If you’re considering purchasing licenses or subscriptions from Microsoft, you might have come across their Cloud Solution Provider (CSP) program. Since its launch in 2015, the CSP program has steadily gained popularity, especially with the growing demand for cloud-based solutions, particularly hybrid ones. But what exactly is the CSP program, and how does it impact you and your organization as a consumer of Microsoft products?
At Softlanding, we have extensive experience dealing with Microsoft for many years and being a Microsoft Solutions partner. In this blog post, we’ll delve into the details of Microsoft’s CSP program: its definition, purpose, and the benefits it offers to its buyers.
What is the Microsoft CSP Program?
CSP, short for Cloud Solution Provider, is a licensing agreement that Microsoft introduced in 2015. Its primary purpose is to offer customers a more convenient and comprehensive way to procure Microsoft cloud services and software licenses directly from Microsoft partners. These partners often package these services with their own offerings, providing customers with tailored IT solutions that include licenses.
The CSP program encompasses various products and services, such as Microsoft 365 (formerly known as Office 365), Microsoft Azure, and a selection of server and desktop licenses. The main idea behind CSP is to enhance customer experience, creating a closer relationship between customers and Microsoft with the assistance of skilled partners.
In this model, the chosen partner takes care of managing the subscription on behalf of the customer. This grants the partner more control over the customer experience and billing processes. However, it also results in a single point of contact for the customer, streamlining their interactions for everything from licenses to support needs.
While CSP differs from traditional Microsoft licensing channels like Enterprise Agreement, Select, or Open Value, it still requires customers to sign a licensing agreement with Microsoft. The CSP partner facilitates this process, but notable differences exist between CSP and the traditional channels, including variations in operational methods, availability of Microsoft products and services, and differences in licensing terms and conditions.
Why Choose the CSP Program?
To understand why you might prefer the CSP program, let’s clarify the types of cloud services it covers:
- SaaS Product Licenses: This includes licenses for products like Microsoft 365, Dynamics 365, Enterprise Mobility Suite, or Power BI. These are typically purchased based on the number of users, known as seat-based services.
- Azure Infrastructure and Platform Services: This category involves services where you pay based on usage, referred to as usage-based services. Examples include Azure virtual machines, Azure Websites, or Azure SQL.
While the concept of these cloud services seems straightforward, the challenge arises when it comes to purchasing them. There are various models and programs available, making the process more complex than it seems at first glance. The CSP program aims to simplify this by offering a convenient and flexible way to acquire Microsoft’s cloud services through their authorized partners.
How to Determine if CSP is the Right Program for You?
Navigating the various programs for Microsoft cloud products can be challenging. To simplify and clarify your options, let’s provide a quick summary of the typical ways to purchase Microsoft cloud products.
- Pay as You Go: This is the most familiar option, where you can easily go to the Azure website, enter your credit card details, and get charged based on your usage or licenses purchased during the billing period. It offers flexibility and convenience. However, it might pose challenges in finding a suitable credit card and authorized personnel for its use.
- Enterprise Agreement (EA): The EA option is usually designed for larger organizations. It involves a dedicated agreement between your company and Microsoft, outlining specific licensing terms. It’s well-suited for big companies with substantial requirements.
- Cloud Service Provider (CSP): CSP, also known as your local partner delivering cloud services, offers a monthly subscription model. By choosing CSP, you gain access to personalized support and a range of benefits, ensuring a high level of service. Note that there are different tiers of CSPs with varying offerings; you can find more details about different models on Microsoft’s website.
Each pricing model has its benefits, and your decision should align with your organization’s size, requirements, and preferences. By understanding these options, you can make an informed choice that best suits your needs.
Here is a short summary of the features of each program:
| Pay-as-you-go | Cloud Solution Provider (CSP) | Enterprise Agreement (EA) | |
| Commitment | No commitment required | Flexible: monthly, 1 year or 3 years | 3-year agreement |
| Users | No minimum number of users | No minimum number of users | 500 users minimum |
| Agreement | Microsoft Direct | Agreement with partner | Microsoft Direct or Partner-led |
| Billing | Monthly | Monthly or annual | Annual upfront billing for the full year |
| Increase users | Anytime | Anytime | Anytime |
| Decrease users | Anytime | Anytime | Once per year with 30 days’ notice. Must maintain 500 users minimum (support included) |
| Discounting | No discount. Highest cost for Microsoft Products. | Depends on partner. Partner has some flexibility to provide discounts. | Many incentive programs available to discount Azure costs dependent on monthly consumption. |
| Software Assurance | Not included | Not included | Included |
| Support | Direct Microsoft support | Support from your certified CSP provider | Basic support from Microsoft.
Additional cost for Premier support. |
| Product Availability | Focused on Cloud licenses: Microsoft 365, Enterprise Mobility Suite, Microsoft Dynamics, and Microsoft Azure | Focused mainly on Cloud licenses: Microsoft 365, Enterprise Mobility Suite, Microsoft Dynamics, and Microsoft Azure | All Microsoft products |
Migrating from Existing Services to CSP
Transitioning from existing services to a CSP (Cloud Solution Provider) model requires careful consideration based on your current agreements and their locations. Here are the steps and guidelines you need to follow for different scenarios:
Migrating from an Enterprise Agreement (EA) to CSP:
If you are moving from an EA to the CSP model, you must fulfill the terms of your original agreement. To proceed with the migration, you need to follow these steps:
- Select a CSP Direct bill partner: First, you’ll need to find a CSP Direct bill partner and request them to transfer your Azure subscriptions to the CSP model. To do this successfully, you’ll need to purchase an Azure plan.
- Accept the Microsoft Customer Agreement (MCA): You can only move to the CSP model if you agree to and accept the Microsoft Customer Agreement (MCA).
Migrating from any other location to CSP:
If you are transferring to CSP from a location other than EA, here are the guidelines you should adhere to:
- Work with a CSP partner: When moving to CSP, you must work with a CSP partner. Individual transfers without a CSP partner are not allowed.
- Verify Azure Resource Manager model compatibility: Ensure that your Azure resources can be moved from their current host subscriptions to their destination and that all subscription services use the Azure Resource Manager model. This verification is essential before starting the migration process.
- Obtain RBAC owner access: Ensure that the user account responsible for the transfer has RBAC (Role-Based Access Control) owner access. This access is necessary to handle the transfer and gain access to both the source and target subscriptions.
- Use the same Azure Active Directory tenant: The source and target CSP subscriptions must be housed in the same Azure Active Directory (AD) tenant. You cannot switch your Azure AD tenant for an Azure CSP subscription. Instead, you can only add or associate the subscriptions with your existing CSP Azure AD tenant.
By following these guidelines, you can successfully migrate your services to the CSP platform and take advantage of the benefits it offers.