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Breaking Down Microsoft CSP Reseller Incentives – October 2019

Tony Cai
Tony CaiPartner Sales Executive
0 commentsOctober 04, 2019

On October 1st, Microsoft updated their Partner Incentives for indirect CSP resellers. Indirect CSP means you purchase Office365 or Azure through distributors like Ingram Micro, SherWeb, or Pax8. In order take advantage of these incentives, you need to be a Silver or Gold partner with one of the competencies below:  

Competency Level
Windows and Devices Silver or Gold
Enterprise Mobility Management Silver or Gold
Cloud Customer Relationship Management Silver or Gold
Cloud Productivity Silver or Gold
Data Analytics Silver or Gold
Cloud Platform Silver or Gold
Small and Midmarket Cloud Solutions Silver or Gold
Data Platform Silver or Gold
Cloud Business Applications Silver or Gold
Enterprise Resource Silver or Gold

 

Eligibility:

  • You'll need to be an active Microsoft Partner Network member
  • Your organization needs to have a Gold or Silver level in one of the above competencies
  • You need to sign up for the Partner Incentive Program (you can enroll by emailing OCINA@microsoft.com)
  • You need a valid cloud reseller agreement

To check to see if you have any competencies, click here

 

Now, let's examine the two tables below:

Microsoft CSP October Incentives

 

Microsoft CSP incentives

 

 

We will only pay attention to the Q2 incentives in the chart above. Microsoft's FY20 Q2 starts in October. They call their three clouds Intelligent Cloud, also known as Azure; Business Applications, also known as Dynamics365; and Modern Workplace, also known as M365. However, we will not be covering Dynamics365 here. 

Office 365 Business Premium and above + Microsoft 365 Business and above 

  • 4% monthly - Core incentive* 
  • 5% monthly - Global Strategic Product Accelerator* 
  • 5% monthly - M365 Business Local Accelerator (US Only)* 
  • 5% monthly - Modern Workplace if MRR is > $250/month* 

19% monthly for M365 Business/O365 

 

Azure – (Intelligent Cloud) – All MSP workloads (Nerido Core, Professional, Enterprise)  

  • $500 one time – New Azure customer that surpasses $500 in MRR ** 
  • $500 one time - New Azure customer that surpasses $1000 in MRR ** 
  • $3500 one time – If Azure customer surpasses $5000 in MRR ** 

$4500 in total onetime incentives for selling Azure 

 

Azure CSP Software Subscriptions and Reserved Instances 

  • 1.25% - CSP Software Subscription for Windows Server  
  • 6% - CSP Software Subscription for SQL Server  
  • 10% - Monthly rebate for RI’s consumed for Reserved Instances paid upfront 
     

* These accelerators DO NOT need to be new subscriptions; it's for revenue billed starting October. 

** These accelerators DO need to be new subscriptions. 

 

All the above incentives are in addition to the discounts you already get from buying through a distributor. The O365/M365 incentives are all stackable, and the Azure incentives are all stackable as long as the levels are met.

 

As incentives change, be sure to check back to the Nerdio Academy to get the latest breakdown of these incentives.

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