The Million-Dollar Question
Oliver Gardner, Head of Microsoft Alliances at Giacom
The Microsoft CSP indirect transition is now a reality for many channel providers. With Microsoft raising the minimum direct threshold to $1 million from 1st October 2025, many resellers and MSPs must now consider moving to an indirect provider. Oliver Gardner, Head of Microsoft Alliances at Giacom, explains what this change means for the channel and how the right approach can turn disruption into growth.
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, this shift 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.
If your business is affected by these changes, now is the time to explore your options. Find out how Giacom can help you become a Microsoft partner and make the CSP indirect transition a strategic advantage.
Beyond Billing in the Microsoft CSP Indirect Transition
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, they can scale faster and more sustainably.
Support and Control Under the Indirect CSP Model
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, who funds and manages the Microsoft contract on behalf of their partners.
Some may see this as a loss of control, however, it often delivers the exact opposite. Good distributors provide responsive, local support teams who 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 who previously had little visibility or engagement as unmanaged direct partners.
Incentives and Insights in the CSP Indirect Transition
When it comes to incentives, there’s no loss in switching. Both direct and indirect partners receive 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 themselves.
But what does change is the way information and enablement flow. Indirect partners often benefit from curated, actionable updates on Microsoft changes as opposed to wading through the mire of corporate communications. Distributors with seats on partner councils or close working relationships with Microsoft can also bring 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 efforts with Microsoft’s own sales priorities.
Managing the Microsoft CSP Indirect Migration
Technically speaking, 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 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 why. What does this free them up to do? How can the move help them simplify operations, reach new markets, or grow faster? What does “value-add” look like 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, done right, can be a springboard for broader transformation.
Why Choosing the Right Indirect CSP 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, some of whom were hesitant, others simply unsure where to start. What they find is a UK-based support model, a unified marketplace for Microsoft and beyond (cloud, connectivity, mobile, hardware), and a partner-first philosophy focused on enablement, not just transactions.
We believe this CSP change doesn’t need to be disruptive. With the right support, it’s an opportunity to streamline, grow, and build a more resilient Microsoft practice.
The CSP programme changes don’t need to hold your business back. With the right distributor, the Microsoft CSP indirect transition can simplify operations, boost resilience, and open new growth opportunities. Discover how Giacom can support your journey and become a Microsoft partner today.