Launching a Microsoft Cloud Solution Provider (CSP) practice is a smart move for IT service providers looking to grow recurring revenue, deepen customer relationships, and build a scalable cloud business. Whether you’re a VAR, MSP, ISV, or consulting firm, the Microsoft CSP program offers a powerful opportunity to resell cloud services like Microsoft 365, Azure, and Dynamics 365—while owning the customer experience.
What Is the Microsoft CSP Program?
The CSP program provides partners with the opportunity to sell Microsoft cloud services—such as Microsoft 365, Azure, Dynamics 365, and more—directly to customers, while managing billing, provisioning, and support. This approach puts you in control, unlike traditional licensing models. There are two main models to choose from:
Indirect Reseller: You collaborate with an authorized Indirect Provider (distributor) who takes care of billing and support.
Direct-Bill Partner: You manage the entire relationship yourself, but you’ll need to meet Microsoft’s revenue, support, and infrastructure standards.
Most partners begin as Indirect Resellers because it’s a low-risk option that allows for a quicker launch and lets you concentrate on growing your customer base.
Step-by-Step: Starting Your CSP Practice
- Choose Your Entry Point
- Start Indirect: Great for speed to market, no need to build billing/support infrastructure.
- Graduate to Direct: If you’re hitting scale (typically $300K+ cloud revenue annually) and want to own more of the stack.
- Select Your Indirect Provider (Distributor). Not all distributors are equal. Evaluate:
- Portal experience and automation
- Support responsiveness
- Value-added services (migration, funding, enablement)
- Pricing transparency
- Get Your Microsoft Partner Center Set Up. Enroll in the Microsoft Cloud Partner Program (MCPP) and set up your Partner Center account. You’ll need:
- A Microsoft Entra ID (formerly Azure AD) tenant
- A legal entity
- A Partner Location (verified by Microsoft)
- Build Your Offer Portfolio. Start with common cloud services:
- Microsoft 365 Business Premium, E3, E5
- Azure subscriptions and resource-based services
- Add-ons: Defender, Intune, Teams Phone, etc.
Then layer in:
- Your own services: Onboarding, migration, security, compliance, FinOps, 24/7 support
- Recurring services for higher margin: Managed Services, Assessments, Training
- Set Up Billing & Provisioning Workflows. Your distributor will typically provide a portal. But for scale, consider:
- PSA/CRM integration
- Billing automation
- License tracking tools
- Define Your Support Model. Microsoft requires Indirect Resellers to offer Tier 1 support. Decide:
- In-house vs. outsourced
- SLA standards
- Support tools (ticketing, chat, escalation policies)
Tips for Long-Term CSP Success
Bundle your services: Instead of just reselling licenses, consider adding real value, such as offering compliance audits or cloud security check-ups. Master incentives & programs: Make the most of Microsoft co-op funding, Solution Assessments, and the New Commerce Experience (NCE) to boost your offerings. The CSP landscape is always changing. Stay current and keep an eye on Microsoft partner announcements, roadmap updates, and any shifts in pricing models. Furthermore, drive recurring value by prioritizing customer retention, upselling, and transforming those license sales into a steady stream of long-term service revenue.
The CSP Advantage
- Own the customer relationship
- Unlock recurring revenue
- Differentiate with value-added services
- Access exclusive Microsoft incentives
- Build a scalable cloud practice
Starting a CSP practice isn’t just about pushing licenses—it’s about creating a cloud business that evolves alongside your customers. With the right groundwork, partners can transition from mere resellers to trusted strategic advisors, shifting their focus from just monthly bills to delivering real monthly value.
About The IT Strategists
We help organizations simplify the complexities of cloud licensing, contract negotiations, cost management, and FinOps. As trusted partners, we combine deep industry expertise with tailored strategies to maximize value, control spending, and fuel sustainable growth. To learn more visit www.TheITStrategists.com.