Changes Are Coming for Microsoft CSP partners—What You Need to Know

Big changes are on the horizon for Microsoft Cloud Solution Provider (CSP) partners, starting October 1, 2025. These updates will result in changes for Direct Bill Partners, Distributors, and Indirect Resellers, bringing new technical requirements, revenue thresholds, and compliance demands that Microsoft sellers should be aware of.

The stakes are high: maintaining your CSP partner status means adapting swiftly to Microsoft’s evolving criteria, preserving control over pricing and customer relationships, and managing operational costs effectively.

Microsoft’s CSP program overhaul will impact partners differently based on several factors, so it’s important for you to familiarize yourself with the changes and adjust accordingly to ensure your business and your customers aren’t impacted negatively.

In this article, we’ll guide you through what’s ahead and offer insights on how to leverage these changes to unlock new growth opportunities with the support of AppDirect. You can also sign up for our webinar, where we’ll offer an in-depth look at the changes and options available to you. If you miss the live webinar, you can access a recording.

What’s changing in the Microsoft CSP program?

The Microsoft CSP overhaul is aimed at ensuring a highly capable and compliant ecosystem of partners. Although the updates will have varying impacts on CSP Partners depending on their roles and level in the program, every partner type will see changes.

1. Technical requirements

An automated operational assessment will now apply to both Direct Bill Partners and Distributors. This assessment is designed to evaluate partners’ readiness across key capabilities, including:

• Billing and invoicing processes

• Provisioning workflows

• Customer support operations

• Compliance and security frameworks

Key takeaway

Ensuring that your systems and processes align with these requirements is crucial, as meeting them will help maintain seamless operations and uphold customer trust.

2. Revenue requirements

All CSP partners will need to meet minimum revenue thresholds to retain their designation:

• Direct Bill Partners—Minimum of $1 million USD in trailing 12-month (TTM) CSP revenue at the Partner Global Account (PGA) level

• Distributors—Minimum of $30 million USD in TTM CSP revenue per authorized geographic region

• Indirect Resellers—Minimum of $1,000 USD in TTM CSP revenue at the reseller tenant level

Although these requirements will come into effect on October 1, 2025, for individual partners, Microsoft will apply them according to each partner’s anniversary date, as set in the Partner Center.

Key takeaway

Achieving these revenue benchmarks is essential to maintaining CSP status, allowing you to continue managing pricing and nurturing customer relationships effectively.

Learn more about the Microsoft CSP partners and the requirements on Microsoft Learn website.

Three ways AppDirect can enable your Microsoft sales

AppDirect can help you navigate these changes and grow your Microsoft cloud sales into a thriving part of your business.

Whether you’re selling direct today, seeking distribution support, or looking for a more flexible route to market, AppDirect is here to help, with comprehensive support to navigate the changing landscape and ensuring and operational efficiency for your customers.

1. Sell Microsoft through the AppDirect platform

The AppDirect platform provides the tools, integrations, and infrastructure that partners need to successfully sell Microsoft alongside other cloud solutions.

Key AppDirect capabilities include:

• Centralized management of Microsoft products, including Microsoft 365 and Azure
  
  

• Full support for the subscription lifecycle: quoting, provisioning, upgrades, renewals, and billing
  
  

• Access to usage-based, recurring, and one-time billing models
  
  

• Self-service functionality for end customers
  
  

• Unified reporting, partner margin tracking, and tax automation
  
  

• Integration with Microsoft NCE and Partner Center
  
  

Whether partners are scaling operations or streamlining Microsoft sales, the AppDirect platform provides a proven foundation to grow efficiently and compliantly.

2. Sell as an AppDirect Advisor

Partners who no longer meet Microsoft's new thresholds—or who prefer not to manage infrastructure—can continue selling Microsoft by joining the AppDirect Advisor community.

As an Advisor, you can:

• Sell Microsoft and 5,000+ other solutions from a single platform
  
  

• Access co-branded marketing assets, training, and enablement
  
  

• Receive full support for billing, fulfillment, and customer success
  
  

• Focus on customer relationships while AppDirect handles the operational side
  
  

The Advisor model is a flexible path for partners who want to remain active in Microsoft sales without the complexity of CSP infrastructure.

3. Sell as a Canadian partner—Working with ITCloud

For partners based in Canada, AppDirect offers ITCloud.ca, a Microsoft-authorized Indirect Provider.

ITCloud enables resellers to:

• Continue selling Microsoft products in a compliant, localized model
  
  

• Access regional support in English and French
  
  

• Combine Microsoft solutions with value-added services like backup, migration, and cybersecurity
  
  

• Simplify invoicing through a single monthly bill, offering the flexibility for either direct billing to your customer or indirect billing managed by you

ITCloud supports over 1,200 Canadian resellers and is fully aligned with Microsoft’s updated program structure.

Your roadmap to finding the right Microsoft CSP sales model

Microsoft’s updated CSP requirements may require some partners to pivot—but AppDirect is here to help you make the transition with confidence.

Whether you plan to continue as a Direct Bill Partner, move to an indirect model, or are considering becoming an advisor, AppDirect offers a scalable solution that supports long-term growth.

Next steps

We’re making it easy for you to plan for these changes. Follow these links to set yourself up for success.

Sign up for our webinars to get an in-depth look at what’s changing, the impacts, and what you can do:

• Navigating Microsoft CSP Changes with AppDirect

• Selling Microsoft with the AppDirect platform

Contact us to discuss the best strategy for you

Download the Forrester Wave™ Report to see why leading Microsoft partners trust AppDirect to power their cloud strategy