Azure CSP Subscription and Management Guide

As you set up your Azure CSP subscription, it's essential to understand the different types of subscriptions available. A CSP (Cloud Solution Provider) subscription is a special type of subscription that allows partners to sell and manage Azure services on behalf of their customers.

You can choose from a variety of subscription types, including Standard, Premium, and Enterprise. Each type has its own set of features and pricing.

To manage your Azure CSP subscription effectively, you'll need to set up the right roles and permissions for your users. This will determine what actions they can perform and what resources they have access to.

When you buy Azure through a Cloud Solution Provider, the Azure subscription belongs to you. This is crucial because it makes it easy for you to move the billing relationship for that subscription to a different Cloud Solution Provider without having to make any technical changes.

The Cloud Solution Provider creates the subscription under your existing Microsoft Tenant, unless you don't have one. This gives you full control over the subscription and allows you to grant access to it to other Partners or even to Microsoft directly, if you wish.

Historically, Cloud Solution Providers would often create a whole new Microsoft Customer and Tenant to "own" the Azure Subscription for technical reasons. However, this is no longer necessary and should be avoided.

You are not buying Azure directly from Microsoft when you buy through a Cloud Solution Provider. Instead, you are buying it from the Cloud Solution Provider, who is responsible for billing you for the Azure resources you use.

Microsoft will not bill you directly for those resources. The Cloud Solution Provider is responsible for collecting payment for any outstanding fees incurred.

As a pay-as-you-go service, partners only pay for the usage on services used inside a customer's subscription. There are no minimum purchases or commitments, and subscriptions can be canceled at any time.

Direct vs Indirect Partners is a concept that can sometimes confuse Azure CSP customers. A Direct Partner has a direct relationship with Microsoft and is invoiced directly by Microsoft.

Direct Partners have to sell a certain minimum level of Azure spend from customers each year. This is mostly a matter of volume, and it doesn't directly affect customers.

To become a Direct Partner, also known as a Tier 1 CSP Partner, is a lengthy and complicated process that can take upwards of six months. It requires several pre-requisites, including an active Microsoft Partner Network (MPN) ID and a robust billing mechanism.

Here's a brief overview of the requirements to become a Tier 1 Partner:

On the other hand, Indirect Partners have a relationship with an Indirect Provider who in turn has a relationship with Microsoft. The Indirect Provider is invoiced by Microsoft and invoices the Indirect Partner who invoices the Customer.

As you explore the world of Cloud Solution Providers, you may come across terms like "Direct" and "Indirect" that seem mysterious at first. A "Direct" Partner has a direct relationship with Microsoft and is invoiced for your Azure directly by Microsoft.

This direct relationship is a key distinction between Direct and Indirect Partners. In contrast, an "Indirect" Partner has a relationship with an "Indirect Provider" who in turn has a relationship with Microsoft. The Indirect Provider is invoiced by Microsoft and invoices the Indirect Partner who invoices the Customer.

Don't worry, this doesn't directly affect you as a Customer. It's mostly a matter of volume; Direct Partners have to sell a certain minimum level of Azure spend from Customers each year. This means that Direct Partners have to meet a certain sales quota to maintain their status.

Here's a quick summary of the key differences:

As you can see, the main difference between Direct and Indirect Partners is the way they are invoiced and their relationship with Microsoft.

A Direct Partner has a direct relationship with Microsoft and is invoiced for your Azure directly by Microsoft. This means they purchase Azure from Microsoft and then resell it to their customers at a margin.

To become a Direct Partner, also known as a Tier 1 CSP Partner, is a lengthy and complicated process that can take upwards of six months. There are several prerequisites to meet, including having an Active Microsoft Partner Network (MPN) ID, a robust billing mechanism, an active Microsoft support plan, and at least one service offering.

Typically, Tier 1 partners are larger enterprises that specialize in reselling their services or licenses. There are only a handful in each area, and in the UK, the main resellers for Azure are Rackspace, Bytes, Grey Matter, Softcat, and Ingram Micro.

Direct Partners have to sell a certain minimum level of Azure spend from customers each year, which is a matter of volume.

Here are the requirements to become a Tier 1 CSP Partner: