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soykim01
Microsoft

CSP partner margin for perpetual licensing

Please share its margin structure for APAC resellers

4 REPLIES 4
DSLee
Level 1 Contributor

CSP margin for Indirect Resellers, which I just found out after waiting 3 months for the price list to show up in Canada, is 9%. A MASSIVE decrease from 14% for Open Licenses.

 

I'd sold 192 Core licenses for 2019 to a client and then waited for 2022 licensing when it got announced, and now we get 5% LESS margin. So even though my client is good with paying the 8% increase in list price, my company (a Silver partner) takes it on the chin to the tune of $700 less gross profit while the list price to the client goes up by $1300. Didn't even get kissed.

JanoschUlmer
Microsoft

@DSLee : Same answer as on yammer - Microsoft is not determining the margin for Indirect Resellers, the Indirect Provider is . From the CSP price list available for Direct CSP and Indirect Provider the margin has not decreased.

Kind regards, Janosch
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JanoschUlmer
Microsoft

The margin is documented in the respective price lists for your region available in Partner Center, it features both the internal and ERP price. If you are indirect reseller, you can ask your provider for this info. See also https://partner.microsoft.com/en-US/resources/collection/software-in-csp#/

Kind regards, Janosch
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DSLee
Level 1 Contributor

While I appreciate the pricing is 'published', the 5% drop in margin from Open to CSP licensing is a large hit. We're making Microsoft a lot of $$, and the path being taken with the reduction of margin while increasing pricing is punishing the very people who contribute to Microsoft's success.