Microsoft Incentives 1 October 2020-30 September 2021

Craig Gordon
Categories:
Tags: Azure Plan CPOR Incentives Microsoft Incentives

Craig Gordon, Head of Vuzion, writes …

For any Microsoft CSP partner, getting to grips with the details of rebate and co-op incentives is essential.

Microsoft has just released incentive terms covering the year from 1 October 2020 to 30 September 2021, and I’m summarising in this blog post the key information. We’re holding a one-hour virtual training session on Tuesday 3 November 2020, at 11:30, Microsoft Incentives: What you need to know, in which we’ll be covering incentive information in detail - but this post will give you the basics.

Firstly, to be eligible, partners need to:

  • Have either Silver of Gold competencies (we can give you a list of relevant competencies)
  • Be enrolled in the CSP (Cloud Solution Provider) program
  • Have registered with Microsoft valid banking and tax information
  • Be enrolled in the relevant incentive program/s (see below).

To make navigating the incentive information easier, I’m covering the three main Incentives types available as follows - as:

  • Indirect Reseller Incentives
  • Modern Commerce for Azure Plan Incentives
  • OSU (Online Services Usage) Incentives.
Indirect Reseller Incentives

Microsoft incentives October 2020 - September 2021

Core Incentives

The earning split remains 60% rebate, 40% co-op, and allocates in summary, as follows -

  • Azure incentive remains the same as last year at 4%
  • Modern Work and Security’s also remains the same as last year, at 4%
  • Business Applications incentive has gone down from 6% last year to 4.75% this year - but please note, Microsoft is putting more money into customer add incentives and accelerators for some Dynamics SKUs.

Customer Add Accelerators 

The earning split remains 60% rebate, 40% co-op, and allocates in summary, as follows -

  • Modern Work and Security (with a minimum threshold of $250 USD) is 10%, (and equals 14% with the Core incentive)
  • Business Applications is paid at 20%

Global Strategic Product Accelerators

The earning split also remains 60% rebate, 40% co-op:

  • Microsoft has introduced two tiers for Strategic Product Accelerators:
    • Tier 1 - with a rate of 5%
      • Microsoft 365 E5, E3, BP (to equal 19% with the Core and Customer Add Accelerator)
      • Dynamics 365 Business Central
    • Tier 2 - a newly introduced tier, with a 10% incentive rate
      • Most PowerApps plans
      • Most Dynamics 365 Sales pro plans
  • PSTN Calling and Conferencing - with a rate of 20%
Azure Reservation

This is an incentive for Azure consumption and is received 100% rebate, with an incentive paid at

  • 10% 
Subscription software

This is an incentive calculated based on billed revenue from the sale of subscription software products Windows Server and SQL Server. Earnings are paid as 100% rebate - with the following terms:

  • Core 1.25%
  • Strategic 6%
Modern commerce for Azure Plan

Azure Plan is Microsoft’s new commerce platform created to streamline the buying experience for the customer, and support partners in providing the advice and guidance, along with value-add services, to help customers commit to Azure.

At Vuzion we’ve already moved most of our partners and our partners’ customers with existing legacy CSP subscriptions to this new commerce platform, to enable them to benefit from its advantages, including cost management - and we’re seeing a number of CSP partners coming to Vuzion precisely to be able to buy through Azure Plan.   

If you’re new to Azure Plan or would just like a bit more information about the platform, take a look at our eBook, Azure Plan. A summary of the Azure Plan incentives is below:

  • Azure Plan Reserved Instances - 10%
  • Azure consumption - 4%

The rates are the same as for the legacy Azure plan, but received 100% rebate rather than via a rebate/co-op split.

And with Azure Plan, to get these rebates you must be enrolled in the Modern Commerce Incentive program in partnercenter - and if you have any questions about enrolment, please give us a call and we can help.

OSU (Online Services Usage) Incentives

Microsoft’s Online Services Usage Incentive rewards partners for increasing the number of a customer’s active users, and usage of Microsoft 365 capabilities.

To claim OSU Incentives

  • Partners need to be registered to do so, and have associated themselves with their customers at workload level
  • Each incentive needs to be individually agreed with Microsoft and claimed in advance
  • Incentives are rewarded for products with 150+ users

Our eBook, CPOR (Claiming Partner of Record), gives full details of the Incentive plan.

Vuzion margin

And in addition to the incentives for which you’re eligible to receive for relevant products, there’s Vuzion’s margin to include!

It’s a complex business, understanding what you’re entitled to claim, and ensuring that you’re set up to be able to claim, and if you’d like more information, or some support and guidance for your business, we’re happy to help. You can contact any of the Vuzion team (0333 009 5939 or via partners@vuzion.cloud) - we’re here to help.

 

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