Big changes to Microsoft’s FY20 CSP reseller incentives

Alex Albu
Categories:
Tags: Azure Incentives Microsoft Microsoft 365 Office 365
SUR19_Hub2S_Contextual_006_RGB1-min

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.
vuzion-microsoft-incentives-1

Customer acquisition for three clouds:
vuzion-microsoft-incentives-2
Next steps:
vuzion-microsoft-incentives-3

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!



Related Articles

Azure reservations monthly payment now available

Customers can now opt to pay for Azure Reserved Instances monthly, while taking advantage of the same discount previously offered on...

Microsoft 365 | August 2019 Update

August saw many new updates for Microsoft 365, all aimed at making this powerful solution better in terms of productivity, collabora...

Microsoft Azure | August 2019 Update

With the latest August updates, Microsoft has added even more capabilities to the system, offering users more significant support, i...

The massive Windows 7 migration opportunity

Millions of users are still running Windows 7 with less than 5 months until the operating system reaches end of support, 14 January...