Microsoft Introduces New Annual Revenue Requirement for CSP Indirect Resellers from April 2024

October 2, 2023 Microsoft Partner News

In a recent announcement, Microsoft has introduced a new annual revenue requirement for Cloud Solution Providers (CSP) indirect resellers. Effective from April 1, 2024, indirect resellers will need to generate a minimum of USD1000 in trailing 12 months (TTM) CSP revenue, including Perpetual Software, at the reseller tenant level in each of the CSP regions they operate in. This requirement is to be met annually on the reseller's tenant onboarding anniversary date to maintain their authorization to transact as a CSP.

It's important to note that this requirement is applicable only to CSP indirect reseller tenants that have been authorized for at least one year. This move is part of Microsoft's ongoing efforts to boost revenue growth and enhance the sales and product expertise, solutions and services delivery, compliance, security protocols, and support skills of its CSP partners.

To ensure a smooth transition, Microsoft will start notifying indirect resellers and their indirect providers 90 days in advance of the reseller's onboarding anniversary month, starting from January 2024. This advance notice will be given if the indirect reseller is not meeting the revenue requirement, thereby providing an opportunity for the indirect reseller and their indirect provider(s) to collaborate and meet the requirement.

If an indirect reseller fails to meet the minimum revenue requirement, both the reseller and their indirect provider(s) will receive an enforcement notification during the reseller's onboarding anniversary month. The notification will inform them that the reseller will be deauthorized from selling with indirect providers if they have less than USD1000 in TTM CSP revenue associated with the reseller's tenant. Following deauthorization, the reseller will have to wait for at least one year before they can reapply for indirect reseller status.

As we move towards this new requirement, it's crucial for indirect resellers to connect with their indirect provider(s) and work together to meet the revenue requirement by April 1, 2024. Microsoft will also provide guidance to resellers on how to confirm their TTM revenue in advance of enforcement.

For more information about the new minimum indirect reseller revenue requirement, Microsoft has provided a detailed page on the revenue requirement for CSP indirect resellers. If you have any questions or concerns, we recommend reviewing this page for further clarification.

At Qloud Blog, we are committed to keeping you updated with the latest developments and changes in the cloud solutions industry. Stay tuned for more updates and insights.

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