{"id":5400,"date":"2025-07-16T09:13:23","date_gmt":"2025-07-16T09:13:23","guid":{"rendered":"https:\/\/www.pax8.com\/blog\/?p=5400"},"modified":"2025-07-16T22:32:08","modified_gmt":"2025-07-16T22:32:08","slug":"microsoft-csp-changes","status":"publish","type":"post","link":"https:\/\/www.pax8.com\/blog\/microsoft-csp-changes\/","title":{"rendered":"Microsoft Announced New CSP Authorization Requirements. Here\u2019s How They Affect You as an Indirect Reseller."},"content":{"rendered":"

Extra, extra: Microsoft is changing up requirements for those in its Cloud Solution Provider (CSP) program, so listen up.<\/p>\n

On May 1, 2025, Microsoft announced<\/a> new authorization and CSP incentive eligibility requirements that will\u202ftake effect\u202f on October 1, 2025.\u202f The idea is that these new authorization requirements help partners in the Microsoft CSP ecosystem stay compliant, affecting direct bill partners, distributors (formerly indirect providers) and indirect resellers (hey, that\u2019s you, Pax8 partner).<\/p>\n

Despite these changes, Pax8 will continue to do business as usual in the countries in which we operate and will not be de-authorized. Our NAM, APAC and EMEA regions will continue to operate as normal and service our partners\u2019 Microsoft needs.<\/p>\n

Take a look at the new requirements in the chart below.<\/p>\n

\"\"<\/p>\n

There will be more details to follow, but the main point of this announcement is that these changes are \u201cdesigned to fuel growth in the small and medium enterprise customer segment through our partners,\u201d according to<\/a> Nicole Dezen, Microsoft\u2019s Chief Partner Officer and Corporate Vice President for the Global Partner Solutions Organization. They\u2019re also required, if you want to maintain your CSP status in FY26, which for Microsoft is July to June.<\/p>\n

It’s important to note that these changes align with Pax8\u2019s core values, as they’re designed to not only help partners stay compliant but also thrive. As we said in our recent New York Times ad, \u201cTimes Change. Technology is moving forward. The way companies buy, sell and scale has evolved. And yet, the biggest names in the industry are still clinging to the way it\u2019s always been done ….\u201d This update confirms Microsoft agrees: Things need to change in order to progress in this industry and the current moment.<\/p>\n

What Else Is Changing?<\/h3>\n

As part of its announcement, Microsoft is also planning to introduce three-year commitment SKUs of Microsoft 365 E3 and E5. This adjustment follows the changes in eligibility for Enterprise Agreements, with CSP now being the chosen method of transacting. These three-year commitments are designed to replicate some of the attributes of Enterprise Agreements, and as the name suggests, they’re aimed at larger customers \u2014 the minimum thresholds are at more than 100 seats.<\/p>\n

Just note, for many Pax8 partners and anyone else servicing small and medium-sized businesses (SMBs), three-year SKUs may not be a particularly advisable route \u2014 there are payment and contractual constraints associated with these SKUs, and our initial recommendation for driving longer-term commitment with your customers would be to guide your customers toward a long-term AI-driven strategy. They may be thinking more year-to-year or even month-to-month, compared with their enterprise counterparts. You can be a part of that journey by advising and supporting them with an outcome-based strategy \u2014 and we’re here to help, support and guide you on this.<\/p>\n

What Are the Reasons Behind Microsoft\u2019s Decision?<\/h3>\n

Simply put, Microsoft is working toward the same future as Pax8. To support partners on their transition from a break-fix model to managed service provider (MSP) to trusted business adviser, Microsoft relies on organizations like Pax8 to provide more than a licence transaction; we also offer guidance on this journey and try to help partners stay up to date and make these transitions as smoothly as possible.<\/p>\n

The Pax8 Marketplace<\/a>, coupled with enablement through Pax8 Academy<\/a> and extra bandwidth and expertise from Pax8 Professional Services<\/a>, is here to help partners like you grow their business, be more efficient and to reduce your risk. Also, we host a monthly Microsoft update to review critical updates, share key details and go over actions you should take to generate success \u2014 sign up here<\/a>. We want to guide you through this period of change \u2014 so you can stay up to date while unlocking new opportunities like AI through Microsoft Copilot.<\/p>\n

What Is the Impact to Pax8 Partners?<\/h3>\n

We want\u202fto reassure you that our partners (indirect resellers) will not see any major changes to their business as a result of these changes. This means our existing relationships and collaborations will continue as usual, ensuring stability and continuity in our operations (and yours). Your Pax8 team is on hand to unpack this. If you need support or have questions, contact your channel account manager.<\/p>\n

How Am I Impacted if I\u2019m Not a Pax8 Partner?<\/h3>\n

Firstly, we hope you\u2019re doing OK. No one likes sudden change, and we understand this can be disruptive to your business. We realize you may have had longstanding relationships with your current provider. If we can help you, we\u2019d be happy to show you around the Pax8 Marketplace and everything we offer so you can kick the tires first.<\/p>\n

One thing we can say is that we understand Microsoft better than most, as the 2024 Microsoft Global Partner of the Year<\/a>. And with a community of more than 40,000 partners like you, we can empathize with your day-to-day pains and help you capitalize on opportunities. For example, our Marketplace has built into it something called Opportunity Explorer that helps you identify sales opportunities, reveal security gaps and define recommendations across comparative vendor solutions \u2014 pretty cool, right?<\/p>\n

Still Have Questions? Let\u2019s Chat<\/h3>\n

So, for Pax8 Partners, we want to reassure you that you’re in safe hands and on the right path. For those being forced into reassessing their technological relationships due to these changes, we want to chat about how we can help make it easier. Get in touch.<\/p>\n

Become a partner<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This announcement from Microsoft helps maintain a compliant ecosystem, but it requires resellers to do a bit of reconfiguring. 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