Microsoft’s Cloud Solution Provider (CSP) Program is a partner program that allows you to sell Microsoft cloud solutions with your own offerings and services, or with other services provided by the Stratos Cloud Alliance. As a Microsoft CSP, you own the entire customer relationship with direct billing, provisioning, management, and support. SCA provides the training, tools, and technology to enable any partner to succeed as a CSP.
Our Marketing Director, Dave Wallen, recently sat down with MS Dynamics World to discuss some of the latest changes to Microsoft’s 1-Tier Cloud Service Provider (CSP) requirements.
Under the current partnering model, only 1-Tier CSPs are able to directly sell Microsoft cloud solutions like Dynamics 365 to clients. Checkout our whitepaper “Demystifying Microsoft’s Cloud Service Provider Program for Dynamics Partners” to learn how CSP can enable partners to move to modern with minimal shock to their business.
New Requirements For 1-Tier Cloud Service Providers
- Beginning September 1 Direct CSPs must now buy one of two levels of support contracts with Microsoft: Starting at a $15K annual cost or $10K in emerging markets (Microsoft may soon institute revenue thresholds).
- A Premier Support Plan for Partners will cost $50,000 Per Yr.
- 1-Tier CSPs will have to provide a unique service offering through IP, managed services, or another type of application.
- Billing and provisioning infrastructure must be in place at the CSP to manage cloud customers
- Direct CSP’s must maintain a Silver or Gold Level Competency
- Silver Level Competency is 5 Individuals Passing 3 Different Certifications
- Gold Level Competency is 15 Individuals Passing 3 Different Certifications
- Secure and solid infrastructure for billing & provisioning
- Meet yearly seat requirements
“Microsoft wants partners who can make what they see as the right investments in the cloud business model to stay as Tier1/Direct CSPs,” Dave Wallen told MS Dynamics World in the recent article. “They are trying to give partners who do have scale to invest in Tier 1 the time they need. Partners can do it with good billing infrastructure and with investment in developing IP to be SaaS-ready. That’s not a huge investment for every firm, but Microsoft is raising the bar.”
It also looks like Microsoft will not add any new 1-Tier CSPs until August 2018.
We have seen many Dynamics channel changes in recent months as Microsoft continues its push to be at the forefront of digital transformation. Since the launch of the One Commercial Partner program last year, the channel has experienced the elimination of a separate Dynamics field organization, the early retirement of many long-time Dynamics leaders and the former Cloud/Platform leadership put in charge of the entire SMB space. The CSP program was designed to help usher the Partner Channel into this next phase of transformation. Learn more about Dynamics channel changes.
Microsoft has been committed to its cloud-first, mobile-first transformation for years and the recent rollout of the One Commercial Partner (OCP) Program enables the next phase of that transformation for Microsoft’s business solutions channel.
One Commercial Partner unifies Microsoft’s partner teams under a single program. OCP is solely dedicated to helping Partners sell Microsoft Azure, Office and Dynamics 365. Checkout our whitepaper “Demystifying Microsoft’s Cloud Service Provider Program for Dynamics Partners” to learn how CSP can enable partners to move to modern with minimal shock to their business.
Parnter Benefits from the CSP:
- Designed to help partners go to market in the cloud quickly with less risk and upfront investment
- Allows partners to become Microsoft cloud providers from anywhere in the world
- Provides ennoblement for newcomers to selling cloud products as well as cloud experts.
- Partners set their own prices and profit margins
- No restrictions regarding company size, location or competency levels.
With the resources of an Indirect CSP Partner like Stratos Cloud Alliance, businesses who rely on Dynamics to generate revenue and want to take advantage of the D365 and Azure opportunities can ramp up quickly, focus on their investment and digitally transform at a more controlled pace
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Why, What, How and Who of CSP: This white paper will examine what recent changes in the partner channel mean for resellers whose businesses rely on Dynamics ERP and CRM based revenue. What choices should you make? Who can you turn to for advice & enablement? How does the Cloud Service Provider program help you stay relevant through digital transformation?
• Why Microsoft is Driving Partners to CSP
• Fundamental Changes Resellers Need to Make to Adapt to the Model
• Programs to Help Resellers
• Introduction to the Stratos Cloud Alliance
Of course, the high cost of entry and strain on resources to build a Dynamics 365 practice from scratch would create a reorganization upheaval for many traditional Dynamics solution and services providers. Microsoft recognizes this challenge and has partnered with the Stratos Cloud Alliance, an exclusive Indirect Cloud Service Provider, to guide resellers, MSPs and ISVs as they build their Dynamics 365 practice. SCA provides enablement resources to help partners start selling quickly and stay profitable in the D365 space.