Microsoft CSP incentives changes FY20
03/07/2019

Big changes to Microsoft’s FY20 CSP reseller incentives

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.

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). 

- 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)

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.

Microsoft CSP incentive changes FY20

Customer acquisition for three clouds:

Microsoft CSP incentives changes FY20 

Next steps:

Microsoft CSP incentives changes FY20

Microsoft is making available support, as outlined above - and, of course, you’ll find additional support from the Vuzion team - call 0333 009 5931 and +353 1 685 6191 (for the Ireland team), or email partners@vuzion.cloud and partners@vuzion.ie.

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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