Microsoft CSP Explained: Hidden Costs, Flexibility Myths & Licensing Truths

CSP Is Not What You Think

The CSP Pitch vs. Reality

• Flexibility Claim: “Change or cancel anytime.”
  Here’s the catch: With the new CSP New Commerce Experience (NCE), if you opt for an annual plan to secure a better rate, you cannot reduce your license count until the term is up. Month-to-month plans are available, but they cost about 20% more. Monthly billing is 5% more expensive than annual billing. Flexibility exists – but it might come at a higher price or with conditions (more on this in the next section).
• Cost Savings Claim: “CSP is cheaper for everyone.”
  In reality: Smaller businesses may find CSP cost-effective, but larger enterprises often get better volume discounts with an Enterprise Agreement (EA) (eventhough price level discounts (A–D) for Online Services will disappear in EA/MPSA). CSP pricing is based on Microsoft’s retail prices. For big organizations with hundreds or thousands of seats, an EA could actually yield lower per-user costs once negotiated. CSP can save money in the right scenario, but it’s not a universal truth. There are CSP promos on some major products available though.
• Simplicity Claim: “One partner handles it all, so it’s simpler.”
  Unspoken truth: That “one partner” might be reliant on another distributor behind the scenes (if they are an indirect CSP). So when an issue arises, there could be a chain of support (Partner -> Distributor -> Microsoft), which can delay issues and make things complicated. Also, having a single point of contact is convenient, but it also means you depend heavily on that partner’s competence and honesty.

Flexibility — But at What Cost?

• Monthly vs. Annual Commitments: Under NCE, you have options. You can go month-to-month with no long-term commitment, or you can commit to a 12-month (or even 36-month) term. The monthly plan offers ultimate flexibility – you can drop licenses or cancel from one month to the next. But this flexibility comes at roughly a 20% price premium on your subscription costs. It’s the “cost of agility.” If you commit annually or multi-year, you pay less per seat, but you’re then locked in for that term (barring cancellation windows depending on the type of license at the start of the term).
• Scaling Down Isn’t So Simple: Imagine your company hires 100 new employees in January, so you increase your Microsoft 365 CSP licenses by 100 to match. By June, a project ends or budgets tighten, and you need to scale back by 50 licenses. If you chose an annual term for those licenses, you cannot reduce that count until your annual term is up. You’re stuck paying for those 50 extra seats until renewal. The CSP model is very friendly when scaling up (you can add licenses any time and just pay pro-rated for the remainder of the term), but scaling down has restrictions if you’re on a committed term.
• What Flexibility Really Means: In practice, “flexibility” means you have the option to choose a monthly term contract – not that any CSP contract can be changed at will. So, you need to decide up front how much flexibility you truly need. If you need the ability to drop seats or cancel services at short notice, you should take the monthly term and budget for that higher cost. If your user count is relatively steady or only growing, an annual term will save you money – but you sacrifice the ability to downsize during that year.

The Hidden Complexity of CSP Licensing

• Different Rules for Different Products: The CSP program covers a wide range of Microsoft products – Microsoft 365, Azure, Dynamics 365, Power Platform, Windows 365, and even some perpetual software licenses. Each of these product lines can have different licensing rules within CSP. For example, an Azure plan through CSP might have one set of billing rules, while Microsoft 365 subscriptions have another. Some services might allow mid-term license reductions (like certain Azure subscriptions which are usage-based anyway), whereas most seat-based subscriptions (Microsoft 365, Dynamics, etc.) do not under NCE. It’s not one-size-fits-all but a patchwork of terms and conditions that needs to be navigated by experts.
• Regional and Currency Nuances: CSP is a worldwide program, but licensing terms can vary by region or country. Prices for the same license can differ between, say, the EU and the US, not just because of currency conversion but also due to local pricing strategies or promotions. If your organization operates in multiple countries, you might find that transferring licenses or standardizing CSP across regions is trickier than expected. For instance, a license purchased via a European CSP partner might need to be repurchased in the US if you wanted to consolidate under a US agreement – there’s no simple “transfer” between GEOs in some cases. These regional quirks add complexity for global companies.
• Partner Variability: Under CSP, a lot of the licensing experience is determined by your partner. Each CSP provider might bundle their own managed services or offer different billing terms (some might offer annual billing on an annual term vs. monthly billing). The portal or tools you use to manage licenses can differ as well – some partners have their own customer portal layered on top of Microsoft’s system, while others might manage changes for you. This means if you change CSP partners, your experience of managing licenses might change too. It’s not as seamless as just logging into Microsoft’s site (though you do have the standard Microsoft 365 admin center for user management, license assignment, etc., the purchasing aspect is partner-driven).
• Licensing Transitions and Misalignment: It’s easy to assume that a license is a license, but moving from one program to another can have unexpected effects. Example: Example Corp had a traditional Enterprise Agreement for years, which gave them rights like downgrade rights and Software Assurance benefits (training vouchers, support incidents, etc.). In a cost-saving move, they shifted some of their software purchases to CSP for new divisions, not realizing that CSP doesn’t include Software Assurance in the same way. They saved money on subscription costs, but later discovered they no longer had training vouchers or long-term downgrade rights for those new purchases. Another example: Contoso Corp might mix EA and CSP licensing and accidentally double-pay or mis-assign licenses because the entitlements overlap or differ. Without a licensing expert to guide them, it’s easy to get tangled in the weeds of what’s allowed where.
• Product Lifecycle and Subscription Alignment: In CSP, subscription terms start when you purchase them. If you add different products at different times, you could end up with a dozen mini renewal dates to track. In an EA, you typically co-term everything to a common anniversary. With CSP, unless you – or even better: your experienced CSP partner(!) – carefully plan, you might be juggling multiple renewal dates across the year for different products or departments. Coordinating renewals and changes can become a calendar chore. An experienced CSP partner will co-term your subscriptions, e.g. when adding new subscriptions mid-term, have them run until the end date of your existing ones.

Indirect vs. Direct CSP: Why Most Clients Don’t Know the Difference

• Support and Escalation: With a Direct CSP, if there’s a problem with your service, your partner can go straight to Microsoft to fix it. With an Indirect CSP, your partner likely has to go through the distributor’s support process. That could mean slower response times or a game of “telephone” for complex issues. For example, if a license provisioning goes wrong, a Direct CSP will log a ticket with Microsoft immediately, whereas an Indirect might have to call their distributor, who then contacts Microsoft – adding extra layers, potentially costing you time and money.
• Transparency: Indirect partnerships can introduce some opacity in pricing and responsibilities. You might get a bill from your partner, but behind that, the distributor has their pricing to the partner. While this isn’t inherently bad (many indirect partners offer very competitive pricing and good service), it’s another layer where miscommunication can happen. If your invoice has an unusual charge, the partner might need to check with the distributor to explain it. A Direct CSP usually has full transparency into the cost structure and can explain your bill line-by-line, because they set it.
• Control: Direct CSPs have more control over the tools and portals used to manage your subscriptions. Indirect CSPs often use the distributor’s portal (this usually looks like a normal portal, because it is white labelled). If you ever switch partners (which is possible – see the FAQ section later), it might be easier moving from an indirect to another indirect on the same distributor, versus moving from one direct to another direct, or direct to indirect (where processes differ). Regardless, customers usually don’t have to get involved in that technical detail, but it’s good to know that differences exist.
• Knowledge and Resources: Achieving Direct CSP status requires a certain level of commitment and expertise from the partner. That often (though not always) means a Direct CSP partner is more experienced and invested in Microsoft licensing. As a reference, we read through 500 Microsoft licensing PDFs and thousands of documentations per year, visit seminars and do dozens of certifications. Indirect partners can also be experts, but the barrier to entry is lower to be an indirect reseller. As a client, if you’re working with a Direct CSP, you can generally expect that partner to have a deep bench of Microsoft knowledge (since they have to support you fully themselves). If working with an indirect, you might want to vet not just the partner but also ask, “Who is your distributor?” – top distributors (like Ingram Micro, ALSO, etc.) are reputable, but you want to be sure your partner has a strong relationship with them. Why? Because when working with an Indirect CSP partner, you are often relying on the Microsoft expertise of their distribution. Make sure to ask your CSP partner, if they just provide the licenses, or if they do comprehensive licensing consultancy. Being falsely licensed can cost you thousands in licensing waste (double-licensed, unsused licenses, unused promotions, not the most cost-effective licensing program selected, product too-expensive for its use case…)

The New Commerce Experience (NCE): Flexibility Redefined or Restricted?

• Standardized Terms: Before NCE, CSP was already flexible with mostly annual subscriptions (paid monthly) and the ability to cancel anytime with 30 days’ notice. NCE brought in defined terms: monthly, 1-year, or 3-year subscription terms for some select products. If you choose monthly term, you can cancel or adjust every month. If you choose 1-year or 3-year, you’re committing for that duration (billed monthly or upfront, your choice, but commitment length is fixed).
• Price Lock vs. Price Increases: Under NCE, if you commit to a 1-year or 3-year term, your price for that subscription is locked for that term. This is great for budgeting and protection against Microsoft’s price increases (and Microsoft has been raising prices on many products recently). However, the flip side is if you go monthly term, your pricing could change month to month if Microsoft changes prices, and you’re paying that built-in premium. NCE basically says: you want price stability? Then commit longer. Want flexibility to drop? Then accept that prices may rise and you’ll pay more overall. Planning is the key.
• Cancellation Policy: As noted earlier, NCE introduced strict cancellation or reduction windows at the start of a new term. After that, you’re locked in until renewal. This policy is a big shift from the old CSP where you could often pro-rate and adjust mid-term. It caught some businesses off guard, especially those used to the old way. Here is the overview of cancellation windows:

• Alignment with Other Channels: A driving reason for NCE was Microsoft wanting CSP to align more with how Office 365 subscriptions worked if bought directly or how enterprise agreements function. In doing so, they made CSP a bit less special (previously CSP was unique in its anytime cancellation flexibility). Now, CSP looks more like EA in commitment, except you can still choose a truly monthly option if you’re willing to pay more.
• More Promotions: We noticed that there are way more major promotions available for relevant products in CSP NCE, compared to the old CSP. These range typically from 10-20%, with higher discounts on special bundeling offers. It is important to stay up-to-date on these ones. Ideally, your CSP partner informs you as soon as these become available and considers all of them when consulting and reselling licenses to you. Check current CSP promos here: https://www.schneider.im/category/microsoft-promotions/.

• It’s restrictive in the sense that CSP is no longer an all-you-can-change buffet. Commitments are back in play, making it more like traditional licensing agreements.
• It’s a redefinition of flexibility in that Microsoft basically said: we’ll still let you be flexible, but you’ll pay for the privilege (premium pricing for monthly terms).

CSP vs. EA: The Truth About Cost and Control

• Contract Commitment:
  CSP: No minimum user count. Commitment can be as low as month-to-month (or 1-year/3-year via NCE). You have the flexibility to start small and adjust as you go.
  EA: Typically a 3-year contract with Microsoft, often requiring 500+ users/devices minimum (for commercial EA). It’s a substantial commitment, usually chosen by mid-to-large enterprises ready to project their license needs long term. However, as of 2025, Microsoft might deny your organization getting an EA at all. Microsoft is trying to shift customers to CSP, and an EA is often rejected, if only cloud products are part of the proposed EA. If on-prem solutions are part of the contract proposal, then you have a better chance. Over the long term, EA is disappearing.
• Upfront vs Ongoing Costs:
  CSP: Pay as you go. Billing is usually monthly for whatever licenses you have active. No large upfront payment — good for cash flow, but costs can rack up over time if not managed (especially if you forget to remove unused licenses since they auto-renew).
  EA: Often involves an annual payment (or even upfront for multiple years in some agreements). You might pay a big chunk yearly, which can secure better pricing. It’s a capex vs opex consideration: EA can mean higher upfront spending, whereas CSP keeps it mostly as operational expense spread out.
• Pricing & Discounts:
  CSP: Pricing is generally based on standard list prices. Discounts in CSP are usually modest, if any, and come from the partner’s margin (Microsoft itself doesn’t typically discount CSP licenses for customers, except occasional promos). Large CSP orders don’t automatically get a volume discount from Microsoft – though a partner might offer you a discount, if you’re a big client for them, leaving the partner with a smaller piece of the pie.
  EA: Volume rules – at least in the past! With an EA, the more you bought, the better the pricing tier you reached. This is called “price level discounts”, and these price levels are A, B, C, D (based on quantity). These price levels are being eliminated starting November 1, 2025. Enterprises can negotiate special pricing, especially if they’re committing to a suite of products (e.g., Microsoft 365 E5 for 5,000 users + Azure spend, etc.). So per-license cost under EA can be significantly lower than CSP for the same product, once you hit certain scale. This is why a huge corporation typically wouldn’t license via CSP — it could be millions left on the table.
• Flexibility & True-ups/downs:
  CSP: As discussed, CSP is flexible in adding licenses (instantly) and removing them (at end of term, if annual; or anytime with monthly terms). You can also shift licenses between products easily in CSP (e.g., move a user from E3 to E5 mid-term by just upgrading subscription). No yearly true-up process; it’s continuous.
  EA: You generally fix a number of licenses at the start (your committed baseline). During the year, if you exceed that (add users or products), you do a true-up at the anniversary – reporting additional usage and paying for it retroactively for that year. If you reduce usage, you typically can’t decrease your paid count until the next renewal (end of the 3-year term for traditional EA, though some EAs allow limited “true-down” at anniversary for certain products). So flexibility mid-term is limited; EA is designed for stable or growing needs, not shrinkage. On renewal, you can adjust your quantities down or up and then commit anew for the next term.
• License Management & Administration:
  CSP: Managed via the partner and Microsoft’s cloud portals. It’s generally easier for day-to-day administration – add or remove licenses via a portal, changes reflect in real time or within a day. There’s no big yearly reconciliation form the customer has to send (the partner/Microsoft just charge for what’s used). Watch out though: If you click through your partner’s portal with consulting the expertise of your consultant, you might end up paying way more than you need. This is what we see: Clients switching to us for our licensing expertise often pay 10-30% too much because they selected wrong products, activated trial licenses while erasing promotional pricing, purchased too many licenses while not assigning all of them etc.
  EA: Comes with a bit more administrative burden. Microsoft provides tools (like the Volume Licensing Service Center and now the Microsoft 365 admin portals) to track usage, but you also have formal paperwork at anniversary (true-up order forms, etc.). Traditionally, licensing professionals or a partner (LSP) help manage an EA to make sure you’re compliant and not under-licensed. An LSP is required as Software Advisor between Microsoft and the customer, whether or not you ask a non-LSP for licensing advice. The EA also often includes Software Assurance tracking (ensuring you maintain SA, get your benefits, etc.), which is an extra layer of management.
• Included Benefits:
  CSP: Does not include Software Assurance (SA) by default. However, many SA benefits are less relevant with cloud subscriptions (for instance, you don’t need upgrade rights when you’re subscribing to the latest version via Microsoft 365). Some benefits like training days or support tickets that came with SA aren’t included in CSP, though a good partner may offer training or support as part of their service.
  EA: Software Assurance is typically included or available, bringing a host of benefits: training vouchers, planning services, support incidents, license mobility for servers, etc. If those benefits matter to you (they often do in large enterprises with hybrid setups), EA has an edge.
• Partner Involvement & Support:
  CSP: You must have a partner (even if it’s a Direct Market Reseller like a big online store, that’s still a partner of Microsoft). That partner provides your Tier-1 support. Good CSP partners will resolve most things and involve Microsoft for backend issues without you needing to intervene. But essentially, you’re outsourcing a lot of the licensing management to a partner. Ideally, the CSP-provided support is more cost-effective than the one offered from Microsoft in an EA, called Microsoft Unified Support.
  EA: You typically work with a Licensing Solution Provider (LSP) to sign an EA (like SCHNEIDER IT MANAGEMENT, which in our case we can do both EA and CSP (and many more)). The LSP handles the procurement and can offer advice, but your support for cloud services can come directly from Microsoft (especially if you have a Premier Support or Unified Support agreement). With an EA, you are a “direct customer” of Microsoft in terms of the licensing contract. You often get a Microsoft account manager or technical specialist assigned to your account once you’re big enough.

• For a lean small-to-mid business that values monthly billing and low commitment, CSP is usually the way to go.
• For a large enterprise dealing with thousands of licenses, hungry for discounts and with a stable outlook, EA can offer better control over long-term costs and includes valuable extras (but requires commitment and internal management).

What Microsoft Partners Won’t Tell You

• “We can only sell CSP (so that’s all we’ll recommend).” Some partners push CSP for every scenario, even when an Enterprise Agreement or other licensing model might be more cost-effective, simply because they aren’t certified to sell you an EA or don’t have the expertise for it. If a partner never even brings up alternatives like EA or Microsoft’s volume licensing, that could be a sign they’re steering you towards what’s best for them, not you. At SCHNEIDER IT MANAGEMENT, we deliberately became an LSP (Licensing Solutions Provider) in addition to CSP, so we can offer all licensing programs and give objective advice.
• Hidden Markups or Fees: Microsoft sets base prices for CSP, but partners have flexibility in how they bundle and bill services. A less scrupulous partner might quote you a flat per-user price that’s higher than Microsoft’s MSRP without clearly explaining what extra service you’re paying for. For instance, if Microsoft’s price is $20/user/month and the partner charges $22, that extra $2 might be for their added support or a bundled security service – or it might be just margin. A good partner will be upfront: “Microsoft’s price is $20, our managed support adds $2, here’s what you get for it.” Others might just hope you don’t notice the gap. Ask for clarity on any charges above official Microsoft pricing. To be clear though: Ideally, the CSP shouldn’t charge anything on top, compared to Microsoft list prices.
• Partner Lock-In via Portals or Services: Some partners create their own management portals, which can be a nice value-add, but sometimes they design them in ways that make it harder to decouple and move to another provider. For example, if a partner combines your CSP licensing with other services (like a cloud management tool, or bundles multiple software subscriptions together), they might not volunteer that you can actually move your licenses to another provider if you wanted to. It’s possible to switch CSP partners without interrupting your service (it’s your Microsoft tenant, after all), but a partner might not tell you that because they don’t want to lose your business. Also, make sure you know exactly what you are doing when using these portals. Essentials, you become the licensing professional when navigating these portals, because you bypass the help of licensing experts.
• Over-selling “Flexibility” While Underplaying Costs: We touched on how flexibility can come with a price. Some partners will wave the flexibility flag proudly but won’t proactively warn you about the 20% premium on a monthly term, or the cancellation windows. They might figure they’ll explain it if you happen to ask later or, worse, hope you won’t notice on the invoice. We think that’s bad practice and think you deserve to know what you’re signing up for from day one.
• Pushing Long Commitments without Analysis: On the flip side, another practice is pushing a customer to lock into a long-term CSP commitment (like a 3-year NCE term) without fully analyzing if it’s the right choice. Why would a partner do that? Because it secures the revenue longer and reduces the chance you’ll switch providers or drop licenses. If a partner is urging a 3-year lock-in on CSP, make sure they’ve given you a solid reason (e.g., “Microsoft is offering a 10% discount for 3-year on this product and your usage is very steady, so it could make sense”). If the reasoning sounds like “because it’s easier” (for who?), be cautious.
• Indirect Partner Dependency: As discussed, indirect CSP partners rely on distributors. A partner might not tell you that their back-end is actually run by Distributor XYZ. Why does this matter? If there’s an outage or issue with the distributor’s systems, your partner might be unable to provision or support you until that’s fixed. Also, if you have credit terms or billing arrangements, you’re effectively dealing with a pass-through from the distributor. While not necessarily a problem, it’s something many customers would like to know. We’ve heard stories where a client was promised something by a partner (“yes, we can extend your payment due date this month”) only for the distributor to say no, leaving the client in a lurch last-minute.
• That You Might Be Too Big (or Too Complex) for CSP: Some partners won’t tell a growing client that they are reaching a point where an Enterprise Agreement might be more beneficial, because they don’t want to lose the CSP business. It’s ironic, but a partner who can only do CSP might let you stick with it even as you outgrow it. You end up missing out on EA pricing or benefits because no one told you. We believe it’s better to have an honest conversation and possibly transition a client to an EA (even if that means a different sales motion) when it truly serves the client’s interests. In many cases, we continue to manage those clients’ licensing under the EA anyway, so it’s a win-win to be transparent.

How to Choose a CSP Partner Who Tells You the Truth

1. Ask the Hard Questions Upfront: Don’t be afraid to interview your potential partner. Ask about CSP vs EA, ask if they ever recommend one over the other. A trustworthy partner will gladly discuss the pros and cons of each and won’t shy away from admitting situations where CSP isn’t the best fit. For example, pose a scenario: “If I had 1000 users, would you still recommend CSP, and why? What changed within CSP? What other licensing programs can you offer?” Their answer will tell you a lot about their philosophy.
2. Check Their Credentials: Is the partner you’re evaluating a Microsoft Direct CSP? Are they also a Licensing Solutions Provider (LSP) authorized to sell Enterprise Agreements or other programs? A partner with multi-program expertise has less incentive to funnel you into one channel. They can truly customize the solution. SCHNEIDER IT MANAGEMENT, for instance, operates as both a Direct CSP and an LSP – meaning we can offer CSP, EA, Open Value, and more. This multi-role capability forces us to stay objective; we have all the tools in the toolbox, so we select what fits, not just the one tool we happen to have.
3. Look for Transparency in Pricing and Terms: A good partner will provide clear quotes that show what you’re paying for licenses versus any added services. If a partner provides a lump sum quote without details, ask for a breakdown. If they hesitate or insist “it’s too complex to break out,” that’s a red flag. Additionally, the partner should clearly explain the terms you’re entering – the duration, cancellation policies, etc., ideally in writing. Look for partners that even provide comparisons (e.g., “if we did this under EA it would look like X, under CSP it looks like Y”) – that shows they’re trying to educate you, not confuse you.
4. Evaluate Their Support Structure: Since CSP means the partner is your first line of support, ask about how they handle support. Questions like: “Do you provide 24/7 support for critical issues? How do you escalate issues to Microsoft if needed? Do you have dedicated licensing specialists?” The answers will indicate if they have a solid setup or if they’re winging it. A partner who can tell you, “Yes, we have a dedicated support hotline and a process to escalate to Microsoft Premier support if needed” is giving you confidence. One that says “just email us whenever” might not have the maturity you want, which is the case with most smaller CSP partners.
5. Ask for Client References or Case Studies: A reliable partner should have success stories or references. You might ask, “Do you have clients of a similar size/industry that you’ve helped? Can you share any examples (anonymized is fine) where you advised a client to maybe not take a deal because it wasn’t right for them?” If a partner can share a story like, “Yes, we had a customer who we actually recommended go to an EA because it saved them 15%, and we still helped them manage it,” that’s a good sign. It shows they’re not afraid to do what’s right even if it’s extra effort.
6. Consider Value-Added Services: While core licensing honesty is key, also consider what extra value a partner brings. Are they just reselling licenses, or are they helping optimize your usage? For example, do they offer periodic licensing reviews, cost optimization for Azure, checking your licensing across buying channels for each purchase, etc.? A partner focused on your long-term success will offer these things proactively. SCHNEIDER IT MANAGEMENT, for example, offers regular check-ins, licensing healthchecks and optimizations. That’s something you want – it means they’ll continually be looking out for you, which usually goes hand-in-hand with being transparent (because they’ll regularly revisit and adjust your strategy, not sell and forget).
7. Gut Feel and Culture Fit: At the end of the day, trust your gut too. How a partner communicates is important. If they are willing to educate you during the sales process – not just sell to you – that is important. You should feel comfortable asking even basic questions and not feel talked down to. The right partner will make you feel empowered with knowledge, not dependent and in the dark.

Choosing the right partner might seem like a lot of work, but it’s worth it. The difference is like having a guide versus a sales agent. The guide will lead you through the jungle safely, pointing out the traps; the sales agent might just point you to a path that maximizes their commission.

Conclusion: CSP Can Be Great—If You Know What You’re Doing

• CSP is flexible, but not limitless: Understand the commitment vs. cost trade-offs and plan your license terms wisely.
• Licensing is complex under the hood: Don’t go in without a licensing strategy and expert advice, or you might encounter unwelcome surprises.
• The type of partner matters: Direct CSP partners bring you closer to Microsoft and often offer more transparency and better conditions; know who you’re dealing with.
• NCE has changed the game: What was true about CSP a few years ago may no longer be true today. Stay updated on policy changes.
• CSP vs EA vs MPSA is not one-size-fits-all: Evaluate your own situation (size, budget, needs) to choose the right path, or combination of paths.
• Not all partners will give it to you straight: Be proactive in questioning and choose a partner that acts as an advisor, not just a reseller.

FAQ: CSP Myths Debunked

Is CSP really cheaper than an Enterprise Agreement?

Not universally. CSP often has lower upfront costs and can be cost-effective for small and mid-size businesses. But large enterprises might find an EA cheaper in the long run due to volume discounts. For example, if you have thousands of users, an EA lets you negotiate better pricing – something you can’t do with CSP’s standard pricing. Also, remember CSP monthly term subscriptions come at a premium. So, if you’re a big organization willing to commit, EA can deliver more bang for your buck. Bottom line: CSP is cheaper for some scenarios, EA for others – it depends on scale and commitment.

Can I switch CSP partners easily if I’m not satisfied?

What happens if my CSP partner goes out of business or loses their Microsoft partnership?

Your licenses won’t suddenly vanish – but you will need to transition to another CSP partner. Microsoft has safeguards for customers in such situations. If a partner can no longer service your account, Microsoft will typically notify you and allow your licenses to be moved to a new partner of your choice. This is another reason to keep an eye on the health of your provider (choose stable, established partners). But rest assured, you won’t lose access to your services. It’s wise, however, to act promptly and find a new partner so your account doesn’t languish without proper support.

Does CSP include Software Assurance benefits?

I have an Enterprise Agreement now. Can I add CSP for new stuff or do I have to stick to EA only?

Is CSP only for cloud services, or can I buy traditional licenses too?

Mostly cloud, but CSP has expanded. Originally CSP was all about cloud subscriptions (hence the name). Now, CSP includes what Microsoft calls “software subscriptions” and even perpetual licenses for some products. For instance, you can purchase Windows Server or SQL Server subscriptions (which are basically like 1-year licenses) via CSP, and even perpetual licenses for some software. Microsoft consolidated a lot under the “New Commerce” umbrella. That said, if you’re primarily buying on-premises perpetual licenses and you’re a large org, an EA or Open Value (OV) or MPSA agreement might still be more appropriate due to the complexities of those licenses. CSP can handle a mix, but it truly shines for cloud services. For most cases, going with CSP for cloud services and going with MPSA or EA for on-prem can be a great strategy. Consult a LSP such as SCHNEIDER IT MANAGEMENT for help in finding the right licensing strategy.