Where should a Direct CSP Provider purchase their own internal Microsoft subscriptions from???
After reviewing the Microsoft Partner Agreement it does state you should not use the partnership to purchase subscriptions for Internal Use.
However under https://docs.microsoft.com/en-us/partner-center/multipartner it also states the following:
"A partner in the CSP program cannot resell online services to another partner in the CSP program currently. "
So if a direct CSP cannot purchase subscriptions from themselves, but also cannot purchase subscriptions from another CSP, then where should a direct CSP purchase O365, D365 and Azure type licenses?
This statement refers to a certain technical scenario - e.g. if you use an AzureAD tenant to transact as Direct Reseller CSP, you can not accept a reseller relationship invite from another Reseller in this tenant.
If you use a tenant to act as Indirect Reseller and you have connected with an Indirect Provider via Partner Center, the same Indirect provider can not sell to you as customer since only one relationship can exist for this tenant (Indirect Provider --> Reseller OR Indirect Provider acting as Reseller --> Customer)
This is a technical limitation, not a contractual one.
This limitation is also why I recommend to not use your internal production tenant to act as CSP, but enroll as CSP using a separate tenant, and use this tenant only for managing end customers.