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.
- Partners now have new competency requirements to fulfil - details of these can be found on the Microsoft competency pages
- 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.
- 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).
- A 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)
- 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.
Customer acquisition for three clouds:
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!