You’ve probably heard of Microsoft Cloud Solution Provider (CSP) program here and then. But what does Microsoft CSP mean? How does it work, and for whom is it?
This is the perfect guide for you if you’d like to learn about this program.
Let’s dive right in!
Reading time 9 minutes Published: 17 January 2025
The CSP (Cloud Solution Provider) program is Microsoft’s billing method for modern businesses that allows Microsoft’s partners to re-sell Microsoft cloud services. This subscription-based model does not require pre-committing and allows you to pay for what you use per month. You can increase or decrease your consumption without hassle, depending on your needs.
Thus, it’s the perfect billing method for modern-day businesses that need flexibility and scalability when purchasing cloud services and managing software licensing.
CSP puts partners at the heart of the customer relationship, enabling them to procure and manage Microsoft’s cloud services while adding unique value through their offerings, such as managed services.
The products and services you can get are as follows:
Even though the name Cloud Solution Provider reveals it’s for the cloud, this doesn’t mean a cloud solution provider cannot help you during your migration to the cloud.
In a Microsoft Cloud Solution Provider (CSP) agreement, a partner like Intercept is the single point of contact. They handle key aspects such as:
They can also implement and manage customer subscriptions directly. Since the program is partner-led, your partner sets the price and terms. They set up the licences and offer various payment terms, including monthly billing and custom solutions to fit your needs.
Microsoft’s partners operate under a Microsoft-defined Service Level Agreement (SLA), so they ensure that service availability, response times, and support meet Microsoft standards. When you select the right partner, they can help you get the most out of Azure.
Watch the video below to learn more about the Microsoft Cloud Solution Provider program:
In the Microsoft Cloud Solution Provider programme, we can find two models or so-called “tiers”:
The indirect model is a two-tier selling approach through indirect providers and resellers. Direct providers do the billing, customer service, and technical support during the sales cycle and after the deal closes. They handle many back-end processes, so the indirect reseller can focus on finding and closing deals.
Indirect providers are usually large, well-established companies. Indirect resellers are accountable and focused on creating new business by finding customers and selling, while indirect providers handle the rest. Indirect resellers must hold Microsoft Partner status, but requirements are less strict than for direct partners.
On the other hand, a direct provider buys and sells Microsoft products and subscriptions directly from Microsoft to their clients through their own sales staff. They can provide you with:
CSP Direct partners design, implement, migrate, and manage cloud solutions. As a result, they often have more knowledge and expertise. But your final choice for one or the other always depends on your use case.
Before Microsoft CSP entered the scene, and we’re talking about two decades ago, Microsoft offered another model: the Microsoft Open Licence Program.
While designed as a volume-based model, the program catered to small and medium-sized enterprises (SMEs) seeking their hands-on perpetual licences. However, with the global increase of online services and cloud computing over the years, Microsoft’s limitations of the Open License Program became apparent during the digital transformation. It lacked the flexibility and scalability needed for modern IT infrastructures. Also, customers back then needed more agile models with more simplicity and partners for their cloud solutions.
Fast-forward to today. Microsoft’s Open Licence program is no longer. On January 1st, 2022, Microsoft retired its old program. As of today, CSP sets the stage for purchases through partners.
Microsoft introduced the Cloud Solution Provider (CSP) program in 2015. This program enables businesses to become cloud solution providers by offering comprehensive cloud services without heavy infrastructure investments. It allows modern IT enterprises more flexibility and scalability.
The CSP program was designed to create a cloud-first world for customers of different sizes and types, thus differentiating from traditional programs like EA (often transactional and built for on-premise technology).
CSP is gaining traction while becoming the go-to option for many modern businesses, and for good reason.
Let’s break down the benefits of the flexible program:
As a business, you can scale your usage and costs to actual consumption, also known as “pay for what you use”. You have full control over which cloud services to buy and how many to use. You can turn services on and off on days without issues. Scaling up or down is quick and easy, so you can respond to changing customer demand.
With EA, you lock yourself into a risky pre-commit model, as you need to exactly “predict” your upcoming spending, which is often very challenging. In contrast, the CSP gives much more flexibility. Contracts are without heavy upfront commitments. Just like many other subscription-based programs, you can leave CSP contracts after every month. Read more about EA vs CSP and find out which billing method suits your organisation.
Customers can access Microsoft services and products along with value-added services from a partner at a lower price (at Intercept you can benefit from discounts). The program includes Azure incentives based on an enterprise’s monthly consumption (the more you spend, the more discount you can get).
The CSP Enterprise Programme is for those with high Azure spending. Get a 12% discount, 24/7 support, and better cloud spending control. (The larger your expenses, the more you save).
CSP EnterpriseA cloud solution provider can also lower your costs as they optimise and monitor your Azure spending. Microsoft’s bills are incurred monthly, and at Intercept we can identify your monthly overspend on Azure and give you the best practices for optimising costs in the cloud.
Whereas other licencing models include minimum seats, this program is ideal for any modern-day business (especially for small and medium-sized enterprises) as there are no requirements for devices or users.
And you don’t have to buy more than you need. And when your needs change, you simply increase the number of users (devices) as desired. It's the same when you need less; then, you can decrease it as you wish.
As a customer, you’ll benefit from more flexibility in payment schedules, as you can be invoiced monthly or annually. But there’s more.
Another plus is that you’ll get a single bill for all your licences: support, billing and maintenance.
Besides receiving direct billing, you also can get technical support. At Intercept, we offer this in our latest offering: Cloud Control
Having a specialised provider that helps you get the most out of Azure offloads you with many administrative tasks and lets you focus on core activities and moving your business forward. As Intercept, we are one of the few organisations with the Azure Expert MSP status. This means we offer the best-in-class managed services in Azure.
Do you want a more cost-efficient model to purchase Azure resources rather than committing to a multiyear contract? Even when your EA period is far from over, you can still switch. Learn how to switch from EA to CSP.
Moving from EA to CSP can be overwhelming, but it doesn’t have to be. With years of experience in the market, Intercept understands the unique challenges businesses face when evaluating their options.
Learn more!Any modern business with changing needs and fluctuating customer demands can take advantage of this purchasing model, as it allows you to upscale or downscale resources on demand. This makes it a flexible solution.
When you choose the right partner, they take away the headache of managing everything while providing you with dedicated support and managed services.
Intercept is your Microsoft Partner. We were born in the cloud era and are Azure Expert MSPs. We are also Gold Partners. We are ISO 27001:2013 certified and deliver your cloud services most flexibly via CSP directly.
Feel free to contact us; we will gladly help you along!
What does Microsoft CSP stand for?
Is CSP a licensing program?
Is it only for the cloud?
Do you need to sign a contract?
What is the alternative to Microsoft CSP?
What products does the CSP model provide?
Why do I need a Microsoft CSP?
Who will give me support?
What are the billing options?
What’s the difference between a direct or indirect CSP?
Can I enter or stop at any time?
Choosing the right model can be a daunting process. We can help you to make the right choice.