Microsoft Partner Incentives. Cloud Solution Provider (CSP) Indirect Reseller Incentive Guide
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1 Microsoft Partner Incentives Cloud Solution Provider (CSP) Indirect Reseller Incentive Guide July 1, 2016 June 30, 2017
2 Contents Indirect Reseller Overview... 3 Executive summary... 3 Incentives summary... 3 Partner eligibility... 4 MPN requirements... 4 Microsoft Partner Network (MPN) agreement... 4 Managed Partner List... 4 Eligibility monitoring and management... 4 Loss of eligibility... 5 Enrollment... 5 Invitation period... 5 Onboarding process... 6 Partner Incentives Experience account set-up... 6 Program structure & rates... 6 Global incentives... 6 Local accelerators... 6 Earnings & calculation... 7 Eligible revenue rules... 7 Payment... 7 Payment cadence... 8 Payments details... 8 Payment earnings reporting... 8 Dispute and resolution... 8 Overpayment... 9 Support & resources... 9 Support channels... 9 Partner resources Useful links
3 Indirect Reseller Overview 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 Reseller (formerly known as CSP 2-Tier Reseller) incentive program rewards Reseller partners, who purchase from a CSP Indirect Provider, for driving the activation and enablement of customers with Microsoft based online services. This guide summarizes the requirements to participate in Microsoft CSP Indirect Reseller incentive. It replaces and supersedes all prior Microsoft CSP Incentive guides for Indirect Resellers and any related communications. This guide is not applicable for the People s Republic of China. Incentives summary CSP Indirect Resellers are eligible for an incentive of 8% of monthly billed revenue from sales of online services such as Microsoft Office 365, EMS, Windows Intune, CRM Online and Azure. All links referenced throughout the guide will be available in the Support and Partner Resources sections. 3
4 Partner Status & Performance MPN Enrollment Partner eligibility To be eligible to participate in the CSP Indirect Reseller incentive, a partner must meet the following criteria: Eligibility Type Eligibility Requirement Examples of Program Specific Criteria Enrollment Status Active MPN Membership Microsoft Management Status Managed Partner (on FY17 Managed Partner List) Figure 1: Eligibility requirements overview MPN requirements Eligible partner organizations must hold an active MPN membership. Microsoft Partner Network (MPN) agreement Partners must hold an active MPN Agreement. The Master Channel Incentive Agreement (MCIA) is now presented as part of the FY17 MPN Agreement as Exhibit B. Managed Partner List Partners must be included on Microsoft s FY17 Managed Partner List (MPL). Eligibility monitoring and management Partner eligibility requirements for this Microsoft CSP Indirect Reseller incentive must be met in addition to the Indirect Reseller having transacted 1 CSP revenue 1 TTM billed revenue from sales of online services. 4
5 before partners are invited to the incentive platform. Partners must meet these criteria and onboard to the Partner Incentive Experience platform (PIEX) 2 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. Loss of eligibility Partners must be eligible in order to be onboarded onto the Partner Incentives Experience platform. 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 at all times during the program period. Reconsideration for resolution of Loss of Incentive Eligibility 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 H1 earnings period has ended will only be considered for the H2 earning period. Enrollment Invitation period Partners who meet all eligibility requirements and transacted CSP revenue will be invited to the Partner Incentives Experience platform at the beginning of the Microsoft fiscal year and then monthly for new Partners. Eligible 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 in MPN. Each partner must be successfully enrolled in Partner Incentives Experience prior to the end of the program period in order to receive incentive payments. 2 Web-based Microsoft tool used for viewing of incentive earnings and activity. 5
6 Onboarding process Partners must meet all eligibility criteria and complete the enrollment process by program (even if active in PIEX 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 Reseller incentive by means of an with a company domain (for 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 PIEX, but must continue to meet eligibility requirements in order 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 & rates This incentive includes global and local components. Global incentives Incentive Promotional Rate 8% of monthly billed revenue 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. 6
7 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. See the following option: Cloud Revenue 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. Earnings & calculation Eligible revenue rules Eligible revenue is determined by Microsoft s internal sales tools as invoiced sales to the Indirect Provider of qualifying products during the earning period. The following restrictions apply: Revenue from subscriptions of Exchange Lite and other adjustments such as Internal Use Rights or Trial seats is 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. These incentives are not offered in the People s Republic of China. Payment Partners can only receive payments after completing enrollment to the Partner Incentives Experience platform and continuing to meet incentive eligibility requirements at time of payment calculation. 7
8 Payment cadence Payment will be disbursed to the partner along the following schedule: Incentive Type How Often Expected payment within Rebate 2 payments per program year 45 days after the end of the earning period (Earning period 1: July 2016 December 2016; Earning period 2: January 2017 June 2017) Payment will be in the form of wire transfer Minimum payment threshold If the incentive earnings are below the minimum threshold of $200 USD, those earnings will be carried over to 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 Incentives Experience Guide at aka.ms/partnerincentives. Payment earnings reporting Partners can view their earnings and payment activities via the Partner Incentives Experience platform. Data is updated on a daily basis. Click here to view payment information on the Partner Incentives Experience platform for Indirect Resellers. Click here to view earnings information on the Partner Incentives Experience platform for Indirect Resellers. Dispute and resolution If partners find a discrepancy with their incentive payouts, they can follow the below: 8 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.
9 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 Microsoft Channel Incentive Agreement (MCIA). Microsoft will generally attempt to recover overpayment by offsetting against future incentive payments earned. If for any reason such approach cannot be executed (e.g. partner is no longer participating in an incentive), Microsoft reserves the right to invoice partner for the overpaid amount directly. Support & 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 & Africa (EMEA): ociemea@microsoft.com 9
10 Partner resources All of the resources below are available through the Microsoft Partner Network. Program Assets Description Incentive Guide Guide containing CSP Indirect Reseller incentive overview, including product rate and eligibility guidelines Partner Incentives Experience Guide Guide providing instructions on how partners can view incentive earnings, make claims and submit proof, do payment reconciliations and manage users, all from one single secure Partner Incentives Experience portal. Useful links Microsoft Partner Network: o Program membership, products, licensing, training & event information Partner Incentives MPN Portal: aka.ms/partnerincentives o Includes all Partner-facing incentives materials Partner Incentives Experience: o A dashboard providing program information, notifications and support Partner Center: 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 program(s) 10
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