Microsoft announces CSP incentives for H1 and H2, FY19

Categories: Business Transformation
Tags: Cloud Solution Provider Microsoft Azure Microsoft Dynamics 365
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Craig Gordon, Head of Vuzion, writes …

 Craig GordonAre you claiming your Microsoft rebates? Do you want to claim your Microsoft rebates?

Microsoft provide both global and local incentives to support CSP resellers and drive reseller growth and profitability. These incentives build on the initial upfront margin provided by Vuzion and are designed by Microsoft to drive sales of their strategically important services.

Azure, for example, remains the key investment area for Microsoft and attracts very generous incentives.

However, the incentives can be complicated to navigate, and so we’ve outlined the main points of the FY19 incentives below.

To help, I’ve summarised the incentives – please see the table below:  

incentives 1

And for a little more detail:

Global Incentives

Global incentives are now paid monthly (45 days after the end of the month) – i.e. rebates for July 2018 will be paid 15 September 2018.

Incentives 2

*Such as EMS, Windows Intune, CRM Online, Dynamics Cloud offerings, and Azure

Global product specific

All based on billed revenue 

Incentives 3

Please note, the Azure new customer adds incremental accelerator is capped at $4,000.

Removed incentives from FY18

Last year the focus was on promoting Office 365 Business Premium, E3 and E5. The emphasis for this year (FY19) is Microsoft 365 and Dynamics 365, and therefore the 3% accelerator for Office 365 Business Premium, E3 and E5 has been removed.

Local Accelerators 

Local incentives are paid at the end of their relevant period.

Cloud Revenue accelerator

Incentives 4

Paid at end of the offer period - 90 days

This accelerator means that each reseller can have their first two months on Azure completely free of charge, for all customers, but capped at $15,000 total per reseller.

Product Specific accelerators

Incentives 5

Eligibility for Microsoft incentives

There are two prerequisites to qualify for these incentives:

  1. To have a MPN (Microsoft Partner Network) account with an up-to-date profile  
  2. To have attained and maintained at least one relevant active competency for the solution(s) area. Resellers are only eligible for the incentive for the area in which the competency is held – and, so, if you sell both Azure and Office 365, for example, you should typically hold at least one competency for each e.g. Cloud Platform and Cloud Productivity.

The table below gives the competency levels required for various Microsoft products:
Incentives 6

Onboarding

Once qualification criteria above is met, you need to complete your incentive onboarding:

  1. You should receive an invitation from the Microsoft Operations team.
  2. You then need to onboard into the Partner Incentive Experience (PIExp) – please note, that onboarding will shortly be through Partner Center instead.
  3. Complete your bank and tax details! This might seem an obvious step – but quite often, overlooked – and without it, Microsoft cannot pay you your owed incentives!

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