What is a CSP? Microsoft Cloud Solution Providers 101

Finally—you’ve received approval from your CFO to go ahead with a major IT infrastructure upgrade. You’re excited to transition to the cloud and leverage Microsoft’s suite of software and services to bring your business technology up to speed. But when you reach out to Microsoft to get going, you’re directed toward the Microsoft Cloud Solution Providers (CSP) program. If your business has purchased Microsoft software and services before, you may have experienced this already. If not, here’s what you need to know. 

In this article, we’re breaking down the basics of the Microsoft CSP program, giving you insight into what it is, why you need it, and how it works. We’ll cover: 

• What is a Microsoft CSP?

• Benefits of working with a Microsoft CSP 

• How the Microsoft CSP program works 

What is a Microsoft CSP?

A Cloud Solution Provider (CSP), in the context of Microsoft, is an authorized partner who provides a range of Microsoft cloud services. These partners serve as intermediaries between Microsoft and customers, offering tailored solutions and value-added services alongside the core Microsoft products.

A Microsoft CSP specifically deals with Microsoft's cloud services, such as Azure and Microsoft 365. These providers help businesses implement and manage their cloud solutions, ensuring that the technology aligns well with business needs and compliance requirements. Here at IX Solutions, for example, we are CSPs that leverage Microsoft products in both our project-based professional IT services and our ongoing managed IT services. 

Benefits of working with a Microsoft CSP

Working with a Microsoft CSP is what truly leads to success in the cloud. Think of it this way: you can purchase gourmet ingredients at the store—but without the right recipe and culinary skills, those high-quality ingredients alone won't create a standout dish. Similarly, while you can acquire advanced cloud technologies, a CSP provides the knowledge, tools, and techniques needed to maximize their value and ensure your investment pays off.

Here are just a few benefits of working with a Microsoft Cloud Solutions Provider: 

1. Customized solutions: CSPs can tailor Microsoft's generic cloud offerings to fit the unique needs of your business, integrating services and applications into a cohesive system. It’s unlikely that out-of-the-box technology will work the way you want it to—it needs to be fine tuned to your needs.

2. Cost efficiency: By optimizing resource usage and scaling services according to demand, CSPs can help reduce your overall IT costs. They do this by consolidating your cloud services—whether public, private, or hybrid—into a single invoice, streamlining your expenditures and eliminating redundancies and overlaps in service. This not only simplifies financial management but also ensures you are only paying for the resources you need.

3. Local support: If you’ve ever tried to resolve an issue with Microsoft directly through their support services, it may have felt a bit like a maze—simply because of the size of the company and standard procedures. CSPs often provide more personalized, localized support compared to direct support from Microsoft, helping resolve issues more quickly and effectively.

4. Simplified billing: Dealing with multiple subscriptions and billing cycles can be complex and time-consuming. Getting a single, consolidated invoice from your CSP simplifies the accounting process, reducing the administrative burden and the likelihood of errors. It makes it easier to track expenses and manage budgets because all costs are centralized.

5. Enhanced security: CSPs can offer additional security measures and compliance assistance to protect your business and reduce risk. They do this by implementing advanced security tools, conducting regular audits, and ensuring adherence to industry standards. Through tailored security policies, continuous monitoring, and immediate incident response, you’ll significantly strengthen your overall security framework. 

Can’t I just buy from Microsoft directly?  

Yes, and no. There are mixed responses online about whether businesses can buy cloud solutions directly from Microsoft. This is because of changes made in 2022 around how Microsoft licenses and sells its products. Here’s a breakdown: 

1. Open License Program transition: As of January 1, 2022, Microsoft closed purchases for software licenses and online services through their Open License purchasing program. This program has transitioned to the CSP program, aiming to simplify the purchase experience and provide small to midsize businesses with more tailored services needed to be successful through CSP partners.

2. Direct purchases from Microsoft: Despite the transition for the Open License program, businesses can still purchase certain Microsoft cloud services directly, especially for larger enterprises or specific services not covered under the CSP program. This includes direct purchases through the Microsoft website or Azure portal, particularly for services like Azure cloud services or Microsoft 365 subscriptions, which are often available directly to consumers and businesses without the need for intermediary partners.

3. Role of CSPs: For many small and midsize businesses, the recommended path is now through CSPs, who offer not just licenses but also additional support and services that can be crucial for effectively using Microsoft’s cloud solutions. CSPs are ideal for businesses looking for a package that includes ongoing support, customized solutions, and help with managing complex cloud environments.

In summary—yes, you can buy Microsoft solutions directly. But unless you’re an enterprise business, it’s recommended that you work directly with a CSP. 

How the Microsoft CSP program works 

When working with a Microsoft Cloud Solution Provider, here’s what you can expect in terms of interaction and services provided:

1) Initial consultation and assessment

1. Needs analysis: Your CSP should begin by conducting an assessment of your current IT infrastructure and understanding your business objectives. This involves identifying the gaps in your current setup and how Microsoft’s cloud solutions can be leveraged to meet your strategic goals.

2. Solution design: Based on the assessment, the CSP will design a customized solution that aligns with your business requirements. This may include a combination of various Microsoft products and services, such as Microsoft 365 for collaboration, Azure for cloud computing, and Dynamics 365 for customer relationship management.

2) Implementation and migration

1. Setup and configuration: Your CSP will handle the entire setup and configuration of the chosen cloud services. This includes ensuring that all services are properly integrated and optimized for your business environment.

2. Data migration: If you’re moving from an on-premises solution to the cloud, the CSP will manage the migration process, ensuring that your data is securely transferred and that there is minimal disruption to your team.

3) Ongoing management and support

1. Proactive monitoring: CSPs often provide continuous monitoring of your cloud services to ensure optimal performance and to preemptively address any issues that might arise.

2. Regular updates: Your CSP will manage updates and maintenance, ensuring that your services are always up-to-date with the latest features and security patches.

3. Support services: CSPs typically offer a range of support services, which can include 24/7 technical support, user training, and troubleshooting. This support is more personalized than what you would receive directly from Microsoft.

4) Strategic business support

1. Scalability and flexibility: As your business grows or your needs change, the CSP can adjust your services to meet these evolving requirements, helping you scale up or scale down as needed.

2. Compliance and security: CSPs can provide expertise in meeting industry-specific compliance and security standards, helping to ensure that your cloud solutions adhere to regulations.

3. Innovation and advisory: Many CSPs offer advisory services to help you understand and implement new technologies. This can include guidance on best practices, insights into emerging tech trends, and recommendations on how to further improve efficiency and performance.

5) Billing and administration

1. Consolidated billing: Instead of dealing with multiple subscriptions and services, you receive a single invoice from your CSP, simplifying the financial management of your cloud services.

2. License management: Your CSP will manage all aspects of Microsoft solutions licensing, ensuring you aren’t under or over-licensed.

6) Review and optimization

1. Performance reviews: Your CSP might perform periodic reviews to assess the performance of the cloud services and their impact on your business operations. Based on feedback and performance data, they might suggest improvements or additional services to better meet your business needs. 

Working with a CSP is like having an extension of your own IT department—where the CSP acts as a strategic partner that not only delivers technical solutions but also contributes to your business growth by optimizing technology and productivity.

The two types of Microsoft CSP models 

The CSP program is designed to be flexible, catering to a wide range of business needs through two primary models:

1. Direct Model: In this model, the CSP deals directly with Microsoft and the customer without any intermediaries. This is suitable for providers who can manage end-to-end customer engagement, including billing, support, and solution deployment. This is how we operate at IX Solutions, granting our customers personalized, hands-on support. 

2. Indirect Model: Here, CSPs partner with larger distributors who manage the relationship with Microsoft. This model is ideal for companies that have strong customer relationships but may not have the team or infrastructure to handle all aspects of service delivery and support directly.

Searching for a right-fit Microsoft CSP? 

If you’re navigating the Microsoft landscape and feeling a bit lost, unsure of where to begin, IX Solutions has your back. We are certified Microsoft Gold Partners, and our team specializes in leveraging Microsoft solutions and services to create optimal, efficient IT environments for our customers. Sound like a great fit?