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Microsoft’s CSP update – the lowdown

Written By Chris France, Technology Solutions Leader at boxxe, breaks down what Microsoft’s latest license announcement means for CSP customers and Channel Partners.

See how the changes might affect you, and what you can do to turn these changes into benefits.

The Microsoft new Commerce Experience for Microsoft Cloud Solution Provider Program (CSP) is one of the most significant changes to the CSP program since its inception.

Due in October 2021 – this, coupled with the end of Microsoft’s Open Licence program, will fundamentally change the way the CSP program operates from commercial and operational perspectives.

What do these changes mean to customers on the CSP program today, or the wider Microsoft licensing community?

Which products are affected?

  • Office 365 and Microsoft 365 Suites,

  • Dynamics 365,

  • Microsoft Power Platform, and;

  • The new Windows 365 Cloud PC subscriptions.

With this, it’s pretty obvious that almost every CSP user will be impacted in some way by the New Commerce Experience.

What has Microsoft changed and who should be paying attention?

For customers, the New Commerce Experience encourages longer-term license commitments with term-based discounts. As an added bonus, these longer-term discounts let organisations take advantage of price protection.

This commercial advantage comes at the expense of flexibility, meaning you won’t be able to reduce or pause your subscriptions mid-term.

If your priority is flexibility, you can still access a monthly subscription that allows cancellation or seat count reduction. You just need to keep in mind that this will come at a premium.

Interestingly, Microsoft did announce that Windows 365 will still be exclusively available on a monthly subscription. That means users can still access all the tools in the Windows 365 suite and retain the ability to adjust seat counts in any month with per-user pricing.

For channel partners – this change, coupled with Microsoft’s expected 10-20% price rise due on 1st March 2022 essentially sets a clock running for you to help your customers understand these changes.

What do customers need to do next?

It’s time to get your ducks lined up, the best thing you can do is get in touch with your licencing account manager to set up a review.

And as for us, here at boxxe, those are exactly the types of conversations we’re starting. With the right specialists on hand supporting you, there’s no reason why these changes can’t lead everyone toward the best licensing program and safest rates for the longest time.

More information:  https://www.boxxe.com/microsoft-csp-changes

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2020