Beginning February 1st, 2022, partner incentives and margin opportunities will be removed from the original Azure offer in CSP.
In November 2019, Microsoft announced the new, modern Azure Plan offer in the CSP, and the intention to retire the original Azure offer in CSP in phases. In phase 2, beginning February 1st, 2022, partner incentives and margin opportunities will be removed from the original Azure offer in CSP. If you still have customers in the original Azure offer, now is the last chance to move these customers into Azure Plan.
With the Azure Plan, partners will gain access to Azure services at pay-as-you-go rates for customers under the Microsoft Customer Agreement and simplifies the Azure purchasing experience:
- You can have multiple Azure subscriptions in an Azure plan, and no longer need to submit a separate order per Azure subscription.
- Pricing are aligned to a single global pricing principle.
- You can get new, better insights on Cost Management details.
To transfer your existing customers from the original Azure offer to the new Azure Plan is easy, and will have no interruption of the delivery of service. Tech Data partners can simply transfer the original subscription with a click of a button within the StreamOne Cloud Marketplace to get started.
What is the impact on price from February 1, 2022?
The original Azure offer in CSP:
- Beginning February 1, 2022, incentivesand partner margin opportunities will be removed from the original Azure offer.
- Therefore, any consumption on the original Azure offer will be invoiced at Microsoft ERP price without any discount (partner margin).
- You will not earn any incentives (rebate/coop) for consumption after February 1, 2022.
The new, modern Azure Plan offer:
- No changes to the Azure Plan offer in CSP.
- Partners will continue to be eligible to earn partner earned credit (PEC) on Azure Plan in CSP.
- Partners with Silver or Gold Cloud Platform competency will continue to be eligible for incentives for consumption on Azure Plan in CSP.
- Note, currently all incentives are paid out as 100% rebate, not any rebate/coop split.
- If you still have customers on the original Azure offer in CSP, transit these customers to Azure Plan before February 2022 to keep partner earning opportunities.
- Familiar yourself with the concept of Partner Earned Credit to fully understand your partner earning opportunities on Azure Plan. Partner earned credit rewards partners who focus on driving customer success via value-added services that generate sustainable profitability.
- Partners with Silver or Gold Cloud Platform competency, make sure to enroll in the Microsoft Commerce Incentive (MCI) program in partner center to continue earn incentives.
To assist you in readiness, below are some of the most important topics top of mind and a few tools to find more information yourself. If any questions or concerns, please reach out to your Tech Data Business Development Manager or Cloud Solution Expert.
- 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 StreamOne Cloud Marketplace with a click of a button.
- Azure plans transfers from other partners are available. It is seamless experience and does not incur any service interruption or downtime for end customers. Please consult Tech Data Cloud Support, and Tech Data will assist the transfer.
- All calculations on Modern Azure Plan are calculated by calendar month (same like previous Azure in SES).
- However, Tech Data will not receive invoice from Microsoft until ~8th in the following calendar month.
- Therefore you as reseller will receive invoice from Tech Data ~15th for the usage in previous calendar month. Ex. consumption of January, will be invoiced ~15th February.
- Microsoft blog announcement 21/1-2021: Evolving the Azure offer in CSP
- Tech Data Battle Card
- 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
- 14 on-demand webinars with deep-dive training on Azure Plan
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