Microsoft’s Cloud Solution Provider (CSP) program is undergoing significant changes, introducing new requirements for partners. These updates aim to enhance customer confidence, fuel growth in the SME segment, and ensure a capable and compliant partner ecosystem. If you’re a Managed Service Provider working with Microsoft licenses, it’s crucial to understand how these shifts might impact your operations and what steps you need to take.
What’s Changing? New Requirements for CSPs
Effective October 1st, Microsoft is introducing new mandatory requirements for all direct bill partners, distributors, and indirect resellers. While indirect resellers will see fewer changes, preparation is key to avoid negative impacts.
Mandatory Requirements for all Approved Microsoft Resellers:
- Business Vetting Process: Partners must complete Microsoft’s business vetting process, which includes verifying company details and potentially submitting additional documentation.
- Minimum Revenue Threshold: You’ll need to generate at least USD$1,000 (approximately AUD$1,550, or about four annual Microsoft 365 Business Premium licenses) in trailing 12 months billed revenue at the tenant level.
- Microsoft Partner Agreement (MPA): Indirect resellers must sign the Indirect Reseller Microsoft Partner Agreement. This involves confirming your CSP program enrollment status and accepting the MPA in Partner Center.
- Partner Center Security Score: A minimum security score in Partner Center will be required. This means enabling Multi-Factor Authentication (MFA) for all administrative users in your CSP tenant and designating a security contact. This is a new, separate security score from your M365 Admin Centre Secure Score.
Additional Requirements for Earning Incentives & Rebates
If you wish to continue earning incentives and rebates from Microsoft, you’ll face further hurdles beyond the standard CSP requirements:
- Solutions Partner Designation: You must become a Solutions Partner, which is part of the newly rebranded Microsoft AI Cloud Partner Program (MAICPP), formerly MPN.
- Higher Revenue Threshold: The incentive threshold increases significantly to USD$25,000 (approximately AUD$38,685) in Microsoft licencing sales over 12 months.
- Support Plan: You must purchase either a Microsoft Advanced Support for Partners or a Premier Support for Partners plan for your CSP tenancy.
- Solution Area Points: For FY25 (starting October 1, 2024), partners need to accumulate a minimum of 25 “solution area points” in each relevant area (e.g., Azure, Modern Work, Business Applications, Security). These points are earned through selling and provisioning new seats, consumption, or usage. Notably, you can gain 10 of these 25 points by having two individuals complete intermediate certifications in the relevant categories.
Why the Change?
Microsoft states these changes are designed to ensure customers have “the utmost confidence that they are selecting a partner and provider that can deliver all the value that they need for the entirety of their business, including AI transformation”. Essentially, it’s about raising the bar for partner capabilities, ensuring compliance, and creating a more secure and robust ecosystem, ultimately cleaning up smaller, potentially non-compliant players.
"These changes… are designed to fuel growth in the SME customer segment through our partners.” Microsoft Chief Partner Officer and Corporate Vice President, Global Partner Solutions, Nicole Dezen
Key Deadlines to Mark Your Calendar
New requirements for direct bill partners, distributors, and indirect resellers officially commence on October 1st, 2025. The security compliance deadline has also been pushed back to October 1st (or your next anniversary) from July 1st.
For existing CSP partners, you must meet all FY26 requirements by the anniversary month of your first tenant authorization. Enforcement of these new rules will officially begin on October 1, 2025, based on your CSP program membership commencement date.
What MSPs Need to Do About the Microsoft CSP program changes
The first step is to assess your current relationship with Microsoft.
- No Impact: If you only purchase Microsoft licenses through a provider like Manage Protect and do not have or need a direct Microsoft Reseller partnership, you are not required to comply with these new requirements. You can continue to rely on your provider’s compliance.
- Impacted: However, if you are currently enrolled in the Microsoft CSP Indirect Reseller program, have your own Microsoft Partner Network (MPN) ID, or receive rebates/incentives, then you will need to comply to remain in the program.
If you are impacted, here’s a summary of what you need to do:
- Complete Business Vetting: Ensure your company information in Partner Center is accurate and respond to any verification requests.
- Meet Revenue Threshold: Monitor your CSP transactional revenue to ensure you meet the USD$1,000 minimum.
- Sign MPA: Verify your CSP program enrollment status and accept the Microsoft Partner Agreement in Partner Center.
- Achieve Security Score: Enable MFA for all administrative users, designate a security contact, and begin working towards the minimum 80% Partner Center security score. You can monitor your score via the Security requirements dashboard in Partner Center.
- For Incentives: Ensure you hold an active MAICPP membership with a Solutions Partner designation, meet the higher revenue threshold, acquire a support plan, enroll in the Incentives workspace, and aim for the 25 solution area points in each category.
An Option: Leveraging Manage Protect’s Expertise
Manage Protect has been assisting MSPs for over 14 years and we understand that change can be challenging. For partners who currently have their own Microsoft MPN but may struggle to meet the new requirements, Manage Protect offers several options:
- “All In Microsoft”: Continue with your own MPN and diligently complete all compliance mandates.
- “Hybrid”: Maintain your own MPN and meet the requirements, but choose to receive incentives and rebates through Manage Protect.
- “Managed”: For maximum simplicity, you can move all your Microsoft licensing under Manage Protect. In this scenario, Manage Protect will handle all compliance aspects, providing access to licenses and management under their MPN, including a dedicated management portal.
The new Microsoft requirements are here, but you have choices.
It’s essential to assess your situation and take proactive steps to ensure continued partnership and access to critical Microsoft services. Manage Protect is available to provide support and guidance through this qualification process, as part of our commitment to helping Australian MSPs work effectively and profitably with Microsoft.
