University of Kwazulu-Natal

Microsoft Csp Changes In 2025 What Partners Need To Know Especially

Bonisiwe Shabane
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microsoft csp changes in 2025 what partners need to know especially

Microsoft has announced major updates to its Cloud Solution Provider (CSP) program that will raise the bar for partner eligibility and performance starting October 1, 2025. These changes affect Direct Bill CSP partners, Indirect Resellers, and even Distributors, introducing stricter requirements and new opportunities. According to Microsoft Chief Partner Officer Nicole Dezen, all the updates are “designed to fuel growth in the small and medium enterprise customer segment through our partners,” ensuring customers have “the utmost confidence that... In this blog, we’ll break down the Microsoft CSP program changes, explain what they mean for partners, and discuss how you can adapt and thrive with the right strategy and support. (Spoiler: A specialized indirect provider like Stratos Cloud Alliance can make a big difference.) Microsoft’s new CSP program requirements introduce higher performance thresholds and validations for partners.

Here’s an overview of the key changes coming in FY26 (effective Oct. 1, 2025): If you are a Direct Bill CSP partner (meaning you buy licenses directly from Microsoft and bill customers yourself), the bar is about to get much higher. Key changes include: What happens if a direct partner fails to meet these criteria? Microsoft has made the consequences clear.

Partners who fall short by the deadline will lose their CSP authorization, undergo off-boarding and deauthorization, and even have their customers notified that the partner is no longer CSP-authorized. Microsoft will guide those customers to find a new (compliant) reseller. This is a worst-case scenario that every direct partner will want to avoid. Every July, Microsoft announces what’s next for partners in the new fiscal year. If you’re a direct or indirect CSP, staying compliant—and profitable—means tightening your focus on security, skilling, and incentive eligibility through Partner Center. Here’s what’s changing, what’s staying the same, and what you need to do before October 1, 2025.

Starting October 1, 2025, all CSP partners—direct and indirect—must meet a baseline security score to continue transacting licenses. This includes three mandatory security requirements: These controls are visible in the Security Requirements Dashboard inside Partner Center, and failure to meet them means you won’t be able to transact licenses via CSP as of Q2 FY26. 📘 Source: Microsoft Learn – Partner Center Security Requirements Indirect resellers no longer need to hold full designations to earn CSP incentives. Instead, they can now qualify by meeting these two conditions:

Access to this page requires authorization. You can try signing in or changing directories. Access to this page requires authorization. You can try changing directories. This page provides the announcements for Microsoft Partner Center for March 2025. The Guide to the Online Services and Software Channel Authorization (CSP Program Guide) was updated on March 27, 2025, and will become effective on April 27, 2025.

The updated version of the CSP Program Guide is now available for your review. Changes become effective for current partners automatically on April 27, 2025, with no further action needed by either party. Microsoft is introducing significant updates to the Cloud Solution Provider (CSP) program starting October 1, 2025. These changes affect all CSP partners: Direct Bill partners, Distributors, and Indirect Resellers and will impact both authorization and incentive eligibility. To ensure a stronger, more capable, and more secure partner ecosystem. If you’re part of the Microsoft CSP program, this is the time to understand what’s changing, assess your readiness, and take action.

Microsoft is evolving the CSP model to better support modern customer needs, encourage partner specialization, and drive long-term growth. That means: By updating the CSP requirements and aligning incentives with partner skills and performance, Microsoft is doubling down on partners who are truly driving cloud transformation. Microsoft have just announced some major changes to the way that license transacting partners are verified and approved to participate in the Microsoft CSP Program, effective 1st October 2025. Three distinct groups will experience changes; Direct Bill partners, Indirect Resellers, and even Distributors. Through this blog, we will demystify the changes coming to both indirect and direct bill partners for FY26 and FY27.

This is what we know so far, so expect updates as we receive more information. Yes- absolutely. As of October 2025, indirect providers will be required to have a minimum of $30million TTM billed CSP revenue per authorised region. This will certainly lead to some consolidation within the distribution channel, and will be potentially disruptive to mid-market distributors. Any existing distribution contracts will also be asked to meet the $30million trailing 12 month revenue target, even if distribution is not the sole business function, causing some indirect providers to forfeit their place... Microsoft announced at Ignite 2024 that there is a total addressable market opportunity of $661 billion within small and medium Enterprise customers globally.

Microsoft are motivated to ensure that they have skilled and compliant partners to capitalise on this opportunity. As such, they are measuring CSP partners on their ability to execute well against six key metrics:

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Partners who fall short by the deadline will lose their CSP authorization, undergo off-boarding and deauthorization, and even have their customers notified that the partner is no longer CSP-authorized. Microsoft will guide those customers to find a new (compliant) reseller. This is a worst-case scenario that every direct partner will want to avoid. Every July, Microsoft announces what’s next for p...

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Access To This Page Requires Authorization. You Can Try Signing

Access to this page requires authorization. You can try signing in or changing directories. Access to this page requires authorization. You can try changing directories. This page provides the announcements for Microsoft Partner Center for March 2025. The Guide to the Online Services and Software Channel Authorization (CSP Program Guide) was updated on March 27, 2025, and will become effective on ...