Big changes to Microsoft’s FY20 CSP reseller incentives

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Tags: Azure Incentives Microsoft Microsoft 365 Office 365
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Craig Gordon, Head of Vuzion, writes …

Microsoft has announced changes to their FY20 incentives for CSP resellers - and there are some big changes.

The main points are that:

  • All rebates will now be paid monthly (45 days after month end), rather than some being paid monthly, and others at end of term/year-half.
  • 40% will now be co-op based – and partners will need to claim these in Microsoft Partnercenter, to request this money for business growth activities.
  • There is a far greater earning potential on Microsoft 365 SKUs.
  • There is huge earning potential for adding new CSP clouds (Azure, Dynamics, Modern Workplace) into customers.

Key changes:

  • The core Azure, Office 365 and Microsoft 365 incentive is being reduced to 4% in Q2.
  • There is an increase to 5% for Product Accelerators in Q2 (Office 365 Business Premium, Microsoft 365 E3, E5 and Business, two E5 mini suites, Dynamics 365 Business Central). 
  • NEW Azure modern commerce transactions incentive is 6%.
  • Customer acquisition accelerators – add Azure, Dynamics or Modern Workplace into a customer of the first time and gain between 4-20% incentive starting October (see table)

Other changes:

  • Azure Reserved Instance is staying at 10% incentive.
  • There are third party offers of 10%.
  • Software in CSP - this remains the same at 2.5% and 6%.  
  • There will be a 60/40 split between rebate and co-op from Q2.
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Customer acquisition for three clouds:
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Next steps:
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We advise you to follow these four steps:

1. Review the detailed partner incentives guide.

2. Ensure you’re meeting competency requirements.3. Focus and plan on providing multi-Microsoft cloud solutions to your customers, and partnering with an Indirect Provider with the support and access to the marketplace that provides - and Vuzion is best for that!

4. Plan for the changes in core margin and co-op - and, again, Vuzion can help!



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