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Microsoft CSP Program - Why to Go Direct, Indirect, or Hybrid

May 30, 2018

You've likely heard the news that Microsoft is changing the CSP direct program. Starting August 31, CSP direct partners will be required to pay a minimum of $15,000 per year for partner support. Luckily, this isn't your only option. It's clear that Office 365 and Azure services have become staples for Managed Service Providers (MSPs) across the board. Most modern offices simply can't run without the cloud productivity and infrastructure tools Microsoft has become known for. For most MSPs, offering Office 365 services is mandatory. Clients demand them. But offering these services is becoming a bit more complex with [these]( new rules that go into effect on August 31, 2018. Fear not, your Pax8 Cloud Wingman is here to guide you through your CSP Program options: **Direct** Being a direct reseller of Microsoft cloud services comes with lofty margins, some as high as 20%. That said, direct partners are required to manage all billing and implementation, as well as provide 24/7 support. Under the new requirements that go into effect on August 31, 2018, direct partners must now also meet these requirements: * Provide at least one managed service, IP service, or customer solution application * Enable billing and provisioning infrastructure * AND purchase one of two support packages: * Microsoft Advanced Support - A break/fix plan that runs $15,000 per year * Microsoft Premier Support - A comprehensive plan that runs $50,000 per year For many MSPs, these costs will be too high to justify maintaining a direct relationship with Microsoft for cloud services. To continue to offer these services without having to meet the stringent requirements or pay the hefty support fees, partners can instead opt for an indirect relationship with a cloud distributor (like Pax8). **Indirect** An indirect Microsoft cloud services distribution relationship enables you to capture healthy margins without the hassle of paying high support fees. When you partner with Pax8 for Microsoft cloud services delivery, you get: * 24/7 support * A complete quote-to-cash management platform to simplify billing and provisioning * A squad of Cloud Solution Advisors and Service Delivery Managers to support you every step of the way To learn why thousands of MSPs are making Pax8 their Microsoft cloud services distributor of choice, sign up for the [Live Q&A: Pax8 Wingman CSP Program]( **Hybrid ** Instead of choosing either an all direct or all indirect relationship with Microsoft, you can opt for a hybrid approach. If your volume is big enough to justify keeping some services direct, you can certainly do that while delivering other Microsoft cloud services through Pax8. The choice is yours. **Learn How Pax8 Saves You Thousands ** Delivering Microsoft cloud services is easy when you partner with Pax8. Learn why so many MSPs are making Pax8 their cloud [distributor of choice](, and [become a Pax8 partner]( today to take advantage of all the ways we can help automate your Microsoft cloud services business.
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