FY18 CSP Indirect Provider Incentive Guide July 2017

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Microsoft Partner Incentives

Cloud Solution Provider (CSP)


Indirect Provider Incentive Guide
July 1, 2017 – June 30, 2018
Contents
Overview ..............................................................................................................................................4
Purpose............................................................................................................................................4
How to use this guide ................................................................................................................4
Executive summary......................................................................................................................4
Incentives summary ....................................................................................................................5
Partner eligibility...............................................................................................................................5
MPN requirements ......................................................................................................................5
Microsoft Partner Network (MPN) Agreement .................................................................6
Microsoft agreements and/or authorizations ...................................................................6
Cloud Distributor Solution Accelerator (CDSA) eligibility .............................................6
MPN requirements (CDSA) .......................................................................................................6
Eligibility monitoring and management ..............................................................................7
Loss of eligibility...........................................................................................................................7
Enrollment ...........................................................................................................................................8
Invitation period ...........................................................................................................................8
Onboarding process ...................................................................................................................8
Partner Incentives Experience account set-up ..................................................................8
Program structure and rates ........................................................................................................8
Global incentives ..........................................................................................................................9
Local accelerators ........................................................................................................................9
Co-op ............................................................................................................................................ 10
Earnings and calculation ............................................................................................................. 11
Eligible revenue rules .............................................................................................................. 11
CDSA eligible revenue............................................................................................................. 12
Payment ............................................................................................................................................ 12
Payment cadence ...................................................................................................................... 12
Payments details ....................................................................................................................... 13
Payment compliance ............................................................................................................... 13
Payment earnings reporting ................................................................................................. 13
Dispute and resolution ........................................................................................................... 14

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Overpayment .............................................................................................................................. 14
Support and Resources ............................................................................................................... 15
Support channels ...................................................................................................................... 15
Useful links .................................................................................................................................. 15
Partner resources........................................................................................................................... 16

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Overview
Purpose
This guide summarizes the requirements to participate in the Fiscal Year 2018
(FY18) Microsoft CSP Indirect Provider Incentive. It replaces and supersedes all
prior Microsoft CSP Indirect Provider Incentive Guides and any related
communications.

How to use this guide


This guide provides a step-by-step view on how to participate, earn and
maximize recognition of the partner’s efforts. This guide includes details on:
▪ Partner eligibility requirements
▪ Partner onboarding and enrollment
▪ Understanding the CSP Indirect Provider rebate, accelerator and co-op
incentives
▪ Support, escalation, and resolution process
All materials and information presented should be treated as Microsoft
Confidential Information and are subject to the terms of your NDA with Microsoft
through your Channel Partner Agreement or Microsoft Partner Network
Agreement in its current form. The information contained within this guide is
intended to be used for business planning purposes and may be subject to
change.

Executive summary
The Microsoft Cloud Solution Provider (CSP) program is a sales model that allows
partners to resell or bundle their own services in addition to Microsoft Cloud
Services as a complete solution, and gives customers the payment flexibility with
pay-as-you-go billing.
The Microsoft CSP Indirect Provider (formerly known as CSP 2-Tier Distributor)
Incentive program rewards Indirect Providers for driving the activation and
enablement of a resale channel and the sale of online services.
This guide is not applicable for the People’s Republic of China.

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Incentives summary
CSP Indirect Providers are eligible for an incentive of 10% of billed revenue from
sales of online services such as Microsoft Office 365, EMS, Windows Intune, CRM
Online, Dynamics Cloud offerings, and Azure. An amount equal to 50% of the
global incentive will be made available as a co-op.
All links referenced throughout the guide will be available in the Support and
Resources sections.

Partner eligibility
To be eligible to participate in the FY18 CSP Indirect Provider incentive, a partner
must have performed qualifying activities under the Microsoft Cloud Solution
Provider program. By participating in the CSP Indirect Provider incentive, the
partner affirms that it has agreed to all rules, terms, and policies contained within
the Microsoft Partner Network (“MPN”) Agreement which incorporates general
terms applicable to all partner incentives (which may be referred to as the
Microsoft Channel Incentive Agreement or “MCIA”), and the CSP Indirect Provider
Incentive Guide. The terms within these documents will apply to all incentive
payments paid to partner.
Partners who meet the below eligibility criteria are deemed eligible for the FY18
CSP Indirect Provider incentive, provided they remain in compliance with all rules,
terms, and policies contained within this document.

Eligibility type Eligibility requirement Examples of program specific criteria

MPN
Enrollment status Active MPN membership
enrollment

Partner Microsoft Cloud Distributor Agreement


Microsoft agreement and
status and (signed and active) and authorized as a CSP
authorization
performance Indirect Provider
Table 1: Eligibility requirements overview

MPN requirements
Eligible partner organizations must hold an active MPN membership.

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Microsoft Partner Network (MPN) Agreement
Partners must hold an active MPN Agreement, which incorporates terms
applicable to all incentives that were previously set forth in the Microsoft Channel
Incentive Agreement (MCIA).

Microsoft agreements and/or authorizations


Partners must hold a valid Cloud Distributor Agreement, including authorization
to sell Microsoft products applicable within this incentive as a CSP Indirect
Provider.

Cloud Distributor Solution Accelerator (CDSA) eligibility


To be eligible for the CDSA, the following criteria must be met by June 22, 2017,
for H1 and December 15, 2017, for H2. Eligible partners will start earning CDSA
incentives beginning July 1, 2017.
Eligibility type Eligibility requirement Program specific criteria

Membership Level Silver or Gold

MPN Competency See below (CDSA Eligibility)


Enrollment
Active Earned, Active Pre-Approved,
Competency Status
Active Non-Compliant, Active Inherited
Table 2: CDSA eligibility

MPN requirements (CDSA)


To qualify for the CDSA incentive in one or more of the defined workloads, your
organization must achieve and maintain the following:

O365 Up-sell Workload


▪ Cloud Productivity Competency – Distributor Option

EMS Workload
▪ Enterprise Mobility Management Competency – Distributor Option

Azure Workload
▪ Cloud Platform Competency – Distributor Option

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Dynamics 365 Workload
▪ Cloud Business Applications Competency – Distributor Option
FY18 CDSA eligibility assessment for the qualifying competencies will occur at the
V-org level. Thus, when Microsoft reviews each partner V-org, any location under
that V-org will inherit the competency held at the V-org level.

Eligibility monitoring and management


Partner eligibility requirements for this Microsoft CSP Indirect Provider incentive
must be met before partners are invited to the incentive platform. Partners must
meet these criteria and onboard to the Partner Incentives Experience platform
(PIExp)1 before Microsoft can approve and release incentive payments. If a
partner becomes eligible during the earning period, eligible revenue will be
included from the start of the earning period. The Payment section of this guide
includes a comprehensive set of conditions required for payment approval and
release.
Cloud Distributor Solution Accelerator (CDSA) incentive eligibility is competency
based regardless of partner country classification (Mature or Emerging) for
eligible workloads and SKUs. Partners must attain and hold a Silver or Gold level
competency in each defined workload.

Loss of eligibility
Microsoft will check incentive eligibility 30 calendar days prior to the end of the
earnings period and will notify partners if they have lost eligibility. This is the only
notification partners will receive. Partners must ensure they are eligible
throughout the program period.
At the end of the earnings period, partners who have not become compliant will
forfeit their incentive earnings for the whole semester. Partners meeting eligibility
requirements after the FY18 H1 earnings period has ended will only be
considered for the FY18 H2 earning period.

1
Web based Microsoft tool used for viewing of incentive earnings and activity.

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Enrollment
Invitation period
New partners will receive an invitation to log into the Partner Incentives
Experience platform. Invitations are non-transferrable and the Partner
Administrator is defined as the primary contact provided on Partner Center
during the CSP program onboarding process. New partners must be successfully
enrolled in Partner Incentives Experience by December 31, 2017, for FY18 H1
earning period and by June 30, 2018, for FY18 H2 earning period or their
incentive payments will be forfeited.

Onboarding process
Partners must meet all eligibility criteria and complete the enrollment process by
program (even if active in PIExp for another incentive) to become active in the
Partner Incentives Experience platform. This is a critical step for partners to gain
visibility to incentive calculation and receive payment information.
Microsoft will invite partners per eligible MPN HQ or Location ID to participate in
the CSP Indirect Provider incentive by means of an email with a company domain
(for example, @microsoft.com). Onboarding must be completed for each
invitation.
Partners who onboarded onto the Partner Incentives Experience platform in a
previous fiscal year do not need to re-onboard onto PIExp but must continue to
meet eligibility requirements to earn and be paid incentives for the current fiscal
year.

Partner Incentives Experience account set-up


Visit aka.ms/partnerincentives to review the Partner Incentives Experience Guide
for details on entering information such as bank and tax details and MPN ID
partners are transacting under.

Program structure and rates


This incentive includes global, local, and co-op components.

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Global incentives
Incentive Rate
4% of billed revenue with a 50/50 split
Core
between rebate and co-op
6% of billed revenue with a 50/50 split
Accelerator
between rebate and co-op
6%-10% of billed revenue with a 50/50
Cloud Distributor Solution Accelerator (CDSA)
split between rebate and co-op
Table 4: Global incentives

Local accelerators
In addition to the global incentive outlined above, Microsoft subsidiaries have the
option to offer additional local accelerators. These local accelerators may
augment levers within the global incentive or may reward partner engagement
toward the specific local market need. Not all local accelerators are available in
each subsidiary. Participation in a local accelerator is subject to the terms and
conditions set forth by the local subsidiary and provided to partners.
Local accelerator terms will be sent to partners by the Regional Operations
Centers (ROCs) in each subsidiary for accelerators available in that subsidiary.
Incentives from local accelerators will be paid as 100% rebate (no co-op). See the
following local accelerator option:

Cloud Revenue Accelerator


This accelerator rewards partners with an incremental incentive of billed revenue
from sales of eligible online services. This accelerator is paid in addition to the
incentive earnings for qualified sales and will be paid out as rebate.

Product Specific Accelerators


These accelerators reward partners with an incremental incentive based on billed
revenue from sales of specific products. The applicable products included will be
communicated from Microsoft Operations at the beginning of the program
period, and can include the following:

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Accelerators

SPE E5+SPE E3

O365 E5+O365 E3+Biz Premium

Azure

EMS E5+EMS E3+Power BI

Dynamics CRMOL + Dynamics ERP

Windows E5+Windows E3
Table 5: Product specific accelerators

Co-op
Partners participating in the CSP Indirect Provider incentive will earn 50% of the
global incentive as co-op. This allows partners to perform specific marketing,
demand generation, and readiness activities in accordance with the Partner
Incentives Co-op Guidebook.
The global incentives are split between rebate and co-op as follows:
Incentive Rebate Co-op
Core 50% 50%
Accelerator 50% 50%
CDSA 50% 50%
Table 6: Rebate and Co-op split

Co-op funds must be claimed during the usage period that follows the earnings
period. Co-op funds not used during the usage period will be forfeited after the
end of the period.

Earning and usage periods


The incentive funds for Indirect Providers are earned and paid out as follows:
FY17 Earning Period 2 FY18 Earning Period 1 FY18 Earning Period 2 FY19 Earning Period 1
Jan | Feb | Mar | Apr | May | Jun Jul | Aug | Sep | Oct | Nov | Dec Jan | Feb | Mar | Apr | May | Jun Jul | Aug | Sep | Oct | Nov | Dec

Earning Earn 2 (FY17) Earn 1 (FY18)


Usage Usage 2 (FY17) Usage 1 (FY18)
Claiming (+45 after Usage
Claiming 2 (FY17) Claiming 1 (FY18)
Period)
Table 7: Earning, usage, and claim schedule

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“Earning Period” is the 6 months during which partners earn rebates and co-op.
“Usage Period” refers to the 6 months that immediately follow the Earning
Period. Partners perform co-op activities and submit claims during the Usage
Period. There is a 45-day grace period after the end of the Usage Period for
partners to complete their claim submissions. If funds are not claimed by the
conclusion of the grace period, they will be forfeited and retired with no
possibility of reinstatement.
The Co-op Guidebook on the Partner Incentives MPN Portal is the primary source
to provide the mechanics, requirements and executional logistics for all eligible
co-op activities.

Earnings and calculation


Eligible revenue rules
Eligible revenue is determined by Microsoft’s internal sales tools as invoiced sales
of qualifying products during the earning period.
CSP Indirect Providers must provide a valid HQ or Location MPN ID of the
Indirect Reseller to whom they have sold Microsoft online services to ensure that
revenue will qualify for this incentive. The reseller ID cannot be controlled or part
of the Indirect Provider’s internal organization.
The following restrictions apply:
▪ Revenue from subscriptions of Exchange Lite and other adjustments such
as Internal Use Rights or trial seats are excluded.
▪ Not all Microsoft online services are available in all markets. New services
and offers may be rolled out in new markets and current services and
offers may be discontinued. As these service changes occur, customer
consumption of Microsoft online services will also change, resulting in
different incentive earnings for partners.
▪ Microsoft online services purchased by the partner and partner affiliate, or
services belonging to Microsoft or Microsoft’s affiliates, are not eligible for
the CSP Incentive.
▪ These incentives are not offered in the People’s Republic of China.

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CDSA eligible revenue
Workload definitions, minimum requirements and eligible SKUs to earn incentives
for each workload are described below.
Scenario Competency Eligible SKUs Rate
▪ O365 Business Premium
▪ O365 E3
Cloud Productivity ▪ O365 E5
O365 Upsell 6% of billed
Competency – ▪ O365 E5 w/o PSTN
Solution revenue
Distributor Option Conferencing
▪ SPE E3
▪ SPE E5
Enterprise Mobility ▪ EMS E3
Enterprise Mobility
Management ▪ EMS E5 6% of billed
and Security
Competency – ▪ SPE E3 revenue
Solution
Distributor Option ▪ SPE E5
Cloud Platform
Azure Consumption 10% of billed
Competency – Azure Consumption
Solution revenue
Distributor Option
Cloud Business
Dynamics 365 Applications 6% of billed
Dynamics 365 (All SKUs)
Solution Competency – revenue
Distributor Option
Table 8: CDSA eligible competencies, SKUs, and rates

Payment
Partners can only receive payments after completing enrollment to the Partner
Incentives Experience platform and continuing to meet incentive eligibility
requirements at the time of payment calculation.

Payment cadence
Payment will be disbursed to the partner using the following schedule:

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Type How often Expect payment within
▪ 45 days after the end of the earning
period (Earning period 1: July 2017 –
2 payments per December 2017; Earning period 2:
Rebate
program year January 2018 – June 2018)
▪ Payment will be in the form of a credit
memo or wire transfer

▪ By the end of the month for claims


Co-op Monthly
approved by 15th of that month
Table 9: Payment cadence

Minimum payment threshold


▪ If the incentive earnings are below the minimum threshold of $200 USD,
those earnings will be carried over to FY18 H2 and the partner will not
receive payment.
▪ Incentive earnings under $200 USD at the end of the program period will
be forfeited.

Payments details
For a detailed summary of payment details visit the Partner Incentive Experience
Guide at aka.ms/partnerincentives.

Payment compliance
Payment compliance means that 100% of all Microsoft invoices billed to the
partner must be paid by the due date during each month of the earnings period.
If this obligation is not met, the partner will not receive payments for incentives
earned for the month(s) of non-compliance.
To dispute compliance penalties, partners must log a billing dispute in Partner
Center. Working with an account manager or other will not suffice. When billing
disputes arise, please log a service request in Partner Center by selecting the
“Create a Service Request” option. Additional information regarding billing
disputes can be found in the CSP Billing and Invoicing guide on Partner Center.

Payment earnings reporting


Partners can view their earnings, co-op information, and payment activities via
the Partner Incentives Experience platform. Data is updated daily.
Click here to view payment information on the Partner Incentives Experience
platform for CSP Indirect Providers.

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Click here to view earnings information on the Partner Incentives Experience
platform for CSP Indirect Providers.

Dispute and resolution


If partners find a discrepancy with their incentive payouts, they can follow the
below steps:
▪ Earning disputes can be disputed for up to 30 days after the earning
period ends.
▪ Payment disputes can be disputed for up to 30 days after payment date.
All disputes must be submitted in writing to Microsoft within the above time
frames to the respective alias in the Support and Resource section below.

Overpayment
In the event of an overpayment, Microsoft will proceed with the recovery of an
overpayment in accordance with the MPN Agreement.
Microsoft will generally attempt to recover overpayment by offsetting against
future incentive payments earned. If for any reason such approach cannot be
executed for example, the partner is no longer participating in an incentive),
Microsoft reserves the right to invoice partner for the overpaid amount directly.

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Support and Resources
Useful resources for all incentives can be found on the Microsoft Partner Network
at aka.ms/partnerincentives (partner authentication required).

Support channels
Support for the partner incentive program is available in the support hub of the
Partner Incentives Experience by clicking “Support” in the header. The support hub
provides a centralized location for all channel incentives and Partner Incentives
Experience queries.
Additional incentive program support is available by contacting the appropriate
alias below for your region:
▪ North America: ocina@microsoft.com
▪ Latin America: ocilatam@microsoft.com
▪ Asia Pacific including Greater China: ociapgc@microsoft.com
▪ Japan: ocijp@microsoft.com
▪ Europe Middle East, and Africa (EMEA): ociemea@microsoft.com

Useful links
▪ Microsoft Partner Network: https://mspartner.microsoft.com
o Program membership, products, licensing, training, and event
information
▪ Partner Incentives MPN Portal: aka.ms/partnerincentives
o Includes all partner-facing incentives materials
▪ Partner Incentives Experience: https://partnerincentives.microsoft.com
o A dashboard providing program information, notifications, and
support
▪ Partner Center: https://partnercenter.microsoft.com/partner/home
o Support, Partner Community and Partner Services Site
▪ Partner Incentives Experience guide: aka.ms/partnerincentives
o This guide summarizes requirements for participating in Microsoft
CSP incentive programs
▪ CSP Billing and Invoicing guide: http://assets.microsoft.com/billing-and-
invoicing-presentation.pptx
o Guide providing information on billing and invoicing for CSP

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Partner resources
All the resources below are available through the Microsoft Partner Network.
Program assets Description
Guide containing CSP Indirect Provider incentive overview,
Incentive Guide
including product rate, and eligibility guidelines
Guide providing instructions on how partners can view
Partner Incentives incentive earnings, make claims and submit proof, do
Experience Guide payment reconciliations and manage users, all from one
single secure Partner Incentives Experience portal.
Guide providing partner incentive details regarding eligible
Co-op Guidebook
co-op activities and requirements for claim
Table 10: Program assets

Templates Description
Template to submit proof of execution requirement for co-
CSR Template op claims. To be used in place of, or in addition to, an
invoice for specific co-op execution
On Site Champ Reporting Template to facilitate reporting/proof of execution for On
Template Site Champ activity
Table 11: Templates

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