CSP Hoster replaces SPLA. In the words of Lee Corso (College football commentator for those unaware): “Not so fast, my friend.”
I like to think of CSP-Hoster as an entity who hosts CSP Products. That’s deep. The CSP Hoster is indeed an organization that hosts CSP solutions, however, there are some things to consider. Let’s dive into the pros and cons of going the CSP Hoster route.
Pros
CSP Direct partners who are also hosters (essentially all QMTH hosters) the ability to control the entire end-end solution for their end customers. They procure (sell the CSP licenses through their CSP Direct authorization), they install using media/keys, they can help ensure compliance since end – customer licensing is becoming more and more complex, and finally they host the solution for the customer.
Increased incentives. In one example, a CSP Direct provider increased margin by 15% and increased rebates +4%. This is pretty common in the CSP Direct space. There’s no middle man like there is in the CSP Indirect program and the SPLA program (buy from a reseller who then buys it from Microsoft) with CSP Hoster you buy from Microsoft and sell to the end user.
More options especially with End of Security Updates (ESU). Eligible in CSP, it is an add on license to help extend the life line of a specific product. (Such as SQL 2012/Windows 2016, etc.)
Relaxed licensing rules. As an example, if a CSP Hoster wants to sell Windows Server through the CSP program there are no CALs required. Another cost savings for the end customer. If they use the flexible virtualization benefit, CALs are required.
Separates you from competition. Every entity (outside of Listed Provider) can be an authorized outsourcer who can leverage the Flexible Virtualization Benefit. But not every entity can be a CSP Hoster.
Cons
CSP Direct authorization. Microsoft wanted to roll this out to a small subset of customers first and that is the reason for the CSP Direct requirement. If you are not CSP Direct authorized, use the Flexible Virtualization Benefit. CSP Direct authorization is a massive undertaking, support, platform, and commitments. No thank you.
Microsoft has access. That’s right. Microsoft will know who your customers are, where they are from, and what they are buying. This is often overlooked. Especially in an audit.
Incentives are better than SPLA, but one thing consistent with Microsoft, incentives only go one direction. Down.
Summary
If you are not CSP Direct authorized, don’t worry about it. Use Flexible Virtualization and educate your customers on the different license options. That is the best way to differentiate yourself. If you are CSP Direct authorized, CSP Hoster is a good way to not only differentiate yourself but also look at different revenue streams. Take a look at my article, Azure Arc There’s just a lot of options you can take a look at.
SPLA Licensing 