Direct CSP vs Indirect CSP - which Microsoft CSP Partner type is right for your business and where to start?

Direct CSP vs. Indirect CSP Resellers

The Microsoft Cloud Solution Provider (CSP) program offers two distinct models for resellers: direct and indirect. Understanding the differences between these models is crucial for businesses looking to become CSP resellers.

Direct Bill Partners or Direct CSP Resellers

As a direct reseller, you have a direct contractual relationship with Microsoft. This means you purchase cloud services directly from Microsoft and manage the entire customer lifecycle, including billing, support, and customer relationships. Direct resellers have full control over pricing, bundling, and service offerings, allowing for greater flexibility and customization.

To become a direct reseller, you must meet specific requirements set by Microsoft, such as technical certifications, sales capabilities, and customer support infrastructure. This model is often preferred by larger organizations with established IT resources and a strong customer base.

Indirect Partners or Indirect CSP Resellers

Indirect resellers, also known as partners or advisors, work through an indirect provider or distributor. These providers have a direct relationship with Microsoft and act as intermediaries between Microsoft and the resellers. Indirect resellers purchase cloud services from the indirect provider and resell them to their customers.

This model offers several advantages, including simplified onboarding, access to additional resources and support from the indirect provider, and reduced overhead costs. Indirect resellers can leverage the expertise and infrastructure of their provider, allowing them to focus on sales, marketing, and customer service.

First, start with these steps

1. Determine the region for which you want to resell Microsoft Cloud Services and that should align with the location of your business. Find out the CSP regions from here
2. Find an Indirect Partner of Microsoft CSP Program from here
3. Enroll with the partner and start reselling
4. Optionally setup end-to-end automation tools such as Hybr for CSP

Next, Evaluate After USD $300K of annual revenue achieved

If you have higher ambitions and got the knowledge and expertise, team to handle customers, got a setup of whitelabled portal for your business leveraging platforms such as Hybr, then you can enroll for Direct Partner relationship.

However if you are still enjoying the TLC from the Indirect Provider, you could continue with the provider, and still leverage platforms such as Hybr for CSP to integrate with Microsft CSP via the Indirect Provider (supported out of the box) but expand your horizons beyond the CSP program, such as to offer your own packaged solutions and value added services, and bill them all from single platform.

Conclusion: Choosing the Right Model

The choice between becoming a direct or indirect reseller depends on your business goals, resources, and capabilities. Direct resellers have more control and flexibility but require significant investments in infrastructure, technical expertise, and customer support. Indirect resellers benefit from a lower barrier to entry and access to additional resources, but they may have less control over pricing and offerings.

Smaller businesses or those new to the CSP program may find the indirect reseller model more suitable, as it allows them to leverage the expertise and support of an established provider. Larger organizations with existing IT resources and a strong customer base may prefer the direct reseller model for greater control and customization.

Ultimately, the decision should be based on a careful evaluation of your business needs, resources, and long-term goals within the Microsoft CSP program.