00:12:01,920
Microsoft checks this,
358
00:12:01,920 --> 00:12:03,040
and if you fall short,
359
00:12:03,040 --> 00:12:04,720
you can lose your ability to transact.
360
00:12:04,720 --> 00:12:06,480
The message from Microsoft is clear.
361
00:12:06,480 --> 00:12:09,080
Being a CSP partner is about delivering value,
362
00:12:09,080 --> 00:12:10,680
not just passing through licenses,
363
00:12:10,680 --> 00:12:13,000
the days of buying a block of seats and marking them up,
364
00:12:13,000 --> 00:12:14,120
are fading.
365
00:12:14,120 --> 00:12:15,840
If you're not providing real service,
366
00:12:15,840 --> 00:12:17,800
you're not really a CSP partner.
367
00:12:17,800 --> 00:12:19,920
The big picture, why CSP matters?
368
00:12:19,920 --> 00:12:21,240
So let's zoom out for a second.
369
00:12:21,240 --> 00:12:23,680
CSP delivers most Microsoft cloud transactions
370
00:12:23,680 --> 00:12:25,240
for small and medium businesses.
371
00:12:25,240 --> 00:12:26,480
It's not a discount program.
372
00:12:26,480 --> 00:12:27,720
It's a partnership model.
373
00:12:27,720 --> 00:12:30,360
Microsoft hands the customer relationship to partners,
374
00:12:30,360 --> 00:12:32,880
and that trust is what makes the whole thing work.
375
00:12:32,880 --> 00:12:34,160
Three layers to think about.
376
00:12:34,160 --> 00:12:35,840
Microsoft builds the services.
377
00:12:35,840 --> 00:12:38,800
Partners wrap those services with support and expertise.
378
00:12:38,800 --> 00:12:40,960
Customers get one bill and one point of contact,
379
00:12:40,960 --> 00:12:43,440
one person to hold accountable when something breaks.
380
00:12:43,440 --> 00:12:45,320
But here's where the real power lives.
381
00:12:45,320 --> 00:12:46,440
Connection.
382
00:12:46,440 --> 00:12:48,920
The partner who sets up your Microsoft 365 tenant
383
00:12:48,920 --> 00:12:51,280
can also deploy in-tune to manage devices.
384
00:12:51,280 --> 00:12:53,560
They can configure defender to block threats.
385
00:12:53,560 --> 00:12:56,160
They can help your team actually use teams
386
00:12:56,160 --> 00:12:58,640
instead of just installing it and forgetting about it.
387
00:12:58,640 --> 00:13:00,080
You end up with a cohesive setup
388
00:13:00,080 --> 00:13:02,520
instead of random tools that don't talk to each other.
389
00:13:02,520 --> 00:13:04,080
Think of it like an office building.
390
00:13:04,080 --> 00:13:07,680
Microsoft built the building, the walls, the wiring, the plumbing.
391
00:13:07,680 --> 00:13:09,760
The CSP partner runs the front desk.
392
00:13:09,760 --> 00:13:10,760
They handle the maintenance.
393
00:13:10,760 --> 00:13:12,120
They manage their IT closet.
394
00:13:12,120 --> 00:13:15,800
Everything works together so you can just show up and do your job.
395
00:13:15,800 --> 00:13:17,400
For customers, here's the good news.
396
00:13:17,400 --> 00:13:18,880
You don't need to be a licensing expert.
397
00:13:18,880 --> 00:13:21,840
You don't have to know the difference between E3 and E5
398
00:13:21,840 --> 00:13:23,600
or what software assurance covers
399
00:13:23,600 --> 00:13:25,320
or how true upcycles work.
400
00:13:25,320 --> 00:13:26,960
Your partner handles that complexity.
401
00:13:26,960 --> 00:13:28,320
You just tell them what you need.
402
00:13:28,320 --> 00:13:30,000
For partners, the benefits are real.
403
00:13:30,000 --> 00:13:32,840
Recurring revenue that smooths out the business cycle,
404
00:13:32,840 --> 00:13:35,280
deeper relationships that make you essential.
405
00:13:35,280 --> 00:13:36,640
Growing demand from businesses
406
00:13:36,640 --> 00:13:39,520
who'd rather not manage IT themselves, the bottom line is this.
407
00:13:39,520 --> 00:13:42,960
CSP is how most businesses will consume Microsoft Cloud
408
00:13:42,960 --> 00:13:43,760
going forward.
409
00:13:43,760 --> 00:13:45,120
The old programs are closing.
410
00:13:45,120 --> 00:13:46,400
New ones have arrived.
411
00:13:46,400 --> 00:13:48,920
And the partner sits right at the center.
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00:13:48,920 --> 00:13:50,360
Here's what I want you to remember.
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CSP is Microsoft's way of letting partners handle the messy parts,
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00:13:54,000 --> 00:13:55,760
billing, support, and service.
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00:13:55,760 --> 00:13:58,760
So customers can focus on running their business.
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00:13:58,760 --> 00:14:00,800
If you're buying Microsoft services today,
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check who your partner of record is.
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If you don't have one, now you know why that matters.
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