Expanding opportunities for partners in the Cloud Solution Provider program
Update December 17, 2020: Today, as we continue to prioritize for the cloud, we have provided notice of future changes for public sector (government, education, and nonprofit) customers purchasing through the Open License program. More details are available here.
Digital transformation and moving to the cloud continue to be at the forefront of business planning and investments for many customers. Over the next five years, IT spending is expected to grow by almost 6 percent (IDC e-book, Digital Transformation 2.0). IDC predicts that by 2024, Microsoft partners will generate USD$1.2 trillion in revenue from Microsoft technology.
As a cloud company, Microsoft is committed to helping partners and customers succeed and grow through digital transformation. We are continuing our own digital transformation journey, too. Through investments in our commerce experience platform and in the Microsoft Partner Network, and by evolving our licensing and incentives programs, we are making it easier for partners to help their customers move to the cloud, take advantage of new offers, and capitalize on the growth of the modern cloud technology market.
The Microsoft Cloud Solution Provider program has grown exponentially, with more than 90,000 participating companies. It is our primary partner sales motion for small and midsized businesses and for smaller corporate customers within the new commerce experience. Partners can create and deliver differentiated offers to customers, selling the Microsoft cloud portfolio and third-party solutions from the Microsoft commercial marketplace alongside their own value-added solutions and services. They are enabled to manage the entire customer engagement lifecycle and establish their credibility with customers as trusted advisors.
Expanding opportunities for partners
To build on this momentum, we are expanding opportunities for partners in the Cloud Solution Provider program:
- Targeting January 2021, partners enrolled in the Cloud Solution Provider program will be able to sell commercial perpetual software licenses for on-premises deployment through CSP. This will give customers the licensing flexibility they need as part of their digital transformation.
- FY21 Cloud Solution Provider program incentives, coupled with a partner’s value-added services, enable greater profitability and margins for partners.
Perpetual software in CSP
The addition of perpetual software to the Cloud Solution Provider program in the new commerce experience will reduce the time and costs for partners associated with managing multiple licensing programs and lead to improved sales, operational, and management capabilities. Partners can expand their businesses by offering diverse solutions and managed services with the flexibility to combine licenses and managed services for hybrid cloud environments, further accelerating customers’ transitions to the cloud. Customers benefit from a simplified approach and greater flexibility in how they purchase software licenses in a way that’s easy to understand, that directly improves licensing asset management, and with predictable costs.
With a target start date of January 2021, perpetual software licenses (without Software Assurance) will be available to commercial customers through partners in the Cloud Solution Provider program. Customers can continue to work with you to renew and purchase new software licenses, Software Assurance, and online services through the Open License program until December 31, 2021. As of January 1, 2022, no renewals of Software Assurance and online services or new purchases of software licenses can be made through the Open License program, and new license-only purchases should be transacted through the Cloud Solution Provider program.
We are committed to helping partners deliver transformative, cloud-based solutions to customers and consolidating purchases of both perpetual licenses and cloud solutions through the Cloud Solution Provider program. Incentive programs for partners in the Cloud Solution Provider program provide more flexibility for building deeper engagement and successful customer outcomes. After December 31, 2020, Microsoft will no longer offer Managed Reseller and Commercial Distributor incentives for Open License transactions. Learn more about partner incentives.
Build a profitable, sustainable practice
The Microsoft Partner Network can help you unlock sustainable growth and profitability. We have guidance, resources, and programs to support your business growth and accelerate your time to market. Explore your opportunities today.
- If you are a reseller not currently enrolled in the Cloud Solution Provider program, contact your distributor of choice for information on how to get started, or connect with an indirect provider here.
- If you are enrolled in the Cloud Solution Provider program, learn more about perpetual software in CSP and incentives here.
Through this transformation, one truth remains constant: Partners make more possible. You play a critical role in each customer’s journey. Our programs and resources for partners will continue to support you in this increased cloud adoption and digital transformation.