Making sense of Microsoft’s partner changes: A guide for MSPs

For years, direct-bill partners have relied on Microsoft’s program as a dependable and straightforward way to purchase and deliver Microsoft 365 licenses and other Microsoft products to customers.

But starting October 1, 2025, that model is changing.

As Microsoft evolves its Cloud Solution Provider (CSP) program, new partner requirements will reshape how partners engage with the ecosystem. Many direct-bill partners will need to reassess their procurement models, compliance processes, and customer engagement strategies—and they might need a trusted distributor to continue delivering value to their customers.

OpenText Cybersecurity is uniquely positioned to support your transition—whether you're a CSP reseller, value-added partner, or managed services provider. With robust infrastructure, a secure cloud platform, Microsoft expertise, and dedicated support, OpenText can help you scale and succeed in this new landscape.

So, what’s changing—and what does it mean for your business? Most importantly, how can you move forward with confidence?

Let’s take a closer look.

What’s changing in Microsoft’s partner model
From October 2025, MSPs that don’t meet Microsoft’s revised criteria will no longer be able to procure licenses directly. Instead, they will need to work with an authorized Cloud Solution Provider (CSP) to access Microsoft products for resale.

The updated model has several key requirements:

• You need to meet the new $1 million in trailing twelve-month (TTM) revenue threshold
  Only partners with more than $1 million in TTM revenue from Microsoft sales can continue as direct-bill
• You now need a relevant Solutions Partner designation
  Partners must achieve Microsoft’s updated competency benchmarks for areas such as Modern Work or Security to retain procurement rights.
• You need a security score of 80 or higher
  Partners now need to maintain a strong security posture as standard.
• You’ll need to take new regular assessments
  Annual operational assessments will test sales, security practices, and more.

Partners that don’t meet the criteria will be excluded from the program for 12 months, and your customers will be directed to new providers.

The impact on MSPs
Those that don’t meet the new thresholds will need to find other ways to ensure they can service their customers. Without direct access to Microsoft  licensing, you risk:

- Margins
Relying on ad-hoc procurement could eat into profitability, particularly if competitors move faster to secure CSP partnerships.
- Billing
Customers expect smooth, consolidated billing. Delays or errors in adapting to the new model could damage trust and increase churn.
- Competition
Larger rivals who already meet the new requirements will have a head start, positioning themselves as more reliable and compliant providers.

Why partnering with a CSP is the best route forward
For most MSPs, partnering with a CSP and authorized Microsoft distributor isn’t just a stopgap solution—it’s the sustainable way forward. CSP partnerships enable you to:

- Stay compliant. Continue to access Microsoft licenses without needing to meet the $1 million TTM threshold.
- Unlock expertise and improve support. You’ll benefit from a CSP partners’ specialized knowledge, including license management, migration support, and compliance guidance.
- Simplify operations. Many CSPs offer bundled services, automation, and integrations that reduce administrative overhead and free your team to focus on growth.
- Add even more value. With the right CSP, you can maintain competitive pricing while adding value to your customers through enhanced services and product bundles.

In short, partnering with a CSP is the best route to complying with the new rules and maintaining business as usual.

How OpenText Cybersecurity simplifies the shift
The Microsoft partner changes directly impact your ability to compete, grow, and deliver value in a shifting ecosystem. Partnering with OpenText Cybersecurity helps you convert a potentially difficult change into a powerful opportunity to strengthen customer relationships and future-proof your business.

OpenText Cybersecurity gives CSP Resellers:

- Fast, simple onboarding. Transition without disruption to your customers.
- Secure, value-added products and services. Enhance your Microsoft deployments with threat protection, backup, compliance tools, and continuity solutions.
- A proven partner ecosystem. Join more than 28,000 MSPs, VARs, and resellers who already trust OpenText Cybersecurity to streamline Microsoft license management.

OpenText Cybersecurity is here to help you every step of the way
Ready to navigate Microsoft’s new model with confidence? Talk to us today.