Tech Data is calling on any resellers that have not yet engaged on the Microsoft CSP (Cloud Solution Provider) programme, in particular those who currently earn fees for Microsoft Cloud Solutions through the Partner of Record scheme, to switch their customers to CSP before June, when all fees relating to Partner of Record through the Advisor programme will be withdrawn by Microsoft.
The distributor is making this recommendation following its best months yet for Microsoft CSP net new sales, in November and December 2016, when its total number of registered end user seats grew to more than 110,000, all of which will be generating recurring revenues for Microsoft CSP partners.
Dwayne Earl, Software Business Unit Manager at Tech Data, said: “It’s vital for resellers to act. Under the Advisor scheme, although the partner would earn a fee from Microsoft, not only has this fee eroded over time, it will disappear completely at the end of June. The preference now is for all sales to go via partners, but they need to do that through CSP, so those resellers who did act as Advisors need to make their move and switch their customers across now.”
Tech Data says resellers that do move end users from direct billing through Microsoft to CSP will see benefits such as annuity-based revenue, more profit and the ability to blend in their own services with the sale.
Tech Data has a full CSP programme in place, with sales, technical and marketing workshops running on a regular basis. It has already helped more than 300 partners get onto CSP and has a team of 10 staff dedicated to the scheme.