PARTNER PROGRAM
On October 28th 2008, in the Los Angeles Convention Centre, Ray Ozzie, the then Chief Software Architect at Microsoft, announced a new offering at the web tier of computing: Windows Azure. Described as “Windows in the cloud”, Azure was Microsoft’s first step into the cloud game, “providing core capabilities, such as virtualised computation, scalable storage, and most importantly, an automated service management system”. Officially launched in 2010, Azure has grown into a business that generated over $75 billion in revenue for Microsoft last year, accounting for nearly half (45%) of total Microsoft Cloud revenues. We’ll skip the history of cloud computing and move on to the present day, well, November last year, when new changes to the Microsoft Cloud Partner Program came into effect. “The move to consolidate Microsoft’s six solution areas into three – AI Business Solutions, Cloud & AI Platforms, and Security – has been a breath of fresh air for us in the field,” said Infinity Group CEO, Rob Young. “It reflects the way customers are actually buying and consuming cloud services, and partners like us appreciate that clarity.” Along with consolidating its go-to-market strategy, Microsoft has also consolidated its partner program, pushing all but the largest resellers away from Enterprise Agreements toward Cloud Solution Providers. “Where I’ve seen the biggest reaction is around incentives and eligibility,” continued Young. “Microsoft lowering the bar for earning incentives by allowing partners to qualify with 25 capability points instead of full designations has been genuinely helpful, especially for fast‑growing practices that are strong in delivery but still building out formal certifications. “That said, the raised direct‑bill threshold has been a wake‑up call for smaller MSPs and regional consultancies across the UK. It’s reshaping the landscape, but most leaders I speak to recognise Microsoft’s intent: strengthening the ecosystem’s maturity, security and customer confidence through tighter standards and operational assessments.” “In general, larger, more established MSPs have received these changes more positively,” added Christian Nagele, CSO at inforcer. “As they tend to have more internal resources, higher budgets, and more customers, it is easier for them to meet the new revenue targets put in place and achieve Solution Designations. This allows them to maintain their status and remain eligible for their monthly incentives, while continuing to focus on growing their business. They are also able to be put in a customer referral program, listing them as an available partner for any business looking to find an MSP in their region or country. “Smaller MSPs that are just starting are typically more frustrated by the new requirements. Direct-bill partners must now demonstrate $1,000,000 in total Microsoft spend over 12 months. For established MSPs, this might seem achievable, but it can be daunting for those still building their customer base and service offerings. These MSPs will still be able to sign up for the Cloud Solutions Provider Program, but will face mounting pressure to hit this number
Rob Young
infinitygroup.co.uk
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Microsoft lowering the bar for earning incentives by allowing partners to qualify with 25 capability points instead of full designations has been genuinely helpful...
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