Microsoft partners are navigating transformational shifts right now. As someone who engages partners across ANZ every day, I’m seeing first-hand the profound impact of the Microsoft CSP changes. As the new rules create waves across the ecosystem, many partners face business-critical decisions.
By Sarah Loiterton, General Manager Microsoft Cloud, Dicker Data
Let's start with a quick recap of what’s coming from October 2025:
Direct CSP partners now have $1M USD revenue thresholds (up from USD$300K), mandatory $25K+ support plan investments, and higher security and compliance requirements. Question: Do they make the necessary investments to stay Direct or explore the benefits of a distribution partnership?
Indirect CSP partners also face minimum thresholds along with higher security and verification standards that require them to be more capable and certified. Crucially, Distributors also face significantly raised minimum revenue thresholds that some will no longer meet.
As a result, some partners will need to quickly find a new distributor. Others are reassessing whether their existing partnership is still the right strategic fit under the new rules.
Where there's change, there's opportunity
Many partners I meet with are using this moment to step back and evaluate: Is my current approach – Direct or Indirect – simplifying CSP complexity and adding real value to my business?
The right distributor partnership amplifies what you do best, turning Microsoft's evolving requirements into competitive advantages. You can leverage their proven people, programs and connections to access capabilities that would take years to build independently. With operational complexity expertly handled, you can focus on looking after your customers and growing revenue.
The most effective distributor partnerships go beyond the lowest price to focus on growing your business. But how do you differentiate between strategic partners and transactional providers?
The right answer starts with the right questions
The key is to ask potential Distributors for detailed answers to targeted questions such as:
- What is your local track record? Do you have experts on the ground and ANZ partners that can vouch for their results?
- Can you eliminate our $25,000+ Microsoft support costs while enhancing our customer support experience?
- How well-connected is your local Microsoft team? Can you unlock relationships, funding levers and benefits you didn't know were available both locally and globally?
- What technical, operational and marketing programs do you offer to both reduce operational costs and build higher-margin services?
- Do you have an established Partner to Partner community to complement our capabilities and open growth and revenue opportunities?
- Do you offer direct services? If so, how do you handle situations where your services compete with ours?
Navigating Microsoft can be a dark art
Unlike many vendor relationships, being Direct with Microsoft doesn’t position you as the preferred partner when exploring referrals, specialist support or go-to-market investments to help grow your business. You are largely on your own.
Everyday licensing and operations are complex enough, let alone navigating Microsoft’s program requirements, training pathways, gaining access to eligible investment opportunities and ensuring your vision is aligned with Microsoft’s strategic priorities. Building this knowledge and nurturing long-term partnerships and relationships requires dedicated specialist resources that only a true ‘value add’ Distributor can provide.
Educational resources to help you choose once, choose right
To help you make an informed decision, we’ve prepared a range of practical tools:
- Microsoft CSP Program Changes: What you need to know
Get the full picture of what's changing and how it impacts Direct and Indirect partners.
- 10 questions to ask when choosing a Microsoft Cloud Distributor
Access our comprehensive framework and checklist to help you identify a genuine strategic partner invested in your success.
- Candid Conversation – Live event
Join two leading ANZ Microsoft partners on 7 August as they share real-world experiences and decision-making insights with industry experts (replay available).
Why Dicker Data for Indirect
As you evaluate Distributors, it’s worth understanding what sets Dicker Data apart. We’re ANZ’s leading Microsoft Distributor with a 45-year track record of helping partners thrive through change.
Microsoft specialists: We have the largest dedicated team of Microsoft resources on the ground here in ANZ. We don’t share focus with other clouds or vendors. We live and breathe Microsoft, so you don’t have to.
Our growth is your growth: While many Distributors are in the market competing on price, we're driven by creating value for your business in terms of revenue, margins and new capabilities.
We’ve been in your shoes: We hire experienced specialists who understand your challenges and how to unlock opportunities.
We don’t compete with you: Dicker Data’s model is different in that we don’t offer competing licensing or professional services to your customers. It’s not in our DNA.
Ready to dive deeper? Contact our team of local Microsoft experts, access all these resources and register for the live event at https://hubs.ly/Q03xc36c0
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About the Author: Sarah Loiterton is General Manager, Microsoft Cloud at Dicker Data, where she leads the Microsoft Cloud strategy across ANZ. Specialising in distribution channels, partner management and go-to-market strategy, Sarah is passionate about helping partners navigate market changes and capture new opportunities in the evolving Microsoft ecosystem. |
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