Microsoft have made big changes to the CSP Program criteria- what does this mean for Resellers?

Microsoft have just announced some major changes to the way that license transacting partners are verified and approved to participate in the Microsoft CSP Program, effective 1st October 2025. Three distinct groups will experience changes; Direct Bill partners, Indirect Resellers, and even Distributors.  

Through this blog, we will demystify the changes coming to both indirect and direct bill partners for FY26 and FY27. This is what we know so far, so expect updates as we receive more information. 

What does this mean for the partner community?

FOR DIRECT BILL PARTNERS

• You'll need to transact $1million in a trailing 12 month period (up from the $300k annual spend of FY25)
• You need a Solution Partner Designation
• You'll need to go through an automated assessment that looks at your sales capacity, your solution expertise, your operational excellence, your support, your compliance frameworks and your security protocols
• You'll need an active Advanced Support Plan with Microsoft (such as ASfP) 
• You need a partner security score of 80 or above 

FOR INDIRECT BILL PARTNERS

• You'll need to transact $1000 in a trailing 12 month period
• You need a partner security score of 80 or above 

WILL THIS IMPACT INDIRECT PROVIDERS?

Yes- absolutely. As of October 2025, indirect providers will be required to have a minimum of $30million TTM billed CSP revenue per authorised region. This will certainly lead to some consolidation within the distribution channel, and will be potentially disruptive to mid-market distributors. Any existing distribution contracts will also be asked to meet the $30million trailing 12 month revenue target, even if distribution is not the sole business function, causing some indirect providers to forfeit their place on the program in favour of becoming a Direct Bill partner. 

Why is this change coming?  

Microsoft announced at Ignite 2024 that there is a total addressable market opportunity of $661 billion within small and medium Enterprise customers globally. Microsoft are motivated to ensure that they have skilled and compliant partners to capitalise on this opportunity.

As such, they are measuring CSP partners on their ability to execute well against six key metrics: 

1. Secure sufficient total addressable market to support health and thriving partners. 
2. Demonstrate proven sales capacity and solution area capability 
3. Deliver operational integrity, consistency and reliability  
4. Provide first-level support for customers and resellers 
5. Lead with compliance practices to mitigate risks 
6. Maintain security postures that build, maintain and reinforce customer trust 

The way that each partner will be assessed against these criteria varies per partner type, as shown below. FY26 requirements will be enforced for all new partners registering to become CSP partners from October 1st 2025, or for existing partners, on the anniversary month of their CSP registration after October 1st 2025. 

Direct Bill Partner Requirements

I'm not signed up as a Direct Bill partner yet, but I'd like to be. What happens if I don't meet the criteria above? 

If you do not meet the eligibility criteria, you are not eligible to onboarded as an authorised CSP partner and will be eligible to reapply 12 months after application denial.  

If a partner does not meet all criteria prior to the annual reassessment date, you have the option to transition to an indirect reseller authorisation. Associated customers remain until eligibility is decided.  

If a partner does not meet all criteria upon reassessment, CSP authorisation is lost, and offboarding and deauthorisation protocols come into effect. All customers will receive notification that the partner has lost CSP status, and will be given instruction on how to find a new reseller.   

Indirect Reseller Requirements

Starting October 1st 2025, new indirect resellers must meet the criteria above. If a direct bill partner decides to undergo Indirect Reseller Authorisation and does not meet the criteria, then they are not eligible to be onboarded as a CSP partner and will be eligible to reapply after 12 months.   

Existing partners will be assessed against the criteria above from 1st October 2025. If an existing indirect provider does not meet the requirements, they will be deauthorised as a CSP partner and offboarded. Partners are eligible to reapply after 12 months.  

Want to talk through these changes and what they might mean for you?

We know that the above is a lot to take in, and we have already had a lot of questions around the Partner Center Security score. If you have any questions, please feel free to book time with Annie, and she can run through what these changes will mean for you, as well as give some pointers to make changes early.