Step 1: Verify Minimum Eligibility Requirements
Before starting the enrolment process, ensure that your organization meets the following essential criteria:
  • Microsoft AI Cloud Partner Program Membership: Your company must be a member of the Microsoft AI Cloud Partner Program with a PartnerID for the location where you plan to sell Microsoft products.
  • Legal Authority: You must have the legal authority to sign agreements on behalf of your organization, which includes accepting Microsoft’s terms and conditions.
  • Cloud Support Capability: Your organization needs to provide the first level of cloud product support for customers. This includes having a Microsoft support plan, such as Advanced Support for Partners (ASfP) or Premier Support for Partners (PSfP), based on your business needs.
  • Revenue Requirement: To qualify as a Direct CSP, your organization must have at least USD 300K in annual revenue from the Cloud Solution Provider (CSP) program within the last 12 months, as an indirect reseller. Microsoft will review and verify this revenue and may request additional documentation.
  • Experience as an Indirect Reseller: You must have been an indirect reseller for a minimum of 12 months before applying to become a Direct CSP partner.
  • Accounts Receivable: Ensure your organization has robust systems for managing customer billing, provisioning, and support. RackNap can simplify this process with automated billing and provisioning solutions tailored for Microsoft services. Also available on the Azure Marketplace, RackNap streamlines account management, making it easy to handle billing cycles and service provisioning efficiently.
  • Capability Standards: Microsoft requires that you meet minimum standards for billing, provisioning, customer support, and security. These standards are verified by a third-party assessment, which Microsoft will arrange once revenue and tenure requirements are met.
  • Managed Service: You need to offer at least one managed service, IP service, or customer solution application.
Step 2: Start the Enrollment Process
Once you confirm that your organization meets the minimum eligibility criteria, proceed with the enrollment process:
Fill out the Enrollment Application: Begin by filling out the Microsoft Direct CSP application form. This will require you to provide business information and demonstrate that your organization meets the eligibility standards.
Verification and Approval: After submitting your application, Microsoft will review your company’s business information, including verifying your credit. This may take some time, and you’ll be notified by email once your company passes the credit check. You’ll also receive an approval email confirming your enrollment as a Direct CSP partner.
Important Notes:
Transitioning from direct to indirect reseller
Direct-bill partners must meet the minimum requirements to remain in the Direct CSP program. If these requirements are not met, access to Direct CSP features may be restricted, and certain tasks like making new purchases for customers will be disabled.
However, if at any point you decide that direct billing is not ideal, Microsoft offers a pathway to transition from a direct-bill CSP to an indirect reseller.
To become a Microsoft Direct-Bill partner, you must have at least USD 300K in annual revenue from the Cloud Solution Provider (CSP) program over the past 12 months as an indirect reseller. If you want to transition to an indirect reseller, you can either use your existing direct-bill tenant (once it enters a Restricted status) or create a new tenant. After enrolling as an indirect reseller, you can reapply to become a Direct-Bill partner once you meet the necessary requirements, using a new tenant.
To transition, ensure your partner profile and PartnerID are updated in Partner Center, sign in as a Global admin, and follow the steps to enroll in the indirect reseller program. Upon approval, which may take up to five business days, you’ll need to accept the Indirect Reseller Agreement, after which your profile will reflect both direct-bill and indirect reseller statuses. Make sure to evaluate your business needs thoroughly before making the transition.
Ensure to be ready for new updates:
Microsoft has recently introduced the annual commit – monthly payment subscription model. You must have tools and processes in place in order to deliver and manage services in accordance with the new updates.
Important Note for Validation:
Details shared here are based on publicly available data. You are advised to connect with Microsoft team to validate the process and check recent updates.