What to look for when choosing a Microsoft Cloud Distributor

My last few posts have focused on the kinds of questions a Microsoft reseller might want to ask of a prospective CSP Distributor. When I first shared them I got a really positive response, but one piece of feedback stood out. The managing director of a CSP Distributor suggested I should write an additional post from the 'other side': looking at how a reseller may need to change some behaviours and expectations.

I get to sit in on round tables and sessions where partners share their wishes, frustrations and all sorts of feedback with their CSP Distributors. It's fascinating hearing the real-world stories of what's working and what's lacking. Those stories helped me write this entire series, so here's what I think a Microsoft reseller should consider about themselves when choosing a CSP Distributor, including the growing group of partners coming to this question fresh because Microsoft has moved them off direct-bill CSP into the indirect model.

Two-way Street

As resellers demand more from their CSP Distributors, it follows that CSP Distributors will look for more from their resellers in return. The expectation is that an investment in your skills, technical enablement, marketing support and so on will translate into your accelerated growth and success.

For value to flow both ways fairly, I'd expect many CSP Distributors to ask you to commit to certain KPIs. These could be around customer seat adds, Azure consumed revenue (ACR), Microsoft 365 Copilot attach rate, or AI Design Wins through the Microsoft AI Cloud Partner Program. They want to see a return on their investment, and you should want to see one on yours.

A question to ask yourself is whether you're in a position to agree to any commitments, and to give the partnership the focus and investment to make it successful.

Community

One of the most valuable things a strong CSP Distributor can offer is access to a community of peers. These communities can open up new relationships, partnership opportunities, access to vendors, and an exclusive chance to learn from others just like you.

Communities are only successful if members participate. You may find yourself invited to round tables or other events. While it's important to listen, it's vital to contribute. CSP Distributors need your feedback, insights and candour to give guidance on how to help you best, and in sharing your perspectives and experiences you might discover someone with a solution to help you, or be able to help someone struggling.

Are you the sort of person who finds networking at these kinds of engagements challenging? (I know I do.) Send someone who is more at ease, or bring someone with you who can be an active contributor to the debate.

Communities only thrive and become rich when everyone feels they have an ability to influence and contribute.

Realism

For some people, price is still the primary concern when working with a CSP Distributor. Realistically though, CSP Distributors have to make their money somehow. If investment in your success is something you actually value (hint: it should be) then being realistic on the levels of margin you get is important.

As I've written about in my previous posts, holding a CSP Distributor to account to show the additional value is critical. Ask yourself whether sacrificing a few points of margin in exchange for access to resources and services that will help you be successful more quickly and sustainably is meaningful for you.

If not, that's OK, but you should expect a lighter-touch, more digital engagement as distributors focus their efforts on building stronger partnerships with more committed resellers. This is especially true in the AI era, where investment in Copilot enablement, agent build labs, AI Design Wins and marketplace go-to-market is expensive for the disti to provide and naturally flows to the partners who reciprocate.

The ace up your sleeve is how simple it is to change CSP Distributors. If you don't like what you're getting from one, you can switch to another with relative ease. (If you're newly moved off direct-bill CSP and haven't switched a disti before, that's worth knowing.)

Mindset & Culture

Microsoft has a particular focus on highlighting the benefits of a partnering approach; with 95% of Microsoft's commercial revenue flowing through partners. Using each other's skills and capabilities to help our customers achieve more is a good thing. It can't be done if we work in silos and only consider one view.

Embracing a learning culture, seeking different views and experiences, and maintaining a growth mindset approach is the best way to succeed. Look for CSP Distributors who demonstrate these behaviours being deeply embedded in their organisations. Ask yourself whether your organisation does, too.

Microsoft's mission is to empower every person and every organisation on the planet to achieve more. It does this through a vast network of partners who bring their differentiated skills and solutions to customers and help them realise the mission. Microsoft now talks about this through the lens of the Frontier Firm: customers operating as human-agent teams, served by partners who can sell, build, deliver and govern the things that make that possible.

As much as looking upstream to work with CSP Distributors who embrace this mission and culture, those providers will look across their partners and prioritise working closely with those who also want to learn and grow.

Conclusion

There are many aspects to being what Microsoft now calls a Frontier partner through the AI Cloud Partner Program. The outcome is always the same: customer and partner success, opportunities for real digital transformation, and finding ways to repeat those successes over and over, at scale.

My best advice, if you take away nothing else from this post or any others on the topic, is to prove and be proven to. If you say you can do something, show it. Bring your successes to life through your digital footprint. Case studies, social sharing, video shorts, podcasts; it doesn't matter which. Don't rely on someone simply taking your word for your abilities. Be proud to show them off.

Equally, demand the same level of proof from those with whom you seek to partner.

If you've worked your way through this whole series because you've been told you need to leave direct-bill CSP for the indirect model, I hope it's been useful. Find me on LinkedIn and let me know who you've ended up with, and how the move's gone. I'd love to hear.