{"id":63947,"date":"2025-09-15T18:15:56","date_gmt":"2025-09-15T16:15:56","guid":{"rendered":"https:\/\/www.schneider.im\/?page_id=63947"},"modified":"2025-09-26T14:42:32","modified_gmt":"2025-09-26T12:42:32","slug":"microsoft-csp-what-they-dont-tell-you-about-it","status":"publish","type":"page","link":"https:\/\/www.schneider.im\/lu\/faq\/microsoft-csp-what-they-dont-tell-you-about-it\/","title":{"rendered":"Microsoft CSP Explained: Hidden Costs, Flexibility Myths &#038; Licensing Truths"},"content":{"rendered":"<h2>CSP Is Not What You Think<\/h2>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Microsoft\u2019s\u00a0<strong>Cloud Solution Provider (CSP)<\/strong>\u00a0program is often wrapped in polished marketing and shiny promises. We\u2019ve all heard how\u00a0<em>\u201cCSP offers flexibility and easy cloud licensing\u201d<\/em> in neatly crafted pitches. But behind the glossy slides, there are nuances that <strong>many providers hide from you<\/strong>. <strong>This no-fluff insider\u2019s guide cuts through the marketing noise<\/strong> and tells you the <strong>real story of CSP<\/strong>. Learn about the catches, the hidden costs, and the truths you won\u2019t hear elsewhere. At <strong>SCHNEIDER IT MANAGEMENT<\/strong>, we pride ourselves on telling clients what others won\u2019t, so consider this article your candid briefing on what Microsoft CSP\u00a0<em>really<\/em>\u00a0means for your business.<\/div>\n<div><\/div>\n<p>&nbsp;<\/p>\n<div style=\"border-left: 4px solid #cc0000; background-color: #f9f9f9; padding: 15px; margin-bottom: 20px; font-size: 16px; sans-serif;\"><strong style=\"color: #cc0000;\">Summary:<\/strong> Microsoft CSP is a powerful licensing program, but not one-fits-all. While it offers flexibility and scalability, it also comes with hidden costs, commitment traps, and licensing complexity. This guide helps you navigate common CSP pitfalls and choose the right Microsoft partner for your business.<\/div>\n<div><img decoding=\"async\" class=\"aligncenter wp-image-62041 size-full\" src=\"https:\/\/www.schneider.im\/media\/2025\/07\/SCHNEIDER-IT-MANAGEMENT-2025-07-30-Graphics-Office-People-8330.webp\" alt=\"\" width=\"2410\" height=\"1005\" srcset=\"https:\/\/www.schneider.im\/media\/2025\/07\/SCHNEIDER-IT-MANAGEMENT-2025-07-30-Graphics-Office-People-8330.webp 2410w, https:\/\/www.schneider.im\/media\/2025\/07\/SCHNEIDER-IT-MANAGEMENT-2025-07-30-Graphics-Office-People-8330-500x209.webp 500w, https:\/\/www.schneider.im\/media\/2025\/07\/SCHNEIDER-IT-MANAGEMENT-2025-07-30-Graphics-Office-People-8330-800x334.webp 800w, https:\/\/www.schneider.im\/media\/2025\/07\/SCHNEIDER-IT-MANAGEMENT-2025-07-30-Graphics-Office-People-8330-150x63.webp 150w, https:\/\/www.schneider.im\/media\/2025\/07\/SCHNEIDER-IT-MANAGEMENT-2025-07-30-Graphics-Office-People-8330-768x320.webp 768w, https:\/\/www.schneider.im\/media\/2025\/07\/SCHNEIDER-IT-MANAGEMENT-2025-07-30-Graphics-Office-People-8330-1536x641.webp 1536w, https:\/\/www.schneider.im\/media\/2025\/07\/SCHNEIDER-IT-MANAGEMENT-2025-07-30-Graphics-Office-People-8330-2048x854.webp 2048w\" sizes=\"(max-width: 2410px) 100vw, 2410px\" \/><\/div>\n<p>&nbsp;<\/p>\n<hr \/>\n<h2>The CSP Pitch vs. Reality<\/h2>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>The CSP Pitch:<\/strong>\u00a0<em>\u201cAll your Microsoft licenses, one simple monthly bill, total flexibility, and no upfront commitment!\u201d<\/em>\u00a0If you\u2019ve sat through a CSP sales presentation, this likely sounds familiar. The\u00a0<strong>sales narrative<\/strong>\u00a0paints CSP as a cure-all: easy subscription licensing, scalable plans, and a friendly partner to handle everything. It\u2019s an enticing pitch, especially for organizations weary of long Enterprise Agreements.<\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>The Reality:<\/strong>\u00a0<em>What they don\u2019t tell you is\u2026<\/em> there are limitations and fine print behind those promises. Let\u2019s break down a few examples of the sales claims versus the real-world truth:<\/div>\n<ul>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Flexibility Claim:<\/strong>\u00a0<em>\u201cChange or cancel anytime.\u201d<\/em><br \/>\n<strong>Here\u2019s the catch:<\/strong>\u00a0With the new CSP\u00a0<strong>New Commerce Experience (NCE)<\/strong>, if you opt for an annual plan to secure a better rate, you\u00a0<strong>cannot reduce your license count until the term is up<\/strong>. <strong>Month-to-month plans<\/strong> are available, but they cost about\u00a0<strong>20% more<\/strong>. <strong>Monthly billing is 5% more<\/strong> expensive than annual billing. Flexibility exists \u2013 but it might come at a higher price or with conditions (more on this in the next section).<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Cost Savings Claim:<\/strong>\u00a0<em>\u201cCSP is cheaper for everyone.\u201d<\/em><br \/>\n<strong>In reality:<\/strong>\u00a0Smaller businesses may find CSP cost-effective, but larger enterprises often get better volume discounts with an\u00a0<strong>Enterprise Agreement (EA) <\/strong>(<a href=\"https:\/\/www.schneider.im\/lu\/microsoft-online-services-pricing-consistency-update\/\">eventhough price level discounts (A\u2013D) for Online Services will disappear in EA\/MPSA<\/a>). CSP pricing is based on Microsoft\u2019s retail prices. For big organizations with hundreds or thousands of seats, an EA could actually yield <strong>lower per-user costs<\/strong> once negotiated. CSP can save money in the right scenario, but it\u2019s not a universal truth. There are <a href=\"https:\/\/www.schneider.im\/lu\/category\/microsoft-promotionen-lu\/\">CSP promos<\/a> on some major products available though.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Simplicity Claim:<\/strong>\u00a0<em>\u201cOne partner handles it all, so it\u2019s simpler.\u201d<\/em><br \/>\n<strong>Unspoken truth:<\/strong>\u00a0That \u201cone partner\u201d might be reliant on\u00a0<strong>another distributor behind the scenes<\/strong> (if they are an indirect CSP). So when an issue arises, there could be a chain of support (Partner -&gt; Distributor -&gt; Microsoft), which can delay issues and make things complicated. Also, having a single point of contact is convenient, but it also means you <strong>depend heavily on that partner\u2019s competence and honesty<\/strong>.<\/div>\n<\/li>\n<\/ul>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">In short, the standard CSP pitch isn\u2019t false \u2013 but it\u2019s\u00a0<strong>incomplete<\/strong>. This guide will fill in those blanks so you know exactly what you\u2019re signing up for.<\/div>\n<p>&nbsp;<\/p>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><img decoding=\"async\" class=\"aligncenter size-large wp-image-63810\" src=\"https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-10-Graphics-Neutral-Microsoft-Wallpapers-7-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-10-Graphics-Neutral-Microsoft-Wallpapers-7-800x533.jpg 800w, https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-10-Graphics-Neutral-Microsoft-Wallpapers-7-500x333.jpg 500w, https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-10-Graphics-Neutral-Microsoft-Wallpapers-7-150x100.jpg 150w, https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-10-Graphics-Neutral-Microsoft-Wallpapers-7-768x512.jpg 768w, https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-10-Graphics-Neutral-Microsoft-Wallpapers-7-1536x1024.jpg 1536w, https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-10-Graphics-Neutral-Microsoft-Wallpapers-7-2048x1365.jpg 2048w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/div>\n<p>&nbsp;<\/p>\n<hr \/>\n<h2>Flexibility \u2014 But at What Cost?<\/h2>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">One of CSP\u2019s biggest selling points is\u00a0<strong>month-to-month flexibility<\/strong>. It\u2019s true that CSP lets you adjust your cloud subscriptions on a regular basis, which sounds ideal in a fast-changing business environment. Need to add 50 users this month? Sure. Want to remove 30 next month?\u00a0<em>Well\u2026 not so fast.<\/em><\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>The New Commerce Experience (NCE)<\/strong>, meaning the new CSP, introduced new rules that redefine what \u201cflexible\u201d means:<\/div>\n<ul>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Monthly vs. Annual Commitments:<\/strong>\u00a0Under NCE, you have options. You can go\u00a0<strong>month-to-month with no long-term commitment<\/strong>, or you can\u00a0<strong>commit to a 12-month (or even 36-month) term<\/strong>. The monthly plan offers ultimate flexibility \u2013 you can drop licenses or cancel from one month to the next.\u00a0<strong>But<\/strong>\u00a0this flexibility comes at roughly a\u00a0<strong>20% price premium<\/strong>\u00a0on your subscription costs. It\u2019s the \u201ccost of agility.\u201d If you commit annually or multi-year, you pay less per seat, but you\u2019re then\u00a0<em>locked in<\/em> for that term (barring <a href=\"https:\/\/learn.microsoft.com\/en-us\/partner-center\/customers\/new-commerce-cancellation-policy\">cancellation windows depending on the type of license<\/a> at the start of the term).<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Scaling Down Isn\u2019t So Simple:<\/strong>\u00a0Imagine your company\u00a0<strong>hires 100 new employees<\/strong>\u00a0in 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,\u00a0<strong>you cannot reduce that count until your annual term is up.<\/strong>\u00a0You\u2019re stuck paying for those 50 extra seats until renewal. The CSP model is very friendly when scaling\u00a0<strong>up<\/strong>\u00a0(you can add licenses any time and just pay pro-rated for the remainder of the term), but scaling\u00a0<strong>down<\/strong>\u00a0has restrictions if you\u2019re on a committed term.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>What Flexibility Really Means:<\/strong>\u00a0In practice, \u201cflexibility\u201d means you have the\u00a0<strong>option<\/strong>\u00a0to choose a monthly term contract \u2013 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 \u2013 but you sacrifice the ability to downsize during that year.<\/div>\n<\/li>\n<\/ul>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Example:<\/strong>\u00a0<em>Contoso Industries<\/em>, a mid-size firm, loved the idea of CSP flexibility. They signed up for 200 licenses on an annual term to get better pricing. Six months in, they wanted to drop 20 licenses due to department cuts \u2013 only to learn they\u00a0<strong>had to keep (and pay for) all 200 until the year was over<\/strong>. In hindsight, Contoso might have put some of those users on monthly terms, or even considered a hybrid approach (core users on annual commit, a buffer on monthly). The lesson?\u00a0<em>Flexibility isn\u2019t automatic; you have to plan for it.<\/em><\/div>\n<div><\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Key takeaway:<\/strong>\u00a0CSP\u00a0<strong>can<\/strong>\u00a0be flexible, but understand the\u00a0<strong>cost of that flexibility<\/strong>. If a provider simply says \u201csure, it\u2019s flexible, no worries,\u201d without explaining the\u00a0<strong>trade-offs (cost vs. commitment)<\/strong>, consider that a red flag. Always ask:\u00a0<em>\u201cWhat happens if I need to reduce my licenses or change mid-term?\u201d<\/em> A trustworthy partner will give you a straight answer about costs or restrictions before you sign on the dotted line.<\/div>\n<p>&nbsp;<\/p>\n<div><img decoding=\"async\" class=\"aligncenter size-full wp-image-47119\" src=\"https:\/\/www.schneider.im\/media\/2024\/11\/SCHNEIDER-IT-MANAGEMENT-2024-11-06-Update-Website-Microsoft-Azure-2.jpg\" alt=\"\" width=\"800\" height=\"450\" srcset=\"https:\/\/www.schneider.im\/media\/2024\/11\/SCHNEIDER-IT-MANAGEMENT-2024-11-06-Update-Website-Microsoft-Azure-2.jpg 800w, https:\/\/www.schneider.im\/media\/2024\/11\/SCHNEIDER-IT-MANAGEMENT-2024-11-06-Update-Website-Microsoft-Azure-2-500x281.jpg 500w, https:\/\/www.schneider.im\/media\/2024\/11\/SCHNEIDER-IT-MANAGEMENT-2024-11-06-Update-Website-Microsoft-Azure-2-150x84.jpg 150w, https:\/\/www.schneider.im\/media\/2024\/11\/SCHNEIDER-IT-MANAGEMENT-2024-11-06-Update-Website-Microsoft-Azure-2-768x432.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/div>\n<p>&nbsp;<\/p>\n<hr \/>\n<h2>The Hidden Complexity of CSP Licensing<\/h2>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">On the surface, CSP licensing sounds straightforward: you just pay per user per month for whatever Microsoft service you need. However, anyone who\u2019s dealt with Microsoft licensing knows there\u2019s always fine print.\u00a0<strong>CSP is no exception \u2013 in fact, it adds new layers of complexity that even seasoned IT managers can find confusing.<\/strong><\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Here are some of the hidden complexities you should be aware of:<\/div>\n<ul>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Different Rules for Different Products:<\/strong>\u00a0The CSP program covers a\u00a0<strong>wide range of Microsoft products<\/strong>\u00a0\u2013 Microsoft 365, Azure, Dynamics 365, Power Platform, Windows 365, and even some perpetual software licenses. Each of these product lines can have\u00a0<strong>different licensing rules within CSP.<\/strong> 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\u2019s not one-size-fits-all but a patchwork of terms and conditions that needs to be navigated by experts.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Regional and Currency Nuances:<\/strong>\u00a0CSP 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\u00a0<strong>transferring licenses or standardizing CSP across regions is trickier than expected.<\/strong>\u00a0For 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 \u2013 there\u2019s no simple \u201ctransfer\u201d between GEOs in some cases. These regional quirks add complexity for global companies.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Partner Variability:<\/strong>\u00a0Under CSP, a lot of the\u00a0<strong>licensing experience is determined by your partner.<\/strong>\u00a0Each 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\u00a0<strong>portal or tools<\/strong>\u00a0you use to manage licenses can differ as well \u2013 some partners have their own customer portal layered on top of Microsoft\u2019s system, while others might manage changes for you. This means if you change CSP partners, your experience of managing licenses might change too. It\u2019s not as seamless as just logging into Microsoft\u2019s site (though you do have the standard Microsoft 365 admin center for user management, license assignment, etc., the purchasing aspect is partner-driven).<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Licensing Transitions and Misalignment:<\/strong>\u00a0It\u2019s easy to assume that a license is a license, but moving from one program to another can have unexpected effects.\u00a0<strong>Example:<\/strong>\u00a0<em>Example Corp<\/em>\u00a0had 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\u00a0<strong>CSP doesn\u2019t include Software Assurance<\/strong> 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: <em>Contoso Corp<\/em> 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\u2019s easy to get tangled in the weeds of what\u2019s allowed where.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Product Lifecycle and Subscription Alignment:<\/strong> 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 \u2013 or even better: your experienced CSP partner(!) \u2013 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.<\/div>\n<\/li>\n<\/ul>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">All this complexity means that\u00a0<strong>CSP requires as much strategic planning as any other licensing program<\/strong>. It\u2019s not \u201cjust pay as you go\u201d \u2014 not if you want to optimize costs and avoid surprises. The best approach is to work with a partner who deeply understands these nuances (for example,\u00a0<strong>SCHNEIDER IT MANAGEMENT<\/strong> specializes in Microsoft licensing across buying programs for medium and large organizations).<\/div>\n<div><\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Bottom line:<\/strong>\u00a0Don\u2019t mistake CSP\u2019s\u00a0<em>simple billing concept<\/em> for an actually simple licensing experience. It pays to have an expert translate the fine print and tailor the licensing model to your organization\u2019s needs. Microsoft\u2019s documentation can be liek a labyrinth; a good partner will act as your guide through the maze.<\/div>\n<p>&nbsp;<\/p>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><img decoding=\"async\" class=\"aligncenter wp-image-43668 size-full\" src=\"https:\/\/www.schneider.im\/media\/2024\/07\/SCHNEIDER-IT-MANAGEMENT-2024-07-16-Update-Website-Microsoft-Azure-OpenAI-background.avif\" alt=\"\" width=\"3200\" height=\"952\" srcset=\"https:\/\/www.schneider.im\/media\/2024\/07\/SCHNEIDER-IT-MANAGEMENT-2024-07-16-Update-Website-Microsoft-Azure-OpenAI-background.avif 3200w, https:\/\/www.schneider.im\/media\/2024\/07\/SCHNEIDER-IT-MANAGEMENT-2024-07-16-Update-Website-Microsoft-Azure-OpenAI-background-300x89.avif 300w, https:\/\/www.schneider.im\/media\/2024\/07\/SCHNEIDER-IT-MANAGEMENT-2024-07-16-Update-Website-Microsoft-Azure-OpenAI-background-800x238.avif 800w, https:\/\/www.schneider.im\/media\/2024\/07\/SCHNEIDER-IT-MANAGEMENT-2024-07-16-Update-Website-Microsoft-Azure-OpenAI-background-150x45.avif 150w, https:\/\/www.schneider.im\/media\/2024\/07\/SCHNEIDER-IT-MANAGEMENT-2024-07-16-Update-Website-Microsoft-Azure-OpenAI-background-768x228.avif 768w, https:\/\/www.schneider.im\/media\/2024\/07\/SCHNEIDER-IT-MANAGEMENT-2024-07-16-Update-Website-Microsoft-Azure-OpenAI-background-1536x457.avif 1536w, https:\/\/www.schneider.im\/media\/2024\/07\/SCHNEIDER-IT-MANAGEMENT-2024-07-16-Update-Website-Microsoft-Azure-OpenAI-background-2048x609.avif 2048w\" sizes=\"(max-width: 3200px) 100vw, 3200px\" \/><\/div>\n<p>&nbsp;<\/p>\n<hr \/>\n<h2>Indirect vs. Direct CSP: Why Most Clients Don\u2019t Know the Difference<\/h2>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Not all CSP partners are created equal. One little-known fact is the distinction between\u00a0<strong>Direct CSP<\/strong>\u00a0providers and\u00a0<strong>Indirect CSP<\/strong>\u00a0providers. As a client, you might not even be aware of which type your partner is \u2013 but it can significantly affect your experience.<\/div>\n<div><img decoding=\"async\" class=\"aligncenter size-large wp-image-63948\" src=\"https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-15-Website-CSP-Partner-types-800x231.png\" alt=\"\" width=\"800\" height=\"231\" srcset=\"https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-15-Website-CSP-Partner-types-800x231.png 800w, https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-15-Website-CSP-Partner-types-500x144.png 500w, https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-15-Website-CSP-Partner-types-150x43.png 150w, https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-15-Website-CSP-Partner-types-768x221.png 768w, https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-15-Website-CSP-Partner-types.png 1276w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Direct CSP (Tier-1):<\/strong>\u00a0A Direct CSP partner has a\u00a0<strong>direct relationship with Microsoft<\/strong>. They handle your billing and support in-house, and they communicate with Microsoft directly for provisioning and issue resolution. Direct partners have met Microsoft\u2019s stringent requirements (such as providing support infrastructure, billing systems, having lots of certified Microsoft licensing professionals, and achieving certain sales volumes). Because of this, a Direct CSP like <em>SCHNEIDER IT MANAGEMENT<\/em>\u00a0tends to have\u00a0<strong>more control and insight<\/strong>\u00a0into your licensing. We can set custom terms, directly escalate issues to Microsoft, and often have access to better training and resources. Essentially, you\u2019re dealing with a provider who is\u00a0<strong>plugged straight into Microsoft<\/strong>\u00a0without a middleman.<\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Indirect CSP (Tier-2):<\/strong>\u00a0An Indirect CSP partner, often smaller or newer firms,\u00a0<strong>works through a distributor<\/strong>\u00a0(also called an Indirect Provider). This distributor is another company authorized by Microsoft to handle CSP transactions. In an indirect scenario, your CSP partner is actually a customer of a larger distributor. That distributor handles a lot of the heavy lifting \u2013 like providing the commerce platform and support backbone. So when you ask your partner for a new license, they in turn request it from the distributor\u2019s system, which then connects to Microsoft. Support issues may also route through the distributor.<\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Why it matters:<\/strong><\/div>\n<ul>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Support and Escalation:<\/strong> With a Direct CSP, if there\u2019s 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\u2019s support process. That could mean slower response times or a game of \u201ctelephone\u201d 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 \u2013 adding extra layers, potentially costing you time and money.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Transparency:<\/strong>\u00a0Indirect partnerships can introduce some\u00a0<strong>opacity in pricing and responsibilities<\/strong>. You might get a bill from your partner, but behind that, the distributor has their pricing to the partner. While this isn\u2019t inherently bad (many indirect partners offer very competitive pricing and good service), it\u2019s 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.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Control:<\/strong> Direct CSPs have more control over the tools and portals used to manage your subscriptions. Indirect CSPs often use the distributor\u2019s portal (this usually looks like a normal portal, because it is white labelled). If you ever switch partners (which is possible \u2013 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\u2019t have to get involved in that technical detail, but it\u2019s good to know that differences exist.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Knowledge and Resources:<\/strong>\u00a0Achieving 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\u00a0<strong>more experienced and invested<\/strong> 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\u2019re 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, <em>\u201cWho is your distributor?\u201d<\/em> \u2013 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&#8230;)<\/div>\n<\/li>\n<\/ul>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Many clients don\u2019t know to ask this, but it\u2019s absolutely okay to ask your CSP provider:\u00a0<strong>\u201cAre you a direct Microsoft CSP partner, or do you work through a distributor?\u201d<\/strong>\u00a0A reliable partner will be transparent about it. In fact, the very act of them explaining how it works is a good sign (it shows they\u2019re not hiding the nature of their business relationship).<\/div>\n<div><\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">At\u00a0<strong>SCHNEIDER IT MANAGEMENT<\/strong>, we\u2019re proud to be a\u00a0<strong>Direct CSP<\/strong>. This was a strategic decision \u2013 it means we can give our clients the fastest, most transparent service possible. And because we\u2019re also a Licensing Solutions Provider (able to offer Enterprise Agreements and more), we have the\u00a0<strong>full spectrum of options<\/strong>\u00a0at our fingertips. More on that later, but the key point here: know your partner\u2019s status. It can make a difference in how much\u00a0<strong>control and clarity<\/strong>\u00a0you have in your CSP journey.<\/div>\n<p>&nbsp;<\/p>\n<hr \/>\n<h2>The New Commerce Experience (NCE): Flexibility Redefined or Restricted?<\/h2>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">We\u2019ve mentioned NCE a few times already, but it\u2019s worth its own section because\u00a0<strong>Microsoft\u2019s New Commerce Experience has fundamentally changed CSP<\/strong>\u00a0in recent years. Introduced in 2022 for seat-based subscriptions, NCE was Microsoft\u2019s way of standardizing and streamlining their cloud subscription billing across all channels (CSP, direct Web, etc.). The big question: Did NCE make things more flexible, or more restrictive?<\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>What NCE Changed:<\/strong><\/div>\n<ul>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Standardized Terms:<\/strong>\u00a0Before NCE, CSP was already flexible with mostly annual subscriptions (paid monthly) and the ability to cancel anytime with 30 days\u2019 notice. NCE brought in defined terms:\u00a0<strong>monthly, 1-year, or <a href=\"https:\/\/www.schneider.im\/lu\/microsoft-csp-upgrade-from-1-year-to-3-year-term-subscriptions\/\">3-year subscription terms <\/a><\/strong>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\u2019re committing for that duration (billed monthly or upfront, your choice, but commitment length is fixed).<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Price Lock vs. Price Increases:<\/strong>\u00a0Under 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\u2019s price increases (and Microsoft\u00a0<strong>has<\/strong>\u00a0been raising prices on many products recently). However, the flip side is if you go monthly term,\u00a0<strong>your pricing could change month to month<\/strong> if Microsoft changes prices, and you\u2019re 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\u2019ll pay more overall. Planning is the key.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Cancellation Policy:<\/strong> As noted earlier, NCE introduced strict <strong>cancellation or reduction windows<\/strong> at the start of a new term. After that, you\u2019re 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 <strong>overview of cancellation windows:<\/strong><\/div>\n<\/li>\n<\/ul>\n<table class=\"table table-sm margin-top-none\" aria-label=\"Table 1\">\n<thead>\n<tr>\n<th>Product<\/th>\n<th>Self-serve cancellation window<\/th>\n<th>Learn more<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Perpetual software<\/strong><\/td>\n<td>Full refund within<strong> 30 calendar days<\/strong> of purchase<\/td>\n<td><a href=\"https:\/\/learn.microsoft.com\/en-us\/partner-center\/customers\/csp-software-subscriptions#canceling-perpetual-software\" data-linktype=\"relative-path\">Cancelling perpetual software<\/a><\/td>\n<\/tr>\n<tr>\n<td><strong>Software subscriptions<\/strong><\/td>\n<td>Prorated refund (except where otherwise required by law) within <strong>seven calendar days<\/strong> of purchase. For example, if you cancel on the third day, the refund is for the remaining paid period minus the three days. Partner Center doesn&#8217;t allow license reductions for software subscriptions per the NCE seven-day cancellation policy. If a partner wishes to reduce or change the number of licenses of the purchased subscription, the change must be made within the seven-day window.<\/td>\n<td><a href=\"https:\/\/learn.microsoft.com\/en-us\/partner-center\/customers\/csp-software-subscriptions#canceling-a-software-subscription\" data-linktype=\"relative-path\">Cancelling software subscriptions<\/a><\/td>\n<\/tr>\n<tr>\n<td><strong>License-based<\/strong>\u00a0(per user)<\/td>\n<td>Prorated refund within <strong>seven calendar days<\/strong> of purchase. Subscriptions created as a result of a partial upgrade inherit the cancellation window from the parent (source subscription). The cancellation window doesn&#8217;t reopen until the subscription itself renews into a new term.<\/td>\n<td><a href=\"https:\/\/learn.microsoft.com\/en-us\/partner-center\/customers\/create-a-new-subscription#cancel-a-subscription\" data-linktype=\"relative-path\">Cancelling licensed-based subscriptions<\/a><\/td>\n<\/tr>\n<tr>\n<td><strong>Marketplace offers<\/strong><\/td>\n<td><strong>SaaS<\/strong>: Full refund, excluding metered billing charges, if you cancel your SaaS subscription within <strong>72 hours<\/strong> of purchase. Free trials can be canceled at any time during the trial period, but once canceled, they can&#8217;t be reinitiated.<br \/>\nFor refunds after 72 hours, contact the partner who published the offer. If the partner approves your request, they submit a ticket to process the cancellation and refund through the marketplace.<br \/>\n<strong>Business Central<\/strong>: To\u202freceive\u202fa\u202frefund,\u202fyou\u202fmust\u202fcancel\u202fsubscriptions\u202fwithin\u202fseven days\u202fof\u202fpurchase\u202for\u202frenewal.<\/td>\n<td><a href=\"https:\/\/learn.microsoft.com\/en-us\/marketplace\/refund-policies\" data-linktype=\"absolute-path\">Refund policy for Microsoft AppSource and Azure Marketplace<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Alignment with Other Channels:<\/strong>\u00a0A 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\u2019re willing to pay more.<\/div>\n<\/li>\n<li><strong>More Promotions:<\/strong> We noticed that there are <strong>way more major promotions available<\/strong> for relevant products in CSP NCE, compared to the old CSP. These range <strong>typically from 10-20%<\/strong>, 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: <a href=\"https:\/\/www.schneider.im\/lu\/category\/microsoft-promotionen-lu\/\">https:\/\/www.schneider.im\/category\/microsoft-promotions\/<\/a>.<\/li>\n<\/ul>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Is NCE a Redefinition of Flexibility or a Restriction?<\/strong>\u00a0In truth,\u00a0<strong>it\u2019s both<\/strong>:<\/div>\n<ul>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">It\u2019s 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.<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">It\u2019s a redefinition of flexibility in that Microsoft basically said:\u00a0<em>we\u2019ll still let you be flexible, but you\u2019ll pay for the privilege (premium pricing for monthly terms)<\/em>.<\/li>\n<\/ul>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">From Microsoft\u2019s perspective, NCE was about giving customers choice while encouraging more predictability. From a customer perspective, NCE means you\u00a0<strong>must be more deliberate<\/strong> with your CSP decisions. It also means some of the older advice or assumptions about CSP might now be outdated.<\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">However, CSP is becoming an ever more complete licensing program, with more term-options and products becoming available. One major issue is still that a lot of on-premises solutions are not yet available via CSP.<\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">A good CSP will sell you part of your licenses via CSP and another part (the on-prem related one) via an Enterprise Agreement (EA) or Microsoft Products and Services Agreement (MPSA). Most CSPs will not tell you this. Why? Because only Licensing Solution Providers (LSPs) can sell via EA\/MPSA (these programs run under the name of Volume Licensing). There are only ~100 LSPs in the world, while there are tens of thousands of normal CSP partners.<\/div>\n<div><\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Practical tip:<\/strong> Use NCE\u2019s options to your advantage. If you\u2019re unsure about a service, maybe put it on a monthly term initially and then switch to annual when confident. Or use annual for your stable base of users and monthly for the uncertain ones (even though that split might complicate management a bit, it could save money and provide flexibility where needed). A knowledgeable partner can help design such a licensing strategy.<\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">There are also trial licenses available. However, these can erase your promotional discount right, so consult a licensing professional first.<\/div>\n<p>&nbsp;<\/p>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><img decoding=\"async\" class=\"aligncenter wp-image-56320 size-full\" src=\"https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-8603.jpg\" alt=\"\" width=\"2400\" height=\"1600\" srcset=\"https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-8603.jpg 2400w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-8603-500x333.jpg 500w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-8603-800x533.jpg 800w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-8603-150x100.jpg 150w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-8603-768x512.jpg 768w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-8603-1536x1024.jpg 1536w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-8603-2048x1365.jpg 2048w\" sizes=\"(max-width: 2400px) 100vw, 2400px\" \/><\/div>\n<p>&nbsp;<\/p>\n<hr \/>\n<h2>CSP vs. EA: The Truth About Cost and Control<\/h2>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Microsoft licensing often comes down to a choice between\u00a0<strong>Cloud Solution Provider (CSP)<\/strong>\u00a0and\u00a0<strong>Enterprise Agreement (EA)<\/strong>\u00a0(or sometimes a mix of both). Each has its merits. Let\u2019s pull back the curtain on cost and control in the CSP vs EA debate.<\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">To make this comparison clear, here\u2019s a quick overview\u00a0<strong>checklist<\/strong>\u00a0of how CSP and EA stack up:<\/div>\n<ul>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Contract Commitment:<\/strong><br \/>\n<strong>CSP:<\/strong>\u00a0<strong>No minimum user count<\/strong>. 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.<br \/>\n<strong>EA:<\/strong> Typically a 3-year contract with Microsoft, often requiring 500+ users\/devices minimum (for commercial EA). It\u2019s a substantial commitment, usually chosen by mid-to-large enterprises ready to project their license needs long term. However, as of 2025, <strong>Microsoft might deny your organization getting an EA at all<\/strong>. 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.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Upfront vs Ongoing Costs:<\/strong><br \/>\n<strong>CSP:<\/strong>\u00a0Pay as you go. Billing is usually monthly for whatever licenses you have active. No large upfront payment \u2014 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).<br \/>\n<strong>EA:<\/strong>\u00a0Often 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\u2019s a\u00a0<strong>capex vs opex<\/strong>\u00a0consideration: EA can mean higher upfront spending, whereas CSP keeps it mostly as operational expense spread out.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Pricing &amp; Discounts:<\/strong><br \/>\n<strong>CSP:<\/strong> Pricing is generally based on standard list prices. Discounts in CSP are usually modest, if any, and come from the partner\u2019s margin (Microsoft itself doesn\u2019t typically discount CSP licenses for customers, except occasional promos). Large CSP orders don\u2019t automatically get a volume discount from Microsoft \u2013 though a partner might offer you a discount, if you\u2019re a big client for them, leaving the partner with a smaller piece of the pie.<br \/>\n<strong>EA:<\/strong> Volume rules &#8211; at least in the past! With an EA, the more you bought, the better the pricing tier you reached. This is called &#8220;price level discounts&#8221;, and these price levels are A, B, C, D (based on quantity). <a href=\"https:\/\/www.schneider.im\/lu\/microsoft-online-services-pricing-consistency-update\/\">These price levels are being eliminated starting November 1, 2025<\/a>. Enterprises can negotiate special pricing, especially if they\u2019re 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\u2019t license via CSP \u2014 it could be millions left on the table.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Flexibility &amp; True-ups\/downs:<\/strong><br \/>\n<strong>CSP:<\/strong>\u00a0As 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\u2019s continuous.<br \/>\n<strong>EA:<\/strong>\u00a0You 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\u00a0<strong>true-up<\/strong>\u00a0at the anniversary \u2013 reporting additional usage and paying for it retroactively for that year. If you reduce usage, you typically can\u2019t decrease your paid count until the next renewal (end of the 3-year term for traditional EA, though some EAs allow limited \u201ctrue-down\u201d 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.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>License Management &amp; Administration:<\/strong><br \/>\n<strong>CSP:<\/strong> Managed via the partner and Microsoft\u2019s cloud portals. It\u2019s generally easier for day-to-day administration \u2013 add or remove licenses via a portal, changes reflect in real time or within a day. There\u2019s no big yearly reconciliation form the customer has to send (the partner\/Microsoft just charge for what\u2019s used). Watch out though: If you click through your partner&#8217;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.<br \/>\n<strong>EA:<\/strong> 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\u2019re 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 <strong>Software Assurance<\/strong>\u00a0tracking (ensuring you maintain SA, get your benefits, etc.), which is an extra layer of management.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Included Benefits:<\/strong><br \/>\n<strong>CSP:<\/strong>\u00a0Does\u00a0<strong>not include Software Assurance (SA)<\/strong>\u00a0by default. However, many SA benefits are less relevant with cloud subscriptions (for instance, you don\u2019t need upgrade rights when you\u2019re subscribing to the latest version via Microsoft 365). Some benefits like training days or support tickets that came with SA aren\u2019t included in CSP, though a good partner may offer training or support as part of their service.<br \/>\n<strong>EA:<\/strong>\u00a0<strong>Software Assurance<\/strong>\u00a0is 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.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Partner Involvement &amp; Support:<\/strong><br \/>\n<strong>CSP:<\/strong>\u00a0You\u00a0<strong>must have a partner<\/strong> (even if it\u2019s a Direct Market Reseller like a big online store, that\u2019s 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\u2019re 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.<br \/>\n<strong>EA:<\/strong>\u00a0You typically work with a\u00a0<strong>Licensing Solution Provider (LSP)<\/strong> 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 \u201cdirect customer\u201d of Microsoft in terms of the licensing contract. You often get a Microsoft account manager or technical specialist assigned to your account once you\u2019re big enough.<\/div>\n<\/li>\n<\/ul>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">In summary,\u00a0<strong>CSP vs EA<\/strong>\u00a0often comes down to\u00a0<strong>size, complexity, and flexibility needs<\/strong>:<\/div>\n<ul>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">For a lean small-to-mid business that values monthly billing and low commitment, CSP is usually the way to go.<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">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).<\/li>\n<\/ul>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">There isn\u2019t a one-size-fits-all answer \u2014 and importantly, it\u2019s not an either\/or in all cases. Some organizations use\u00a0<strong>a mix<\/strong>: for example, an enterprise might have an EA for their core workforce, but use CSP for a specific subsidiary or for Azure dev\/test subscriptions to keep them separate. A savvy approach can maximize benefits of both. Ask an professional to optimize your Microsoft licensing strategy based on your requirements &#8211; this will save you thousands in licensing costs.<\/div>\n<p>&nbsp;<\/p>\n<hr \/>\n<h2>What Microsoft Partners Won\u2019t Tell You<\/h2>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Let\u2019s pull back the curtain on the industry a bit. As a Microsoft licensing partner ourselves, we\u2019ve seen a range of practices out there. Many Microsoft partners are honest and have their clients\u2019 best interests at heart. But,\u00a0<strong>there are some common things that less-transparent partners might not tell you<\/strong>\u00a0upfront:<\/div>\n<ul>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>\u201cWe can only sell CSP (so that\u2019s all we\u2019ll recommend).\u201d<\/strong>\u00a0Some partners push CSP for\u00a0<em>every<\/em>\u00a0scenario, even when an Enterprise Agreement or other licensing model might be more cost-effective, simply because they\u00a0<strong>aren\u2019t certified to sell you an EA or don\u2019t have the expertise<\/strong>\u00a0for it. If a partner never even brings up alternatives like EA or Microsoft\u2019s volume licensing, that could be a sign they\u2019re steering you towards what\u2019s best for\u00a0<em>them<\/em>, not you. At SCHNEIDER IT MANAGEMENT, we deliberately became an LSP (Licensing Solutions Provider) in addition to CSP, so we can offer\u00a0<strong>all<\/strong>\u00a0licensing programs and give objective advice.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Hidden Markups or Fees:<\/strong>\u00a0Microsoft 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\u2019s higher than Microsoft\u2019s MSRP without clearly explaining what extra service you\u2019re paying for. For instance, if Microsoft\u2019s price is $20\/user\/month and the partner charges $22, that extra $2 might be for their added support or a bundled security service \u2013 or it might be just margin. A good partner will be upfront:\u00a0<em>\u201cMicrosoft\u2019s price is $20, our managed support adds $2, here\u2019s what you get for it.\u201d<\/em>\u00a0Others might just hope you don\u2019t notice the gap.\u00a0<strong>Ask for clarity<\/strong> on any charges above official Microsoft pricing. To be clear though: Ideally, the CSP shouldn&#8217;t charge anything on top, compared to Microsoft list prices.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Partner Lock-In via Portals or Services:<\/strong> 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\u2019s possible to switch CSP partners without interrupting your service (it\u2019s your Microsoft tenant, after all), but a partner might not tell you that because they don\u2019t 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.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Over-selling \u201cFlexibility\u201d While Underplaying Costs:<\/strong> We touched on how flexibility can come with a price. Some partners will wave the flexibility flag proudly but won\u2019t proactively warn you about the 20% premium on a monthly term, or the cancellation windows. They might figure they\u2019ll explain it if you happen to ask later or, worse, hope you won\u2019t notice on the invoice. We think that\u2019s bad practice and think you deserve to know what you\u2019re signing up for from day one.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Pushing Long Commitments without Analysis:<\/strong>\u00a0On 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\u2019s the right choice. Why would a partner do that? Because it secures the revenue longer and reduces the chance you\u2019ll switch providers or drop licenses. If a partner is urging a 3-year lock-in on CSP, make sure they\u2019ve given you a solid reason (e.g., \u201cMicrosoft is offering a 10% discount for 3-year on this product and your usage is very steady, so it could make sense\u201d). If the reasoning sounds like\u00a0<em>\u201cbecause it\u2019s easier\u201d (for who?),<\/em>\u00a0be cautious.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Indirect Partner Dependency:<\/strong>\u00a0As 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\u2019s an outage or issue with the distributor\u2019s systems, your partner might be unable to provision or support you until that\u2019s fixed. Also, if you have credit terms or billing arrangements, you\u2019re effectively dealing with a pass-through from the distributor. While not necessarily a problem, it\u2019s something many customers would like to know. We\u2019ve heard stories where a client was promised something by a partner (\u201cyes, we can extend your payment due date this month\u201d) only for the distributor to say no, leaving the client in a lurch last-minute.<\/div>\n<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\">\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>That You Might Be Too Big (or Too Complex) for CSP:<\/strong>\u00a0Some partners won\u2019t tell a growing client that they are reaching a point where an Enterprise Agreement might be more beneficial, because they don\u2019t want to lose the CSP business. It\u2019s 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\u2019s 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\u2019s interests. In many cases, we continue to manage those clients\u2019 licensing under the EA anyway, so it\u2019s a win-win to be transparent.<\/div>\n<\/li>\n<\/ul>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>How to spot biased advice:<\/strong>\u00a0If every answer from a partner is \u201cCSP is the best (and only) way,\u201d or you get vague answers to questions about alternatives, it\u2019s time to press for details. Partners should be able to articulate\u00a0<em>why<\/em>\u00a0they recommend CSP for you specifically, and what the downsides are. If they can\u2019t or won\u2019t, that\u2019s a sign you might not be hearing the full story.<\/div>\n<div><\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Remember,\u00a0<strong>a good Microsoft partner is like a good doctor<\/strong>\u00a0\u2013 should explain all options, discuss side effects, and sometimes tell you things you might not want to hear (like \u201cthat quick fix isn\u2019t in your best interest long-term\u201d). It\u2019s your right as a customer to get the complete picture.<\/div>\n<p>&nbsp;<\/p>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><img decoding=\"async\" class=\"aligncenter wp-image-56105 size-large\" src=\"https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9152-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9152-800x533.jpg 800w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9152-500x333.jpg 500w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9152-150x100.jpg 150w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9152-768x512.jpg 768w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9152-1536x1024.jpg 1536w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-9152-2048x1365.jpg 2048w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/div>\n<p>&nbsp;<\/p>\n<hr \/>\n<h2>How to Choose a CSP Partner Who Tells You the Truth<\/h2>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Given all these insider insights, you might be wondering:\u00a0<em>\u201cHow do I make sure I pick a partner who\u2019ll shoot straight with me?\u201d<\/em>\u00a0Here are some tips and things to look for when choosing a CSP (or any Microsoft licensing) partner:<\/div>\n<ol>\n<li class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Ask the Hard Questions Upfront:<\/strong>\u00a0Don\u2019t 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\u2019t shy away from admitting situations where CSP isn\u2019t the best fit. For example, pose a scenario:\u00a0<em>\u201cIf I had 1000 users, would you still recommend CSP, and why? What changed within CSP? What other licensing programs can you offer?\u201d<\/em>\u00a0Their answer will tell you a lot about their philosophy.<\/li>\n<li class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Check Their Credentials:<\/strong>\u00a0Is the partner you\u2019re evaluating a\u00a0<strong>Microsoft Direct CSP<\/strong>? Are they also a\u00a0<strong>Licensing Solutions Provider (LSP)<\/strong>\u00a0authorized 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 \u2013 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.<\/li>\n<li class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Look for Transparency in Pricing and Terms:<\/strong>\u00a0A good partner will provide clear quotes that show what you\u2019re 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 \u201cit\u2019s too complex to break out,\u201d that\u2019s a red flag. Additionally, the partner should clearly explain the terms you\u2019re entering \u2013 the duration, cancellation policies, etc., ideally in writing. Look for partners that even provide comparisons (e.g., \u201cif we did this under EA it would look like X, under CSP it looks like Y\u201d) \u2013 that shows they\u2019re trying to educate you, not confuse you.<\/li>\n<li class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Evaluate Their Support Structure:<\/strong>\u00a0Since CSP means the partner is your first line of support, ask about how they handle support. Questions like:\u00a0<em>\u201cDo you provide 24\/7 support for critical issues? How do you escalate issues to Microsoft if needed? Do you have dedicated licensing specialists?\u201d<\/em> The answers will indicate if they have a solid setup or if they\u2019re winging it. A partner who can tell you, \u201cYes, we have a dedicated support hotline and a process to escalate to Microsoft Premier support if needed\u201d is giving you confidence. One that says \u201cjust email us whenever\u201d might not have the maturity you want, which is the case with most smaller CSP partners.<\/li>\n<li class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Ask for Client References or Case Studies:<\/strong>\u00a0A reliable partner should have success stories or references. You might ask,\u00a0<em>\u201cDo you have clients of a similar size\/industry that you\u2019ve helped? Can you share any examples (anonymized is fine) where you advised a client to maybe not take a deal because it wasn\u2019t right for them?\u201d<\/em>\u00a0If a partner can share a story like, \u201cYes, we had a customer who we actually recommended go to an EA because it saved them 15%, and we still helped them manage it,\u201d that\u2019s a good sign. It shows they\u2019re not afraid to do what\u2019s right even if it\u2019s extra effort.<\/li>\n<li class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Consider Value-Added Services:<\/strong> 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\u2019s something you want \u2013 it means they\u2019ll continually be looking out for you, which usually goes hand-in-hand with being transparent (because they\u2019ll regularly revisit and adjust your strategy, not sell and forget).<\/li>\n<li class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Gut Feel and Culture Fit:<\/strong>\u00a0At the end of the day, trust your gut too. How a partner communicates is important. If they are willing to\u00a0<em>educate you<\/em> during the sales process \u2013 not just sell to you \u2013 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.<\/li>\n<\/ol>\n<p>Choosing the right partner might seem like a lot of work, but it\u2019s 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.<\/p>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Why SCHNEIDER IT MANAGEMENT is different:<\/strong>\u00a0We built our business on\u00a0<strong>client-first principles<\/strong>. As a Direct CSP, we offer the hands-on support and quick response times clients need. As an LSP for Microsoft, we have the breadth to advise on any program (CSP, EA, you name it). Our approach has always been to educate and advise, even if that means recommending a solution that\u2019s less profitable for us \u2013 because we believe in long-term relationships built on trust. We tell you the things \u201cMicrosoft (or other partners) won\u2019t\u201d because making an informed decision is the first step to a successful partnership.<\/div>\n<p>&nbsp;<\/p>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-63952\" src=\"https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-15-Website-CSP-vs-EA-checklist.jpg\" alt=\"\" width=\"400\" height=\"543\" srcset=\"https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-15-Website-CSP-vs-EA-checklist.jpg 400w, https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-15-Website-CSP-vs-EA-checklist-368x500.jpg 368w, https:\/\/www.schneider.im\/media\/2025\/09\/SCHNEIDER-IT-MANAGEMENT-2025-09-15-Website-CSP-vs-EA-checklist-110x150.jpg 110w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/div>\n<p>&nbsp;<\/p>\n<hr \/>\n<h2>Conclusion: CSP Can Be Great\u2014If You Know What You\u2019re Doing<\/h2>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Microsoft\u2019s CSP program can be a great fit<\/strong> for many organizations, and it is becoming ever better. It offers convenience, scalability, and access to the latest cloud services on demand. But as we\u2019ve revealed, it\u2019s not a silver bullet without its drawbacks. The key is <em>knowledge<\/em>: knowing what you\u2019re signing up for, and knowing how to make the most of it.<\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">To recap the core truths from this insider\u2019s guide:<\/div>\n<ul>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\"><strong>CSP is flexible, but not limitless:<\/strong>\u00a0Understand the commitment vs. cost trade-offs and plan your license terms wisely.<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\"><strong>Licensing is complex under the hood:<\/strong>\u00a0Don\u2019t go in without a licensing strategy and expert advice, or you might encounter unwelcome surprises.<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\"><strong>The type of partner matters:<\/strong> Direct CSP partners bring you closer to Microsoft and often offer more transparency and better conditions; know who you\u2019re dealing with.<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\"><strong>NCE has changed the game:<\/strong>\u00a0What was true about CSP a few years ago may no longer be true today. Stay updated on policy changes.<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\"><strong>CSP vs EA vs MPSA is not one-size-fits-all:<\/strong>\u00a0Evaluate your own situation (size, budget, needs) to choose the right path, or combination of paths.<\/li>\n<li class=\"___ccc16d0 fje8fi8 f1ng9h0j f1bwykku f18jd3zf\"><strong>Not all partners will give it to you straight:<\/strong> Be proactive in questioning and choose a partner that acts as an advisor, not just a reseller.<\/li>\n<\/ul>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Ultimately,\u00a0<strong>CSP can be fantastic if you go in with eyes wide open.<\/strong>\u00a0It can give your business agility and ease of management that legacy licensing couldn\u2019t. But if mismanaged or misunderstood, it can also lead to frustration or overspending.<\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">The good news is you don\u2019t have to navigate this alone.\u00a0<strong>If you\u2019re feeling unsure about your Microsoft licensing, or just want a second opinion, reach out to us at SCHNEIDER IT MANAGEMENT.<\/strong> We\u2019re here to help you make sense of the options \u2013 whether that leads you to CSP, EA, MPSA, OV\/OVS or even a mixture of licensing programs. Our goal is to ensure your Microsoft licensing truly aligns with your business goals and budget, with no nasty surprises.<\/div>\n<div><\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><em>Microsoft CSP can be great \u2014 if you know what you\u2019re doing.<\/em>\u00a0And now, you do know a lot more than most! So use that knowledge, ask the tough questions, and make the choices that are right for your organization. We\u2019re happy to assist if you need expert guidance or just an honest conversation about your Microsoft licensing strategy.<\/div>\n<div><\/div>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Thank you for reading, and remember: when it comes to Microsoft CSP (and beyond),\u00a0<strong>don\u2019t just settle for the glossy brochure answer.<\/strong> Insist on the full story \u2013 you deserve it. See a FAQ below.<\/div>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-56225 size-full\" src=\"https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-7983.jpg\" alt=\"\" width=\"2400\" height=\"1600\" srcset=\"https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-7983.jpg 2400w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-7983-500x333.jpg 500w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-7983-800x533.jpg 800w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-7983-150x100.jpg 150w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-7983-768x512.jpg 768w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-7983-1536x1024.jpg 1536w, https:\/\/www.schneider.im\/media\/2025\/03\/SCHNEIDER-IT-MANAGEMENT-2025-03-11-Graphics-Office-People-7983-2048x1365.jpg 2048w\" sizes=\"(max-width: 2400px) 100vw, 2400px\" \/><\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<h2>FAQ: CSP Myths Debunked<\/h2>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Let\u2019s address some common questions and misconceptions about Microsoft CSP, in a frank Q&amp;A style:<\/div>\n<h3 class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Is CSP really cheaper than an Enterprise Agreement?<\/strong><\/h3>\n<p class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Not universally. CSP often has <em>lower upfront costs<\/em>\u00a0and 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 \u2013 something you can\u2019t do with CSP\u2019s standard pricing. Also, remember CSP monthly term subscriptions come at a premium. So, if you\u2019re a big organization willing to commit, EA can deliver more bang for your buck.\u00a0<strong>Bottom line:<\/strong>\u00a0CSP is cheaper for some scenarios, EA for others \u2013 it depends on scale and commitment.<\/p>\n<h3 class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Can I switch CSP partners easily if I\u2019m not satisfied?<\/strong><\/h3>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Yes.<\/strong>\u00a0You are never permanently tied to one CSP reseller for the life of your tenant. Microsoft allows customers to\u00a0<strong>move their subscriptions to a new partner<\/strong>\u00a0through a process often called \u201cpartner of record\u201d change or by re-purchasing under a new partner with coordinated transition. A good partner will even assist you in making a smooth switch if you choose to leave (because it\u2019s the right thing to do). Be wary of any partner that implies you\u2019re stuck with them. The data in your Microsoft 365\/Azure tenant remains yours \u2013 it\u2019s just the billing that changes hands. That said, timing the switch around your subscription renewal dates makes it easier (to avoid overlap or double-billing issues). But overall,\u00a0<strong>you have the freedom to change<\/strong>\u00a0if you need to. It\u2019s your business; you should have the final say.<\/div>\n<h3><strong>What happens if my CSP partner goes out of business or loses their Microsoft partnership?<\/strong><\/h3>\n<p class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Your licenses won\u2019t suddenly vanish \u2013 but you will need to <strong>transition to another CSP partner<\/strong>. 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\u2019t lose access to your services. It\u2019s wise, however, to act promptly and find a new partner so your account doesn\u2019t languish without proper support.<\/p>\n<h3 class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Does CSP include Software Assurance benefits?<\/strong><\/h3>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>No,<\/strong>\u00a0not in the traditional sense. CSP cloud subscriptions (like Microsoft 365, Dynamics 365, etc.) inherently include the right to use the software and always be on the latest version, which was one major aspect of Software Assurance (SA) in the old model. But other classic SA perks \u2013 training vouchers, extended support rights, license mobility for servers, home use programs \u2013 are generally not part of CSP. Some of those are not relevant (e.g., home use is replaced by Microsoft\u2019s Work From Home user benefits for Microsoft 365, which is separate), others you might miss. If SA benefits are crucial to you, discuss this with your partner; in some cases, an EA or a mix might be needed to retain those benefits.<\/div>\n<h3 class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>I have an Enterprise Agreement now. Can I add CSP for new stuff or do I have to stick to EA only?<\/strong><\/h3>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">You can absolutely use both. Many organizations do. For example, you might keep your core user licenses under EA but buy some niche services via CSP for a smaller group or a short-term project \u2013 it can be faster than amending an EA. Microsoft doesn\u2019t forbid mixing; however, you\u2019ll need to manage two channels which means two sets of bills and potentially two partners (or the same partner if they handle both). If you have an EA, work with your LSP partner to see if CSP might complement it in certain cases (they might even be your CSP provider, as SCHNEIDER IT MANAGEMENT is for some EA clients). Just be mindful not to double-pay: if a user is covered for a service in EA, don\u2019t also get it for them in CSP and vice versa.<\/div>\n<h3 class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><strong>Is CSP only for cloud services, or can I buy traditional licenses too?<\/strong><\/h3>\n<p class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\">Mostly cloud, but CSP has expanded. Originally CSP was all about cloud subscriptions (hence the name). Now, CSP includes what Microsoft calls \u201csoftware subscriptions\u201d 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 \u201cNew Commerce\u201d umbrella. That said, if you\u2019re primarily buying on-premises perpetual licenses and you\u2019re 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. <strong><a href=\"https:\/\/www.schneider.im\/contact\/\">Consult a LSP such as SCHNEIDER IT MANAGEMENT<\/a> for help in finding the right licensing strategy.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<div class=\"paragraph-in-scc-markdown-text ___1ngh792 ftgm304 f1iaxwol\"><em>Have more questions or need clarity on something we didn\u2019t cover?<\/em>\u00a0Feel free to reach out to our team at\u00a0<strong>SCHNEIDER IT MANAGEMENT<\/strong>. We\u2019re always here to answer questions with 100% honesty, even if it means telling you something \u201cMicrosoft doesn\u2019t advertise.\u201d After all, our mission is simple:\u00a0<strong>empower you with the knowledge to make the best decisions for your IT and licensing strategy.<\/strong>\u00a0Happy licensing!<\/div>\n","protected":false},"excerpt":{"rendered":"<p>CSP Is Not What You Think Microsoft\u2019s\u00a0Cloud Solution Provider (CSP)\u00a0program is often wrapped in polished marketing and shiny promises. We\u2019ve all heard how\u00a0\u201cCSP offers flexibility and easy cloud licensing\u201d in neatly crafted pitches. But behind the glossy slides, there are nuances that many providers hide from you. This no-fluff insider\u2019s guide cuts through the marketing [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":63031,"parent":22438,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[339,19],"tags":[],"class_list":["post-63947","page","type-page","status-publish","has-post-thumbnail","hentry","category-microsoft-cloud-solution-provider","category-microsoft-enterprise-agreement"],"_links":{"self":[{"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/pages\/63947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/comments?post=63947"}],"version-history":[{"count":9,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/pages\/63947\/revisions"}],"predecessor-version":[{"id":64288,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/pages\/63947\/revisions\/64288"}],"up":[{"embeddable":true,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/pages\/22438"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/media\/63031"}],"wp:attachment":[{"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/media?parent=63947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/categories?post=63947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.schneider.im\/lu\/wp-json\/wp\/v2\/tags?post=63947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}