Direct CSP

A direct CSP, also called a direct-bill partner, is a Microsoft partner that transacts directly with Microsoft in the Cloud Solution Provider program. The partner buys from Microsoft, owns the customer relationship, and is responsible for billing, provisioning, support, and meeting Microsoft’s program requirements itself.

Key Takeaways

  • Direct-bill partners work with Microsoft directly, without a distributor in between.
  • They own billing, provisioning, support, and compliance end to end.
  • The model carries higher requirements, including a revenue threshold and infrastructure expectations.
  • Many partners run direct and indirect at the same time depending on the market.

How the direct model works

The partner is invoiced by Microsoft, then bills its customers from its own contracts and pricing. It handles provisioning, support, and reconciliation without distributor involvement, which means it needs its own billing operation to stay accurate at scale.

Why it matters for Microsoft CSPs

Direct billing gives partners more control and often better economics, but it puts the full operational load on the partner. Billing, reconciliation, and renewals all have to be handled in-house, which is where automation becomes essential.

Direct CSP vs indirect CSP

A direct CSP transacts with Microsoft directly and carries the full responsibility. An indirect reseller works through an indirect provider (a distributor) that supplies the Microsoft relationship, in exchange for the reseller carrying fewer direct requirements.

How Work 365 supports this

Work 365 runs billing, reconciliation, and renewals for direct-bill partners on Microsoft Power Platform. See Solutions for Direct CSP Partners.

Related terms: CSP, Indirect CSP, Indirect Provider, Microsoft Partner Center.

FAQ

What is the difference between a direct-bill partner and an indirect reseller?
A direct-bill partner transacts with Microsoft directly. An indirect reseller transacts through an indirect provider.

What does a direct CSP have to handle itself?
Billing, provisioning, support, reconciliation, and Microsoft program requirements.