Evolving the Azure offer in the Cloud Solution Provider program
Update July 21, 2021: As announced in January, the start date for phase 1 is today, July 21, 2021. Today, we are also announcing that the start date of phase 2 will be February 1, 2022. This date is updated below, and more information is available here.
The new Microsoft commerce experience will create a consistent and simplified purchase experience for customers and enables them to digitally transform, with greater flexibility in how and where they buy. Partners play a critical role in the customer’s cloud journey, regardless of the channel(s) customers decide to transact on with Microsoft. Once fully launched, the updated commerce platform and model will enable partners to participate through sales motions for larger enterprise customers as well as small and medium companies, and it will give partners opportunities to expand their participation to drive customer success.
The new commerce experience for Azure in the Cloud Solution Provider program expands partner opportunities to build and deliver managed services, further extend their customer base, and help customers on their digital transformation. It delivers the following benefits:
- Simplifies the Azure purchasing process with Azure Plan.
- Creates better pricing alignment across channels (based on customer and partner feedback, the new Azure experience in the Cloud Solution Provider program will use a single pricelist, in USD, providing customers and partners with consistent pricing at a global scale).
- Reduces customer acquisition obstacles by providing partners with tools that incorporate the appropriate governance, customer experience, and policies to move them to the new Azure experience in the Cloud Solution Provider program.
- Enables partners to manage their customers more efficiently by leveraging capabilities such as Azure Lighthouse and Azure Cost Management.
- Expands access to Azure Marketplace.
Expanding on the new commerce experience for Azure, we have enabled transition tools to enhance the flexibility to manage Azure in ways that adapt to customers’ evolving business needs and to help facilitate you getting them to the new Azure offer in the Cloud Solution Provider program. View the summary of the tools that exist to support the transition of customer Azure subscriptions in the Cloud Solution Provider program.
New Azure in Cloud Solution Provider program offer (Azure plan)
With the new commerce experience, partners gain access to Azure services at pay-as-you-go rate for customers under the Microsoft Customer Agreement, through an Azure plan. This plan simplifies the purchase experience by enabling the creation of multiple Azure subscriptions within an Azure plan. There is no longer a need to submit a separate order per Azure subscription in Partner Center.
Changes to the previous Azure offer availability in the Cloud Solution Provider program
When we announced the new Azure offer in the Cloud Solution Provider program (Azure plan) we informed partners that the previous Azure offer and platform would continue to be available, alongside the new Azure experience, for some time, and that we would inform partners six months in advance before any changes would be made to the previous Azure offer.
While the new Azure offer in the Cloud Solution Provider program (Azure plan) provides partners with an improved experience, we want to give partners time to incorporate the new Azure features with their services and transition their customers to the new experience.
There will be three phases of change to the previous Azure offer. Today, we are sharing more information on these three phases.
Phase 1 – Beginning July 21, 2021
In phase 1, all new Azure Cloud Solution Provider program business will be on the new Azure plan offer. Meaning:
- For all existing reseller relationships between partners and customers in the Cloud Solution Provider program, if the customer has already purchased the previous Azure offer, the partner may continue to transact, and the customer may continue to purchase the previous Azure offer from that partner.
- The previous Azure offer will no longer be available to net-new partners transacting in the Cloud Solution Provider program.
- The previous Azure offer will no longer be available to net-new customers purchasing via a partner in the Cloud Solution Provider program.
- For all new reseller relationships or new customer acquisitions, partners can only transact the new Azure offer (Azure Plan).
- For all existing reseller relationships between partners and customers, if the customer has never purchased Azure before, the partner may only transact, and customer may only purchase the new Azure offer from that partner.
Phase 2 – Beginning February 1, 2022
In phase 2, which will begin Feburary 1, 2022, incentives and partner margin opportunity will be removed from the previous Azure offer.
Phase 3 – Date to be determined
In phase 3, any remaining customers on the previous Azure offer will be migrated to the new Azure offer in the Cloud Solution Provider program (Azure plan). As with the previous phases, we will communicate the phase 3 start date to partners 6 months in advance.
Partner Earned Credit (PEC)
With the new commerce experience partners get recognized for differentiated value-added services on an ongoing basis through the partner earned credit model. Partner earned credit rewards partners who focus on driving customer success via value-added services that generate sustainable profitability.
We are confident the new Azure offer in the Cloud Solution Program will facilitate a more streamlined and straightforward experience for partners and ultimately help you deliver more for your customers. At Microsoft, we’re always working on new resources to help partners in their journey, and I’m confident that the offering—as well as the phased roll-out—will allow you to drive success for customers on their digital transformation.
Partner Earned Credit (PEC)
Partners are highly encouraged to familiarize themselves with the partner earned credit model, leveraging the following resources:
- Guide Understanding Partner Earned Credit (microsoft.com)
- Partner earned credit - overview - Partner Center | Microsoft Docs
- Partner earned credit for managed services - Partner Center | Microsoft Docs
- Roles, permissions for partner earned credit - Partner Center | Microsoft Docs
- On demand training module on partner earned credit in Azure in CSP modules (eventbuilder.com)
The new commerce experience