In the last few years, Microsoft has been slowly but surely phasing out one of its oldest and most successful partner programs. If you're an IT service provider selling Microsoft cloud solutions, you're probably aware of the changes to the Online Services Advisor (OSA) program. Partners have been encouraged to move to the Microsoft CSP (Cloud Solution Provider) program. To say the implications are huge is putting it mildly. Last year (October 1, 2016), Microsoft announced the termination of recurring incentives for OSA partners. Starting July 2017, Microsoft Advisors will no longer earn commissions for reselling cloud products such as Office 365 and Azure. Moreover, you will no longer earn commission for the subscriptions you currently manage for your customers.
The changes apply to the tens of thousands global partners signed on as resellers under the Online Services Advisor program. Under this program, Microsoft partners would earn a percentage of subscription fees on packages sold. They would even receive frontline help from Microsoft’s crack support staff. OSA gave IT service providers a hassle-free way to tap into the cloud, but something even more promising is ready to stand in its place.
Moving From Microsoft Advisors to Cloud Providers
Microsoft partners were encouraged to make the jump to the Cloud Solution Provider (CSP) initiative introduced back in 2014. CSP provides the opportunity to sell various Microsoft cloud solutions alongside your existing products and services. This program is a significant upgrade over OSA. Here's why: Better profit margins: With OSA commissions practically being chipped down to nothing, the ability to generate revenue is the biggest draw to signing on with CSP. Microsoft has increased CSP commissions on Office 365 subscriptions. It has also created additional revenue opportunities by offering back end commissions through select partners and further incentives in promotions geared to drive partners over to CSP. Competitive advantage: CSP gives IT firms an opportunity to leverage the cloud and take business to the next level. Resellers can bundle Azure, Dynamics CRM, Office 365 and other standalone solutions with value-added services such as backup, security, and support. Crafting unique IT solutions tailored to the needs of your market enables you to stand out from the crowd. Simplified billing: Straightforward billing is something OSA partners and end users have been requesting for years. Microsoft finally delivered with CSP. The program puts the billing process in the hands of the reseller, who now sends their customer a single invoice. This final reason weighed in heavily on the change from Microsoft. Customers prefer to purchase cloud services from a single source, rather than deal with the cost and complexity of managing relationships with different vendors.
Making the Move to Microsoft CSP
There are some important factors to consider, before becoming a Microsoft Cloud Solution Provider (CSP).What You Need to Know
Microsoft's CPS program offers two opportunities for partners. First is the direct partner. As the name suggests, these resellers work directly with Microsoft itself. Direct partners receive all the training, tools and support needed to stand on their own as a cloud service provider. However, in order to take advantages of this opportunity, partners must meet the following criteria:- An existing IT solutions business model
- Resources to customize pricing structures and manage customer billing
- Infrastructure to provide dedicated customer support
- Ability to scale to business demands