{"id":10123,"date":"2025-07-02T12:22:00","date_gmt":"2025-07-02T16:22:00","guid":{"rendered":"http:\/\/www.sherweb.com\/blog\/?p=10123"},"modified":"2025-09-06T01:27:55","modified_gmt":"2025-09-06T05:27:55","slug":"switch-from-direct-to-indirect-csp","status":"publish","type":"post","link":"https:\/\/r-swca2-app15-sherwebbl-change-font-czgcf8cmcjh3asb3.canadacentral-01.azurewebsites.net\/blog\/sherweb-perspectives\/partner-program-perspectives\/switch-from-direct-to-indirect-csp\/","title":{"rendered":"What direct CSPs need to know before choosing an indirect provider"},"content":{"rendered":"

In the second installment of our CSP transition series (click here for part 1<\/a>), Alexandre Laflamme<\/a>, Partner Programs and Sales Incentives Manager, breaks down what direct CSPs need to know before choosing an indirect provider. Learn how the right decision can protect your margins, simplify compliance, and help your business grow long after Microsoft\u2019s changes take effect.<\/em><\/p>\n

When Microsoft announced its updated requirements for the direct Cloud Solution Provider (CSP) program, many partners found themselves navigating unfamiliar territory. With a $1 million annual revenue threshold, 24\/7 support obligations and mounting compliance costs, the direct model has become increasingly difficult to sustain, especially for those focused on growth rather than administrative overhead.<\/p>\n

This shift isn’t just a policy change; it signals a broader evolution in Microsoft\u2019s expectations for its partners. The challenge now is less about choosing a model and more about aligning with a partner who can help you operate at scale without compromising efficiency.<\/p>\n

You\u2019ve already built a functioning Microsoft<\/a> practice. You understand your clients, manage your margins and provide value far beyond licensing. But the operational demands of remaining direct have changed the equation. Instead of offering autonomy, the direct model is now asking more than many partners can\u2014or should\u2014handle alone. And if you’re one of the partners navigating this shift, it\u2019s okay to feel frustrated, uncertain or even a bit resistant. This isn\u2019t the transition you planned for, but it doesn\u2019t have to be a setback.<\/p>\n

For many, transitioning to the indirect model is the only viable path forward. But that transition comes with its own set of decisions. The most critical? Choosing a provider that doesn\u2019t just meet the basic requirements but actively supports your long-term growth and day-to-day execution.<\/p>\n

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The right CSP Distributor does more than preserve margin. It turns your Microsoft business into a growth engine.<\/a><\/h2>\n<\/blockquote>\n

What Microsoft\u2019s new direct CSP economics mean for your business<\/h2>\n

Microsoft won\u2019t tell partners outright to leave the Direct Bill model, but if you don\u2019t meet the new thresholds, staying direct simply won\u2019t be an option.<\/p>\n

Direct partners will soon need to:<\/p>\n