01732 759725 CHANNEL 06 testing can ensure continuity across systems and support channels. Transparent communication also plays a vital role in managing customer expectations and making the change feel seamless. For partners that start early, the transition becomes less about compliance and more about unlocking new opportunities. The strategic opportunity MSPs facing this change should ask themselves not just how to migrate, but what the benefits of doing so might be. What does the move free them up to do? How can it help them simplify operations, reach new markets or grow faster? What ‘value-add’ will they be able to deliver when they’re no longer buried under manual admin or escalating support cases? It’s also a chance to revisit their Microsoft offering. Are there bundles they can now deliver more easily? Are there enablement resources or tools that can strengthen their market offering? The indirect model, when done right, can be a springboard for broader transformation. Why your choice of indirect provider matters Not all distributors are created equal. For partners moving from direct to indirect, the experience will depend heavily on the support, systems and culture of their chosen provider. At Giacom, we’ve helped many former direct partners make the switch. What they find is a UK-based support model, a unified marketplace for Microsoft and other solutions (cloud, connectivity, mobile, hardware) and a partner-first philosophy focused on enablement, not just transactions. This CSP change doesn’t need to be disruptive. With the right support, it’s an opportunity to grow and build a more resilient Microsoft practice. Whether you are hesitant about the move or simply unsure where to start, find out how we can help at https://giacom.com/becomea-microsoft-partner/. Some may see this as a loss of control. In reality, it often has the opposite effect. Good distributors provide responsive, local support teams that understand the partner’s business and act as an extension of their team. The best also offer proactive advice and best practices, helping MSPs prevent issues, not just react to them. Crucially, indirect partners working with well-connected distributors often gain more influence within Microsoft’s ecosystem, especially those that previously had little visibility or engagement as unmanaged direct partners. Incentives, insights and influence When it comes to incentives, there’s no loss in switching. Both direct and indirect partners have access to the same core Microsoft rebate programmes. In fact, working through a distributor can make it easier to unlock and track earnings, with additional incentives layered on top by the distributor itself. What does change is the way information and enablement flow. Indirect partners often benefit from curated, actionable updates on Microsoft changes instead of having to wade through a mire of corporate communications. Distributors with seats on partner councils or close working relationships with Microsoft can also share roadmap insights and raise feedback on behalf of their partners. Co-selling is another area where indirect can add value. A strong distributor can act as an advocate, making introductions, advising on go-to-market strategy and aligning its efforts with Microsoft’s own sales priorities. Managing the migration From a technical perspective, moving from direct to indirect isn’t always straightforward. Migrating tenants and subscriptions without disruption requires planning, especially when customer billing is involved. But with the right support, the process can be smooth and low-risk. Structured onboarding is key. Dedicated teams, clear project ownership and thorough Microsoft’s recent changes to its Cloud Solution Provider (CSP) programme are set to cause upheaval across the channel, particularly for smaller MSPs that currently operate under a direct agreement. From 1st October 2025, the minimum revenue threshold to remain a direct CSP will more than triple, from just over $300,000 to $1 million, forcing many partners to rethink their relationship with a vendor they’ve long relied on as the foundation of their cloud and IT offerings. For some, the shift to an indirect relationship may feel like a setback. But we would argue that it presents a golden opportunity to simplify operations, reduce overheads and unlock new avenues for growth – if it’s approached with the right mindset and the right partner. Beyond billing The most immediate change for direct CSPs moving to an indirect model is likely to be operational. Tasks like invoicing, reconciliation and subscription management – once handled in-house – are typically absorbed by the distributor. Rather than building and maintaining custom billing systems, partners gain access to unified platforms that automate provisioning, reporting and support. This reduction in administrative burden gives MSPs some much needed breathing space. It means more time to focus on what really matters, such as customer service, go‑to-market planning and proposition. With less overhead and more agility, MSPs can scale faster and more sustainably. Rethinking support and control One of the most misunderstood aspects of the change is support. Direct partners are required to maintain an Advanced or Premier Support plan, an expensive global service that can feel impersonal. Under the indirect model, support is delivered by the distributor, which funds and manages the Microsoft contract on behalf of its partners. Oliver Gardner, Head of Microsoft Alliances at Giacom, argues that far from being a setback, imminent changes to Microsoft’s CSP programme are an opportunity for many MSPs to simplify operations and reduce overheads The million-dollar question: what does Microsoft’s new threshold really mean for your business? Oliver Gardner
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