Direct vs. Indirect CSP: Choose the Right CSP Automation Platform for your Organization

You will consider two templates for CSP partnerships when performing preliminary research on becoming a Cloud Service Provider (CSP): Direct (Tier 1) and Indirect (Tier 2). You need to make sure that you know your preferences to choose between Direct and Indirect CSP to get the best match for your company. 

First, you need to go through the desires and needs of your company. Then you will be able to recognize which model is better matched with the priorities and for your organization. Keep on reading to learn what’s the variation between Indirect and Direct CSP. 

What is Microsoft CSP? 

The Cloud Service Provider (CSP) platform from Microsoft lets partners manage their end-to-end customer process completely. 

A CSP program aids Managed Service Providers (MSPs) and Value-Added Resellers (VARs) with additional assistance to sell Microsoft Windows and Cloud Service licenses so you can get more engaged with your customer base. Here guarantees that any cloud-based solutions from Azure to Office 365 be able to resell at a price you set to your customers.  

The CSP program helps directly or indirectly manage and back customer subscriptions. It improves your networks and allows your customers to be more engaged by raising incomes and allows greater control of your assets. 

Direct and Indirect CSP: Learn the differences? 

The CSP Program has two models: Direct and Indirect. You must choose between the two if you want to use CSP. To understand which model is best for the needs of your business, you need to understand each of its exceptional advantages. Let's look at it: 

Direct CSP  

To become a Direct CSP partner means partnering with Microsoft directly. Essentially, you'd be buying and selling to your customers from Microsoft. Though the Direct CSP system has some conditions that might change your choices to take this course as not everyone who tries to go direct is eligible. 

For example, it takes about four months to complete becoming a Direct CSP, which is something to remember if you are ready to enter the market. In most countries, instead of authorizing more, Microsoft is proactively reducing the number of current Direct Partners. One More bonus factor is that Microsoft needs direct partners to buy and keep an Advanced Support Agreement, so you should be prepared to assist your clients.

Registered collaborators also need to create their IP around the cloud of Microsoft. To order to manage the complexities of CSP, joint CSP members must also set up a specific consumer billing system. There are also requirements of minimum annual sales to be met to maintain the position of Direct CSP affiliate. 

Indirect CSP

Sales are generally a much faster process than direct CSP through an Indirect CSP system. Since you're not working with Microsoft straight, your company can get to market sooner. Indirect CSP Providers are needed to serve you as a reseller by providing you with the necessary tools and portal to initiate orders, licensing & billing. While Direct CSP involves you to buy your SKUs from Microsoft, you would have to work with an indirect CSP to buy them from a CSP provider. With a profit margin of your choosing, you could sell to consumers. While with an Indirect CSP, you can get to market quicker, this type of program allows you to scale at your desired rate.

By having to meet specific guidelines or margins, you will be able to learn the ins and outs of the Microsoft cloud suite. Plus, you will have an established support infrastructure along the way if you sell by Indirect CSP. Through Indirect CSP, you can still get benefits right away from Microsoft also your revenue acknowledgment will be taken for Microsoft Partner status. Providers of Indirect CSP also have corresponding services and Internet Protocol that let you create a stronger customer experience over the long term. 

Queries to find out which is Best to Your Company  

As you are aware of the variations between Direct and Indirect CSP, you will figure out which queries will lead you to the finest match for your business. Some queries you have to ask yourself include:  

How much technical assistance will I provide? 

Going Direct would allow you to provide technical assistance 24/7. With the help of Indirect CSP, you can collaborate with a CSP provider who can assist you in providing customer support. 

How fast do I want to go to the marketplace? 

Direct CSP requires more time to get off the ground because other criteria must first be in position. Indirect CSP will allow you to cut off on the pursuit and move you out of the gate on the marketplace. Also, as mentioned above, there are resources and infrastructure that you need to have in place to manage a direct partnership. 

Would I like to bill directly via an automated platform? 

You will bill consumers directly through a fee system of your opting via Direct CSP Programs. 

How do I cope with my licenses? 

The Microsoft Partner Network allows direct CSP services to handle their licenses manually. You'd have to handle licenses through your CSP distributor's site if you're trying to go indirect. 

Does Microsoft choose one configuration over the other? 

No. Microsoft acknowledges fair consideration of both product models and weighs the same revenue recognition. 

Choosing a CSP Partner 

Cloud Assert's Cloud Service Provider platform may be the right fit for you to move forward with Direct & Indirect CSP. If speed to market is of value to your company, Cloud Assert can help speed up the deployment process. Faster onboarding ensures that you will have more period to formulate and match your business goals with your current plan. 

Cloud Assert has a dedicated team of experts willing to support the company. For years, Cloud Assert has worked with Microsoft, making us confident to implement our wealth of knowledge into your CSP strategy.

Register here to speak with our experts and see our products in action.