Get ready! The Microsoft Cloud Solution Provider (CSP) program is evolving! Whether you’re a Direct Bill Partner currently thriving in the direct model or considering a shift, big changes are coming that will affect how you operate, how you support your customers, and how you grow.
Let’s break down what’s happening, why it matters, and how you can turn change into opportunity.
Understanding the Current CSP Relationship
Today, Direct Bill Partners manage their entire end-to-end relationship with Microsoft. This includes not just transacting licenses and services, but also handling billing, provisioning, support, and incentive management directly with Microsoft. For many, this structure offers a strong sense of control and direct influence over customer experience. But it also demands significant operational overhead, technical capacity, and ongoing investment in Microsoft alignment.
Historically, Microsoft allowed a broad range of partners into the Direct Bill model. That openness helped the ecosystem grow, but now, Microsoft is tightening the reins to ensure that only those most prepared to deliver on their security, performance, and customer success standards remain.
- Starting October 1, 2025, new eligibility thresholds go into effect as part of Microsoft’s FY26 CSP program update. These aren’t just checkboxes — they’re strategic criteria designed to elevate partner capabilities and drive alignment with Microsoft’s long-term goals.
What’s Changing for Direct Bill Partners?
Here are the new core requirements that Direct Bill Partners must meet to maintain their status:
- $1 million in trailing 12-month revenue: Microsoft wants to ensure that direct partners are operating at scale and delivering consistent impact.
- At least one Solutions Partner Designation: This replaces the old Gold/Silver system, focusing on validated solution area expertise.
- Passing Partner Center Security Score: Microsoft is taking security seriously — this means MFA enablement, baseline hygiene, and compliance best practices.
- Active Support Plan: Either Advanced or Premier Support for Partners is now required, ensuring high-level technical coverage and service accountability.
In addition, eligibility for Microsoft incentives now depends on:
- Holding a Solutions Partner Designation or achieving 25 Partner Capability Score points
- Generating $25,000 in revenue per solution area, which ties earnings to real performance.
These changes reinforce Microsoft’s shift toward a more reliable, secure, and quality-driven partner ecosystem. The message is clear: partners must earn their rewards through measurable value and trusted delivery.
From the Direct Bill Partner’s Perspective: Challenges and Risks
If you’re currently operating as a Direct Bill Partner, it’s fair to say these changes introduce a new layer of complexity. Not only do they require higher thresholds of revenue and technical competency, but they also impose new operational burdens — support contracts, regular security reviews, and the ability to show results in specific solution areas.
This might feel like an extra hoop to jump through, especially for partners who have already invested heavily in CSP. However, the risks of ignoring these changes are even more costly:
- Losing Direct Authorization: Failing to meet the new requirements could mean forfeiting your Direct status.
- Falling Behind Incentive Shifts: Incentives are increasingly performance-based. You may miss out on significant margins and investment opportunities.
- Slower Growth Trajectory: Without alignment to Microsoft’s priorities — like security, AI, and sustainability — you could struggle to differentiate your offerings or expand into higher-value plays.
- Reduced Customer Confidence: Clients increasingly look for Microsoft-recognized partners who demonstrate compliance, support readiness, and solution competency.
In short, inaction is not a neutral choice. But the good news is, change doesn’t have to mean chaos.
Where Others See Burden, See Opportunity
This isn’t just about meeting a set of new criteria — it’s about elevating your position within the Microsoft ecosystem. For forward-looking partners, this is the time to retool and reframe your CSP strategy.
Aligning with Microsoft’s new requirements can help you:
- Reinforce your expertise: Achieving a Solutions Partner designation or Capability Score makes your value visible to customers and Microsoft field teams.
- Optimize your practice: Cleaner billing, more secure environments, and measurable customer outcomes.
- Deepen customer relationships: With better data, more secure solutions, and improved service, you can build more resilient, longer-term partnerships.
- Open new growth paths: Meeting the bar sets you up for additional opportunities, incentive maximization, and expansion.
Rather than seeing this transition as a disruption, the most successful partners will treat it as a catalyst to level up their capabilities and accelerate their business maturity.
How to Gain an Advantage: Partner with TD SYNNEX
Making this shift doesn’t have to be overwhelming. In fact, it can be a huge win if you have the right partner in your corner! That’s where TD SYNNEX comes in. As the biggest and fastest-growing IT distributor, we make CSP simpler, safer, and more profitable.
Here’s how we help Direct Bill Partners like you:
- Simplify Operations with the StreamOne® Platform
Our StreamOne® platform handles CSP automation with elegance. Manage all your billing, provisioning, customer lifecycle (LCM), and marketplace activities securely and in one place. Plug into your PSA with APIs and access insights that make smarter decision-making easier.
- Boost Support with 24/7 Multilingual Service
Our global support network includes Microsoft-certified engineers and Premier escalation channels. You get the fastest resolutions without the hefty cost of managing support independently.
- Grow Smarter: Leverage 40+ Years of Industry Leadership
We make IT personal, building tailored business and technical development plans, giving you access to a wide network of vendor executive relationships & advisory councils, and providing you with unparalleled insights into your business performance through advanced analytics.
- Boost Profitability Through Unmatched Investment Optimization
Maximize Microsoft and TD SYNNEX incentives like Co-op, DCO, and AMM. Reduce cost-to-serve with automation, expert support, and a streamlined onboarding experience that accelerates time to value.
- Make Strategic Decisions with Total Cost of Ownership (TCO) Analysis
We perform a TCO Analysis to provide you with all the data points you need for such an important decision — support, incentives, operational overhead, margin opportunity — in order to take your next steps with peace of mind.
Real Success: The Focus Group Story
Need proof that the shift can be beneficial? Just look at Focus Group.
The UK-based IT provider transitioned from Direct to Indirect with TD SYNNEX and saw tangible improvements:
“When you’re direct, you’re a little bit on your own… when you partner with a tier two—a distribution model—you can widen that net and bring in experts that we never had access to before.”
— Laurence Glen, IT Director, Focus Group
What They Gained:
- Smooth customer migration with minimal disruption
- Simplified operations with the StreamOne® platform
- Improved analytics via Business Intelligence (BI) dashboards for actionable insight
- Access to top-tier training and partner program support
- Streamlined billing operations
They didn’t just maintain momentum — they accelerated it.
Final Thoughts: Embrace the Shift
The CSP ecosystem is evolving. While change can be daunting, it also represents a chance to reimagine how you deliver value to customers and grow within Microsoft’s increasingly strategic partner landscape!
With TD SYNNEX, you don’t just get one of the biggest and fastest-growing IT distributors — you get a partner committed to your long-term success. We help you operate more efficiently, win more often, and prepare for what’s next.
Next Step: Talk to your local Microsoft rep or TD SYNNEX advisor today to explore your CSP path forward.
