The Microsoft CSP Program

In order to be successful in a Cloud first, Mobile first world, Microsoft and her partners needed not just other solutions and marketing policies, but also modernized licensing policies.

That’s why Microsoft came up with the so called Cloud Solution Provider program – in short CSP. This program helps Microsoft partner become their customers’ trusted advisors. By using CSP, partners are able to own and manage the end-to-end relationship with their customers.

Dynamics strategy officer Jeff Edwards named CSP “The license model of the future”. It’s also important for all of us to realize that CSP is a partner led model. As a matter of fact, Microsoft did some experiments with direct sales. This experiment was based on BPOS, the precursor of Office 365. However, the results of this try-out was that direct deals led to financial loss and poor customer satisfaction scores. For Microsoft another confirmation that the indirect model with partners is the best model for the company!

The main challenge for Microsoft cloud partners is to combine, package, sell, deliver and support all the value of the Microsoft stack into attractive and repeatable all-in solutions for the customers in their targeted markets. CSP heavily supports that process.

Microsoft works with two versions of CSP, called Tier 1 for the direct channel and Tier 2 for the indirect channel. This is shown in the slide below.

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Dynamics partner have to choose at least one of the two models. For AX partners Tier 1 even roughly is the only recommended approach. Or partners can take both models.

Partners who select the indirect channel need to find themselves an Indirect Provider that can support them in their daily business. All the big international Microsoft distributors (“disti’s”) are offering indirect CSP to partners today. However, for Dynamics partners it’s pretty important to also look at the knowledge that these providers have from the Dynamics processes and products.

More and more Microsoft cloud solutions can only be sold through the CSP model. Dynamics 365 for example will not become part of the Dynamics pricelist, but will only be available via CSP. An extra reason for all Dynamics partners to learn more from CSP, make a choice and sign up!

Want to resell Microsoft Cloud solutions via a Indirect CSP? As a Microsoft Reseller you can start here