A Cloud Solution Provider (CSP) is a Microsoft authorized channel partner that resells Azure, Microsoft 365, Dynamics 365, and Power Platform under its own billing relationship. CSP effective rates typically land 3 to 8 percent above the equivalent Enterprise Agreement negotiated rate. Across mid market deals we benchmarked in 2024 and 2025, the median CSP M365 E3 rate ran 4.2 percent above the equivalent EA negotiated rate, with the gap widening on Azure consumption and narrowing on F1 and F3 frontline SKUs.
Definition
Cloud Solution Provider (CSP): Microsoft channel program for partners that resell Azure, Microsoft 365, Dynamics 365, and Power Platform with their own billing, support, and services wrapper. Replaced the legacy Open License program for new sales in 2022. Sits alongside Enterprise Agreement and Microsoft Customer Agreement (MCA) as one of three primary commercial purchase paths.
Two CSP variants exist. CSP New Commerce Experience (NCE), introduced in 2022, is the modern model with 1 month, 12 month, or 36 month subscription terms, mid term seat add only (no removal), and price uplift on monthly terms. CSP Legacy persists for some renewal cohorts and offers fully flexible seat counts at a higher per seat rate. New Microsoft sales default to NCE.
The partner economics matter for the buyer. Partners earn 6 to 22 percent margin on the SKU resale depending on competency tier and CSP incentive program. Some pass the margin back to the buyer as discount. Others retain it as services funding. The buyer's effective rate depends entirely on the partner's pricing posture. See the EA definition and the MCA definition for the alternative purchase paths.
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CSP versus EA versus MCA
From our 2024 and 2025 sample of mid market and enterprise Microsoft deals: CSP NCE M365 E3 12 month subscription ran 3.5 to 6.5 percent above the equivalent EA rate, with the median at 4.2 percent. CSP NCE Azure consumption ran 5 to 9 percent above the equivalent EA Azure rate. CSP Legacy ran 0.5 to 2 percent above CSP NCE on M365 SKUs but offered seat removal flexibility. MCA Enterprise direct delivered the lowest median rate but required Microsoft direct relationship, which not every mid market buyer wants. Methodology: NDA invoice data, deal size brackets 50 seats to 5000 seats, segment cuts US, EMEA, APAC.
For the surrounding vocabulary, see the EA definition, the MCA definition, the MACC definition, the true up definition, and the glossary hub. For Microsoft benchmarks, see the Microsoft pricing profile.
Frequently asked questions
What is a Cloud Solution Provider (CSP)?
CSP is Microsoft's channel program where authorized partners resell Azure, Microsoft 365, Dynamics 365, and Power Platform with their own billing relationship, support layer, and value added services. Buyers transact with the partner, not Microsoft directly.
How does CSP pricing compare to an Enterprise Agreement?
CSP effective rates typically land 3 to 8 percent above the equivalent EA effective rate for the same SKU and seat count. Across mid market deals benchmarked in 2024 and 2025, the median CSP M365 E3 rate ran 4.2 percent above the equivalent EA negotiated rate. CSP wins on flexibility and partner service value, not raw unit price.
Who should buy through CSP?
CSP fits organizations below the EA seat threshold (500 in commercial, 250 in government), organizations needing monthly billing flexibility, and organizations that depend on the partner for managed services, migrations, or licensing optimization.
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