When Microsoft in November 2019 announced the new modern Azure Plan offer in the CSP, they also informed partners that the previous Azure offer and platform would continue to be available, alongside the new Azure experience, for some time, to give partners time to incorporate the new Azure features with their services and transition their customers to the new experience.
At January, 21st 2021, Microsoft has announced the plan to retire the previous Azure offer in CSP in three phases:
- Phase 1 – Beginning July 21, 2021 all new Azure CSP business will be on the new Azure Plan offer.
- Phase 2 – Sometime during calendar year 2022 incentives and partner margin opportunity will be removed from the previous Azure offer. Microsoft will communicate the phase 2 start date to partners 6 months in advance.
- Phase 3 – Any remaining customers on the previous Azure offer will be migrated to the new Azure Plan offer in CSP. As with the previous phases, we will communicate the phase 3 start date to partners 6 months in advance.
More details on phase 1 beginning July 21, 2021:
In phase 1, all new Azure CSP business will be on the new Azure Plan offer. Meaning:
- For all existing reseller relationships between partners and customers in the CSP program, if the customer has already purchased the previous Azure offer, the partner may continue to transact, and the customer may continue to purchase the previous Azure offer from that partner.
- The previous Azure offer will no longer be available to net-new partners transacting in the CSP program.
- The previous Azure offer will no longer be available to net-new customers purchasing via a partner in the CSP program.
- For all new reseller relationships or new customer acquisitions, partners can only transact the new Azure offer (Azure Plan).
- For all existing reseller relationships between partners and customers, if the customer has never purchased Azure before, the partner may only transact, and customer may only purchase the new Azure offer from that partner.
With the new commerce experience partners get recognized for differentiated value-added services on an ongoing basis through the partner earned credit model. Partner earned credit rewards partners who focus on driving customer success via value-added services that generate sustainable profitability. Partners are highly encouraged to familiarize themselves with the partner earned credit model.
- All price lists in Azure Plan is in USD only. No local price lists as in previous Azure offer. This ensure a consistent pricing across countries and regions.
- Microsoft will continue to bill Tech Data in local currency based on the Microsoft published exchange rate the given month, and Tech Data will continue to bill partners in local currency.
- Therefore the price in local currency for the same service may vary month by month depending on exchange rate.
- We have no margin on Azure Plan. Instead we will get Partner Earned Credit – PEC – if we meet the requirements.
- Tech Data will invoice reseller (Microsoft MSRP price minus PEC + agreed uplift).
- This change from margin to Partner Earned Credit has been done by Microsoft to encourage resellers to start providing managed services to their customers rather than just reselling Microsoft Azure.
Partner Earned Credit
- Tech Data, our reseller or both must have 24x7 operational control and management of the customer's Azure resources in CSP.
- This means Tech Data, our reseller or both must have admin privileges on the customer’s Azure subscription, Azure resource group and Azure resource.
- Partners can gain 24x7 operational control and management of a customer's Azure resources in CSP by using different options provided through the role-based access control feature (RBAC).
- Admin on Behalf Of (AOBO)
- Azure Lighthouse
- Directory or Guest Users or Service Principals
- As Tech Data, we are automatically assigned AOBO rights to perform administrative tasks on the customers Azure AD tenant on behalf of customers. Therefore we and our resellers will by default get Partner Earned Credits on any subscription in Azure Plan.
- Reseller and end-customers does not have admin rights, unless provided by us.
- However, if for some reason we provide customer the ownership of subscriptions or resources, and the customer choose to remove us, Tech Data will no longer get Partner Earned Credits, but invoiced the full MSRP price from Microsoft. We will continue to add our uplift, and the invoice to reseller will be higher than MSRP price.
- PEC is calculated daily and can be viewed in the daily usage file and monthly invoice recon file. A partner (indirect provider or indirect reseller) must have access for the entire day (24x7) to ensure they earn PEC.
- Cloud Ops does monitor the PEC eligibility and will notify us, if the PEC is lost.
- To earn incentives on Azure Plans, the reseller must be Microsoft Gold Partner on Cloud Platform Competency.
- If reseller is only silver, no incentives. If reseller is Gold on another competency, but not Cloud Platform, no incentives.
Azure Cost Management
- If you give customer access to Azure Cost Management, the customer will always see the Microsoft MSRP pricing.
- We are able to use Azure Cost Management to check if PEC is applied
- StreamOne Cloud Marketplace (SCM)
- The Modern Azure Plan is already supported by SCM. In some countries this feature may not be enabled, and we will work with Cloud Ops to ensure this is enabled in for all countries.
- Modern Azure Plan is not yet supported by SCM Insights reporting. This feature is already in development, and coming soon.
- StreamOne Ion Enterprise (SIE)
- The Modern Azure Plan is currently not fully supported in SIE in Europe.
- We expect full functionality within February, including pricebooks.
- Training and operational guide will be provided.
- Moving from the previous Azure commerce platform to the new Modern Commerce platform (Azure Plan) is a seamless experience and does not incur any service interruption or downtime.
- Important; once migrated, the customer cannot regret. No option to revert back from Azure plan to previous Azure offer.
- The migration is available in SCM with a click of a button.
- For SIE, please contact Nordic License Desk and Cloud Ops will finalize the migration.
- Azure plans transfers from other partners are available by Microsoft and needs to be done manually on PAC UI (no API) by contacting Nordic License Desk. It is a seamless experience and does not incur any service interruption or downtime for end customers.
- All calculations on Modern Azure Plan are calculated by calendar month (same like previous Azure in SIE)
- However, Tech Data will not receive invoice from Microsoft until ~8th in the following calendar month.
- Therefore reseller will receive invoice from Tech Data ~15th for the usage in previous calendar month. Ex. reseller will receive invoice for January ~15th February.
- Microsoft blog announcement 21/1-2021: Evolving the Azure offer in CSP
- Tech Data Battle Card
- Incentive Guide
- 14 on-demand webinars with deep-dive training on Azure Plan
- Microsoft PDF: Overview of availability plan
- Microsoft PDF: Compare the previous Azure Offer and the new Azure Plan Offer in CSP
- Microsoft PDF: Readiness Map
- Microsoft PDF: L100 presentation of Modern Azure Plan experience (20 pages)
- Microsoft PDF: L200 presentation of Modern Azure Plan experience (77 pages)
- Microsoft PDF: FAQ
Partner Earned Credit / Cost Management:
- Microsoft PDF: Understanding Partner Earned Credit
- Microsoft Docs: How the partner earned credit is calculated and paid
- Microsoft Docs: Roles and permissions required to earn partner earned credit
- Microsoft Docs: RBAC access
- Microsoft Docs: Reinstate admin privileges for Azure CSP subscriptions
- Azure: Cost Management for partners