Learn how CSP partners can work together

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Appropriate roles: All partners interested in learning more about CSP authorization

This article describes the key types of partner relationships in the Microsoft Cloud Solution Provider (CSP) authorization. It also describes various use cases, benefits, and supported transaction scenarios for CSP program partners.

Being a CSP partner allows you to go beyond reselling licenses so that you can be more involved in your customers' business. CSP puts partners at the center of the relationship with the customer. This leads to deeper engagement with your customer, an insider's view of a customer's business, and the chance to uncover new sales opportunities and accelerate your customer's digital transformation.

Being a CSP partner also means you can harness more profitability streams. You can do so by integrating Microsoft (first-party) offers and third-party offers with your own, value-added services. This expands your business portfolio and better positions you to meet growing customer demands.

Types of CSP partner relationships

As a CSP partner, you can decide how you want to interact with Microsoft and with other partners. CSP currently supports three transactional relationship types:

  • Indirect providers
  • Indirect resellers
  • Direct-bill partners

Indirect providers (also known as distributors) purchase cloud offers from Microsoft and resell them to the indirect resellers in their channel for provisioning to end customers. Being an indirect provider means you have the infrastructure and capabilities to support indirect resellers at scale. To learn more about how indirect providers connect with indirect resellers, see Partner with indirect resellers in the CSP program.

Indirect resellers vary in size and business scope, and they don't have a direct billing relationship with Microsoft. As an indirect reseller, you depend on indirect providers to enable you to transact. Many indirect resellers also offer managed services, support, and billing solutions to customers. By working with experienced indirect providers, you can go to market without having to make a large investment. As an indirect reseller, you can also access a broader portfolio of Microsoft and non-Microsoft solutions. To learn more about becoming an indirect reseller, see Indirect reseller tasks in Partner Center.

Direct-bill partners have a billing relationship with Microsoft. As a direct-bill partner, you can purchase Microsoft offers and third-party offers directly from Microsoft, then sell them to your customers. You need to fulfill certain programmatic requirements for the role of direct-bill partner. This includes the ability to integrate with Microsoft using APIs. You also need to be able to provide billing, support, and managed services to customers on an ongoing basis, as well as demonstrate capabilities in security and compliance. For more information, see Enroll as a direct-bill partner.

CSP requirements: Accepting the Microsoft Partner Agreement (MPA)

As part of the continuous enhancements in CSP, we've updated the existing agreements for partners who want to join the CSP program.

The Microsoft Partner Agreement (MPA) gives partners a streamlined, digital agreement that supports new business scenarios, a reduced need for multiple partner contracts, and easier compliance with global, legal requirements.

An indirect reseller needs to accept the MPA before the reseller can participate in the following activities:

  • Before an indirect provider can associate the indirect reseller's PartnerID to a new CSP subscription order
  • Before an indirect provider can transact new business with that reseller

CSP indirect resellers need to do three things before they can transact new business in the Cloud Solution Provider program:

  • Onboard into Partner Center as a member of the Microsoft AI Cloud Partner Program
  • Enroll as an indirect reseller
  • Accept the Microsoft Partner Agreement (MPA)

For more information, see Microsoft Partner Agreement (MPA) for CSP partners.

Supported partner transactions in the CSP program

CSP partners are offered many opportunities to work together. The following section describes how a few, sample partner scenarios might or might not be supported.

Sample scenario 1: What if a partner wants an end-to-end customer relationship, inclusive of selling to the customer and providing customer billing and support?

This scenario can be supported by two types of transactional relationship:

  • Option A: Direct Bill: Microsoft sells to the direct-bill partner. The direct-bill partner then sells to the end customer.
  • Option B: Indirect Provider with Indirect Reseller: Microsoft sells to the indirect provider. The indirect provider then sells to the indirect reseller. The indirect reseller then sells to the end customer.

Sample scenario 2: What if a partner has a customer who needs to procure a specific service or solution offered by another CSP partner?

The end customer can purchase different services from different partners, based on the customer's business needs. For more information, see Multipartner support.

Sample scenario 3: What if a partner is contacted by a customer who wants to hire them to manage and support their subscriptions?

The customer can engage multiple partners to manage their subscriptions. For more information, see Multichannel support.

Sample scenario 4: What if a CSP partner (either an indirect provider, indirect reseller, or direct-bill partner) wants to buy Microsoft or third-party offers for their own use (as the end-customer)? Can the partner buy such offers from another CSP program partner?

  • Option A: If a partner wants to purchase Azure subscriptions for their own use, they can create a shared services tenant. To learn more, see Buy Azure subscriptions for your own use - Azure Partner Shared Services.

  • Option B: A CSP partner can set up another Microsoft Entra tenant that is a separate customer environment, and then establish a CSP relationship with an indirect reseller or direct bill partner.

Sample scenario 5: What if a partner in the CSP program wants to sell to themselves as an end-customer?

By contract, partners in the CSP program aren't allowed to sell Microsoft or third-party offers to themselves (as end-customers) or to their affiliate organizations (as end-customers).

Sample scenario 6: What if an indirect reseller wants to sell to a customer who is in a different region?

A CSP partner can sell only to customer businesses located in the same CSP region as the partner's CSP tenant. To learn more, see Cloud Solution Provider program regional markets and currencies.

Sample scenario 7: What if an indirect provider wants to establish a relationship with an indirect reseller in a different region?

A partner can establish a relationship only with a partner from the same region.

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