“Be proactive,” Microsoft partners set to lose Direct Cloud Solution Provider (CSP) status after 1 October have been urged.
Microsoft in May announced it will introduce a new $1m revenue threshold for Direct CSPs as part of wider efforts to streamline its CSP ecosystem.
This will force a significant portion of Direct CSPs to begin buying through distribution.
But talking to IT Channel Oxygen, Andy Porter, newly appointed Microsoft Technology Strategist at Microsoft distributor Giacom, claimed Indirect CSP status shouldn’t be seen as a downgrade.
“In reality a move to Indirect is probably more of a strategic upgrade than it’s ever has been before,” he said.
Although Porter said Microsoft recently clarified that the new revenue gate will only be applied after each partner’s renewal date (rather than on 1 October), Porter urged CSPs to act sooner rather than later.
“Don’t wait,” he said.
“Be proactive, whether you’re impacted on 2 October, 1 January or next September.
“Talk to someone who is able to understand both the commercials and technical implications of the Microsoft ecosystem as part of those changes and beyond.”
Porter characterised the wider CSP shake-up as “part of Microsoft’s broader efforts to streamline” its ecosystem.
Despite the disruption it is causing elsewhere, as Microsoft’s largest indirect provider in the UK Giacom is well above the $30m threshold and won’t be affected.
“It’s a bit of an abrupt change, but ultimately it’s just about aligning partners to the programme with long-term sustainable growth,” Porter said.
Porter joins Giacom this week from Microsoft itself, where he held a similar role. He brings nearly 15 years’ experience in the partner ecosystem and Microsoft’s technology stack.
“At Giacom, we’re already working with partners in navigating those changes, and that was exactly the reason for me coming over,” Porter said.
“My advice would be to reach out or drop me a message, and I’m happy to put that time in with partners, just to help guide them and clarify what their options are.”
This article was produced in association with Giacom and is classified as partner content. What is partner content? See more here.
