New Requirements For 1-Tier Cloud Service Providers

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    Our Marketing Director, Dave Wallen, recently sat down with MS Dynamics World to discuss some of the latest changes to Microsoft’s 1-Tier Cloud Service Provider (CSP) requirements.

    Under the current partnering model, only 1-Tier CSPs are able to directly sell Microsoft cloud solutions like Dynamics 365 to clients. Checkout our whitepaper “Demystifying Microsoft’s Cloud Service Provider Program for Dynamics Partners” to learn how CSP can enable partners to move to modern with minimal shock to their business.

    New Requirements For 1-Tier Cloud Service Providers

    • Beginning September 1 Direct CSPs must now buy one of two levels of support contracts with Microsoft: Starting at a $15K annual cost or $10K in emerging markets (Microsoft may soon institute revenue thresholds).
      • A Premier Support Plan for Partners will cost $50,000 Per Yr.
    • 1-Tier CSPs will have to provide a unique service offering through IP, managed services, or another type of application.
    • Billing and provisioning infrastructure must be in place at the CSP to manage cloud customers
    • Direct CSP’s must maintain a Silver or Gold Level Competency
      • Silver Level Competency is 5 Individuals Passing 3 Different Certifications
      • Gold Level Competency is 15 Individuals Passing 3 Different Certifications
    • Secure and solid infrastructure for billing & provisioning
    • Meet yearly seat requirements

    “Microsoft wants partners who can make what they see as the right investments in the cloud business model to stay as Tier1/Direct CSPs,” Dave Wallen told MS Dynamics World in the recent article. “They are trying to give partners who do have scale to invest in Tier 1 the time they need. Partners can do it with good billing infrastructure and with investment in developing IP to be SaaS-ready. That’s not a huge investment for every firm, but Microsoft is raising the bar.”

    It also looks like Microsoft will not add any new 1-Tier CSPs until August 2018.

    We have seen many Dynamics channel changes in recent months as Microsoft continues its push to be at the forefront of digital transformation. Since the launch of the One Commercial Partner program last year, the channel has experienced the elimination of a separate Dynamics field organization, the early retirement of many long-time Dynamics leaders and the former Cloud/Platform leadership put in charge of the entire SMB space. The CSP program was designed to help usher the Partner Channel into this next phase of transformation. Learn more about Dynamics channel changes.