July 1, 2020 – September 30, 2020Updated July 1, 2020

FY20 Cloud Solution Provider Indirect Reseller Incentive

See incentive guide for full program details

Delivers a platform for partners to

own the end-to-end customer

engagement by enabling partners

to directly provision, bill, and

support Microsoft Cloud Services

for their customers

The Cloud

Solution Provider

(CSP) program

CSP Indirect Reseller incentive:

Rewards CSP Indirect Resellers, who purchase from an Indirect

Provider, for driving the activation and enablement of customers with

Microsoft-based online services.

FY20 changes at a glance

Program

launch date

New program year launch

date July 1

October 1 launch for FY20 new program design

Customer

adds

Single rate for all new

customer adds

Three unique global accelerator rate structures aligned

to Microsoft clouds

(Intelligent Cloud, Business Applications, & Modern Workplace)

From FY19 To FY20

Co-op

funds

Co-op program for CSP

Indirect Providers only

Starting January 1, 2020, co-op will launch for Direct

Bill partner and Indirect Reseller incentive programs

using a 60/40 rebate/co-op split

CSP Indirect Channel and incentives structure

Microsoft

CSP Indirect Provider

CSP Indirect Reseller

Customers

Incentives

FY20 Q1 Incentive Rate

Core Incentive (rebate only) – O365 6%

Core Incentive (rebate only) – M365, D365, Azure 8%

CSP Customer Add Accelerator (continued from FY19) 1 2%

Global Strategic Product Accelerator 2 2%

Global PSTN Calling and Conferencing Accelerator 20%

Software in CSP - Subscription 3 Core - 1.25% | Strategic - 6%

FY20 Q2 – FY21 Q1 Incentive Rate

Core Incentive – Azure billed revenue on existing platform; O365, M365 (rebate/co-op) 4%

Core Incentive – D365 (rebate/co-op) 6%

CSP Customer Add Accelerators for 3 Clouds (rebate/co-op) Varies

Global Strategic Product Accelerator 2 (rebate/co-op) 5%

Global PSTN Calling and Conferencing Accelerator (rebate/co-op) 20%

Software in CSP - Subscription 3 (rebate only) Core - 1.25% | Strategic - 6%

Azure Reserved Instance (RI) Incentive Rate

Azure RI (Paid on consumed Azure RI revenue) (rebate only) 10%

1 Unique accelerators for the 3 Microsoft Clouds (Azure, Dynamics, Modern Workplace), each with defined earning opportunity launch Oct. 1, 2019

2 A complete list of eligible products is available in the CSP Product Addendum found on MPN

3 Core = Windows Server Std | Strategic = SQL Server

FY20 Indirect Reseller Incentive: Co-op (launches January 1, 2020)

Enables partners to conduct marketing activities that increase brand awareness and drive sales pipeline growth

Facilitates focused solution practices and Centers of Excellence.

Extend existing budgets, ensuring adequate levels of Microsoft-focused marketing and readiness activities by the partner.

Increase profitability because earnings are reinvested into the business rather than being shared with customers as part of a

discounting strategy.

Drive business growth rather than being included in the company’s general account, incentive earnings are allocated to increase sales

pipeline and build focused business practices

Earnings may be invested in:

• Readiness

• Specialization development

• Microsoft certification attainment

Co-op Guidebook available on Partner Incentives on MPN

Incentive Rebate Co-op

Core 60% 40%

Accelerator 60% 40%

Microsoft will calculate monthly incentive earnings using a split of 60% rebate / 40% co-op.

Global Accelerators

FY20 incremental earning opportunity for Direct Bill partners

Global Accelerators (incremental earning opportunity) Q1 FY20 Q2 - FY21 Q1

CSP Customer Add Accelerator2%

(continued from FY19)

varies

(new for FY20)

Global Strategic Product Accelerator 2% 5%

Global PSTN Calling and Conferencing Accelerator 20% 20%

CSP Customer Adds

FY20 Q1 –no change from FY19 H2

FY20 Q2-Q4 – new for FY20

Unique customer add accelerators across

Microsoft’s three clouds

Global PSTN Calling and Conferencing

From July 1, 2019

Add-on telephone services (calling plans)

When combined with O365 can become phone

system for customer’s entire org

Global Strategic Product Accelerator

From October 1, 2019

Complete list of eligible products is available in

the CSP Product Addendum found on MPN.

CSP Customer Acquisition Accelerators for 3 CloudsUnique new customer add accelerators to drive results for each Microsoft Cloud - Launching October 1, 2019

Two earning thresholds with fixed payout amounts• New customer = customer TPID

which achieves, for the first time in a month, $1,000 USD or more in billed revenue

Note: For new customer TPIDs with initial transactions greater than $5,000 USD of revenue in a month, the partner will earn a one-time incentive of $4,000 USD

Two-part accelerator:1. Achieving new customer eligibility 2. Continued growth of that new

customer

Cap accelerator at $100,000 USD per customer

New customer = customer TPID that

reaches, for the first time in the previous 12 months, $250 USD in monthly revenue (or $3,000 USD for annual subscriptions)

Intelligent Cloud Business Applications Modern Workplace

Reward for Azure new customer sales and growth

Reward for O365/M365 new customer sales and growth

Reward for D365 new customer sales and growth

NOTE – Customer must be net new to Microsoft (measured at the TPID level) to qualify for these accelerators

Threshold

(monthly billed revenue)One-time Earning

$1,000 USD $500 USD

$5,000 USD $3,500 USD

Threshold

(monthly billed revenue)Earnings

New Customer

TPID achieves $1,000 USD

20% of Annual

Contract Value (ACV)

Growth of New Customer*

Customer TPID achieves

growth over the fiscal year

*Launches January 1, 2020

20% of ACV on

growth portion of

monthly billing above

previous high revenue

watermark

Threshold

(monthly billed revenue)

Monthly Earning

$250 USD 5% of monthly billed

revenue for 12 months

(where revenue exceeds the threshold)

Note: Includes additional seat adds for first 12 months

Local Accelerators

Product specific local accelerators

• Rewards partners with incremental incentive

• Based on billed revenue from the sale of specific products

• Local accelerator terms communicated via letters from Regional Operations Centers (ROCs)

FY20 in-market local accelerators may include

Azure Local Accelerator

Business Applications Local Accelerator

M365 Local Accelerator

O365 or Business Premium Local Accelerator

Cloud Revenue Accelerator (by exception only)

Incentive Eligibility

Eligibility type Eligibility requirement Program specific criteria

Microsoft Partner Network

(MPN) enrollmentEnrollment status Active MPN membership

Partner status &

performanceMPN competency

Attain one of the defined

competencies

Operational Onboarding Partner Center onboarding

Complete onboarding to Partner

Center including completed bank

and tax forms

Partner must attain all eligibility criteria to participate.

Incentive Eligibility – MPN competencies

To participate in the Indirect

Reseller incentive, a partner must

attain one of the named MPN

competencies at v-org level and

meet the following:

▪ Silver or Gold level competency

attainment

▪ Competency status must be

Active Earned, Active Pre-

Approved, Active Non-

Compliant or Active Inherited

Competency Level

Cloud Business Applications Silver or Gold

Cloud Customer Relationship Management* Silver or Gold

Cloud Platform Silver or Gold

Cloud Productivity Silver or Gold

Data Analytics Silver or Gold

Data Platform Silver or Gold

Enterprise Mobility Management Silver or Gold

Enterprise Resource Planning Silver or Gold

ISV* Silver or Gold

Small and Midmarket Cloud Solutions Silver or Gold

Windows and Devices Silver or Gold

* Competency retired. Partners will remain eligible under these competencies until their

competency anniversary date.

CSP Partner Incentives for 2-Tier Transactions

▪ All Indirect Reseller partners must provide a valid HQ or Location MPN

ID to the Indirect Provider (distributor); the Indirect Provider can then

attach the correct reseller to the end customer record in Partner Center

or through Partner Center API integration.

▪ Indirect Providers require a Microsoft cloud tenant with access to Partner Center. Resellers should have a Partner Center enabled tenant

but are not required for the purpose of partner incentives.

▪ The Indirect Provider is always listed as the default Partner of Record;

the Indirect Provider must enter the reseller ’s MPN ID for all 2-tier

transactions for reseller to receive incentives. ▪ After a reseller has been associated to the order as the Partner of

Record, subsequent orders will default to that organization as the

reseller.

▪ If the Partner of Record association was absent in previous transactions,

the distributor will need to retroactively update the Partner of Record information for Indirect Reseller to receive incentive earnings for those

2-tier transactions.

Earning Requirements and Product Eligibility

▪ Partners need to sell qualifying products

▪ Complete bank and tax profile (where regionally applicable)

Earning requirements

Restrictions

1

3

▪ Services purchased from Indirect Providers and sold to the end customer are not eligible revenue for this incentive.

▪ Revenue from subscriptions of Exchange Lite and other adjustments such as Internal Use Rights or trial seats are excluded. ▪ Revenue from Azure subscriptions using Azure Partner Shared Services is excluded.▪ Not all Microsoft online services are available in all markets. New services and offers may be rolled out in new markets and current

services and offers may be discontinued. As these service changes occur, customer consumption of Microsoft online services wi ll also change, resulting in different incentive earnings for partners.

▪ Microsoft online services purchased by the partner and partner affiliate, or services belonging to Microsoft or Microsoft’s a ffiliates, are not eligible for the CSP incentive.

▪ These incentives are not offered in the People’s Republic of China.

Product eligibility2

▪ All revenue, excluding Exchange Lite, is

eligible

▪ Examples of qualifying products: o Microsoft Office 365

o EMS

o Windows Intune

o CRM Online and Azure

Earnings will be calculated by multiplying the qualifying revenue by the incentive rates.

Partner Center Incentive Platform

Onboarding process 1 Payment2

▪ Newly eligible partners will be invited to Partner Center

during the program period.

▪ Partners who onboarded onto Partner Center in a previous

fiscal year do not need to re-onboard.

▪ Partners should maintain active MPN status and current

bank and tax profiles to earn throughout the fiscal year.

Partner Center additional information - dashboard3

▪ Partners can only receive payments after

completing enrollment onto Partner Center.

▪ Earnings will be calculated starting the month

onboarding is completed.

▪ Partners will be paid for their respective incentive

program through the Partner Center platform.

Initial Program Enrollment Checklist

To ensure a smooth program enrollment process, partner should

have the following items readily available:

▪ Access to company email activation invitation email

▪ PIN number (following request of the # on login page)

▪ Microsoft account (formerly Windows Live ID)

▪ Bank details (IBAN, Routing number)

▪ Beneficiary details

▪ Tax details (for example, EIN, W8, W9, etc.) where applicable

From one single secure portal, the Partner

Center Dashboard, partners can:

▪ View incentive earnings

▪ Calculate payment reconciliations and

▪ Manage users

Payments

▪ Partners may receive payments via wire transfers.

▪ Partners can only receive payments after completing

enrollment to the partner incentive tool.

▪ Partners can view their earnings and payment activities

via the Partner Center Dashboard.

Payment schedule1 Payment method2

Minimum payment threshold3

Type Frequency Expect payment within

Rebate Monthly45 days after end of earning

month

▪ If the incentive earnings are below the minimum threshold of $200 USD, those earnings will be carried over

to the following month and the partner will not receive payment.

▪ Incentive earnings under $200 USD at the end of the program year (July 1, 2018 – June 30, 2019) will be

forfeited.

Resources

• aka.ms/partnerincentives: Info and guides for Partner

Incentive programs

• aka.ms/CSPreadiness: Readiness info for Partner

participating in the CSP channel

• microsoftreadiness.com:

In-depth training for many incentive programs

Key assets1 Key locations2

Program assets Description

Incentive Guide Guide containing CSP Direct Partner incentive

overview, including product rate and eligibility

guidelines

Partner Center Training on how a Partner utilizes the Partner

Center dashboard to:

• Create Incentive Administrator(s) and Users.

• Navigate through the incentives tabs on the

Partner Center Dashboard.

• Access help and support.

http://assetsprod.microsoft.com/incentives-in-

partner-center.pdf

Other Resources Program overview slide, FAQ list, product list

addendum, training videos, etc.