The journey to the cloud is paved with good intentions. But to make the cloud’s promise real, businesses need to put it at the core of their operations. And this is where difficulties arise. After all, almost everyone is migrating to the cloud. But putting the technology to work once the migration is over creates a new set of bottlenecks for businesses worldwide.
Microsoft understands this. They understand the value of the cloud and the importance of working with a cloud ecosystem that supports the technology across its value chain. That’s why they developed the Cloud Solution Provider program — to help their customers unlock the operational and financial benefits warranted by the cloud.
To grasp the full value of Microsoft’s CSP program, let’s delve deeper into the cloud spectrum and uncover the most important aspects of partnering with Microsoft as they realize their cloud vision.
From Cloud Migration to Cloud Management
The cloud is inherently different from on-premise legacy systems. As a result, it requires a different mindset in the management process. So businesses need to adjust in order to make the cloud work for them. If they don’t have all the information, the cloud could actually add another layer of complexity to their operations and undermine the business case that actually triggered the move to the cloud in the first place.
And this is where cloud management comes in. It handles the products and services derived from cloud computing through public cloud service providers or third-party cloud management tools.
By definition, cloud management is different from cloud computing. If the latter provides the rules, the former carries them out. In all, cloud management is a mix of software, automation, policies, governance, and people that distribute the cloud computing services as needed.
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Enter: Cloud Solution Providers
Once the journey to the cloud becomes a business priority, companies must select a cloud service provider. This is a third-party company that provides a cloud-based platform as well as infrastructure, application, or storage services. The pricing for such solutions typically depends on the number of cloud services they use, as required by their business priorities.
In addition to this service, cloud service providers provide a host of other opportunities — they allow businesses to scale with ease, they provide additional flexibility, customization according to the business needs, and fast response to shifting demands.
However, not all cloud service providers are created equal. Besides their features, prices, and benefits, companies need to consider other aspects as well if they want to fully reap the benefits of the cloud. After all, cloud management is not a ‘one and done’ endeavor. They need a long-term partner that will unlock the cloud capabilities across the organization. Here is what businesses should have in mind, as outlined by Microsoft:
- Financial health. The provider of choice should have a solid financial position that will allow it to operate without interruptions in the long run
- Organization, governance, planning, and risk management. In other words, it should operate with a formal management structure, have proper risk management policies in place, and a formalized process to assess third-party service providers and vendors.
- Trust. This could extend from the company’s operating principles to its experience and expertise. To assess if a prospect provider fits the bill, check its reputation online, identify its partners, read reviews, or consult other similarly-positioned customers.
- Business knowledge and technical know-how. Any provider should be able to understand business goals and have the technical expertise to drive them to fulfillment.
- Compliance audit. Each provider should meet compliance requirements and agree to a third-party audit.
In addition to this, CSPs need worldwide capabilities if they want to operate without borders. According to Microsoft, the CSP program is confined to the partner’s location. So for example if they are located in Canada, they can sell CSP offers to clients in Canada and Saint Pierre and Miquelon. If they are located in India, they can sell to clients in the Indian market. And so on.
But if CSPs partner up with a global partner, their location does not have to determine their market. They can operate across borders, grow their business, and establish a solid local presence. Contact The Partner Sales if you want to learn more about this opportunity.
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The Microsoft Cloud Advantage
Microsoft has a robust cloud offering. In fact, it has been recognized as a leader on the market due to its ability to execute on the cloud vision. And in order to extend its cloud capabilities, Microsoft introduced the Cloud Solution Provider (CSP) program. If this is news to you, here is everything you need to know about the program.
What Is Microsoft CSP?
The Microsoft Cloud Solutions program allows Microsoft partners to manage the Microsoft cloud customer lifecycle by providing them the tools they need in order to provision, manage, and support customer subscriptions. As a result, Microsoft partners manage the end-to-end relationship with Microsoft’s customers and become trusted advisers in their cloud journey.
How Does It Work?
Microsoft partners have to choose at least one of the two versions of the CSP provided by Microsoft:
- The direct model: Microsoft partners work directly with clients
- The indirect model: Microsoft partners work directly with resellers that are in direct contact with customers
In addition to the distribution differences, the direct model requires Microsoft partners to operate with an infrastructure that warrants end-to-end ownership of the customer relationship. For a lot of partners, this approach is not feasible. That’s why most of them opt to work with resellers that have the tools and expertise needed to provide great customer experiences.
Is It a Licensing Program?
Yes, but it goes beyond that. Microsoft partners operate under a CSP license and are expected to provide 24/7 support to their customer base in case of severe events. In return, they charge a monthly subscription fee for software and services.
Where Does Microsoft Come In?
Microsoft owns the cloud software solution. Its cloud subscriptions are managed by its partners that provide support for the customer base. But ultimately, Microsoft is the entity that establishes the conditions for use. One of them is the Defined Region requirement that binds partners and resellers to the same defined region, such as the United States or EU countries.
How Does the Microsoft CSP Pricing Work?
Microsoft customers provide monthly invoices to the Microsoft partners. In turn, Microsoft partners pay a cloud subscription with Microsoft, directly or through a reseller in the case of indirect CSPs. Some Microsoft partners might require a mandatory 12-month commitment before allowing customers to opt out of a subscription. In spite of this, they provide clients with the added flexibility to alter their subscription every month, based on the services they need.
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Curious for More?
The move to the cloud is not going to slow down any time soon. In fact, with most companies already there, CSP providers will be in increasing demand as they support an ever-growing pool of clients.
The good news is that Microsoft allows their partners to own the client relationship. With a simple login process, its CSP Program provides access to an ever-growing database of tools and resources.
But what could help you accelerate your CSP mission would be to partner with a trusted advisor that helps you generate more business opportunities. Intrigued? Contact us and find out how we help CSP providers take their business to new heights.
