Questions Regarding New CSP Authorization Enforcement Policies

Question

I have the following questions about the scenario in which a direct bill partner does not meet the new requirements at the CSP tenant anniversary date:

Restricted Status vs. Suspension/Revocation:
Until recently, official documents indicated that at T+0, a direct bill partner would move to "Restricted" status, allowing them to continue billing and renewing existing customers, but not create new customers or subscriptions, for an indefinite period. This also allowed a reasonable timeframe for transition to indirect CSP.
Now, the new enforcement policies state that at T+30, the tenant is placed in "Suspended" status, and at T+60, it is "Revoked," with no further possibility to operate on active customers and their subscriptions—even in cases where subscriptions have already been paid for annual or annual/monthly contracts.
Could you clarify the reason for this change and the rationale behind the new, stricter enforcement timeline?
Customer Transition Feasibility:
How does Microsoft expect all customers to be transferred to an indirect provider within just 30–60 days after T+0?
Is there any support or guidance for partners to manage such a rapid transition? Because in my opinion is not feasible and could be a potential risk to loose customers business.
Prepaid Subscriptions:
Even if it were possible to transfer all customers within the required timeframe, has Microsoft considered that many of these subscriptions have already been prepaid for an entire year or are in the middle of an annuality with monthly payments by the direct bill partner to Microsoft?

We appreciate your attention to these concerns and look forward to your guidance on how to best manage compliance and customer impact under the new policies. My personal opinion is that is immediately necessary to restore the process as before with the Restricted Status if Direct Bill are not satisfied and give time (one year) to the partner to move to indirect provider all the customers/subscriptions.

Thank you in advance for your support.

jenrheault · Answer

Hello Fvalieri,
Thank you for your feedback.
1) I am providing a link to&nbsp;documentation to help clarify the eligibility timelines and states. &nbsp;Please note that this link will require a user ID and password to the partner.microsoft.com site.
2) I am providing some information below that I grabbed from the following&nbsp;FAQ on resources available to help direct bill partners transition.&nbsp; I am also including a link to the find a distributor page.&nbsp;
Details regarding the transition from direct bill to indirect reseller can be found here. Partners can also leverage the Technical Presales and Deployment (TPD) services benefit for a one-on-one consult. Partners van view step by step instructions for requesting a consult, at https://aka.ms/technicalservices .
3) Prepaid subscriptions: Prepaid subscriptions can be transferred mid-term.&nbsp; This article walks you through the process.&nbsp; There is a section titled “Invoices and Billing” that discusses how pre-paid subscriptions are handled.

jillarmourmicrosoft · Answer

JenRheault​ can you help here? Thank you kindly! - jill

jillarmourmicrosoft · Answer

Thank you JenRheault​!🤩

fvalieri · Answer

Tks Jen for your reply.Regarding point 3, I understand that the transfer is technically possible for annual contracts. However, the customer may refuse it, especially if they have purchased a 1-year contract and are fully aware of the subscription end dates.Additionally, as the direct partner, we may also decline the transfer. We would prefer to avoid entering a process where we would have to pay a distributor for services from the date of the transfer to end of the contract we've already paid for directly to Microsoft in advance.While we know that Microsoft will issue a credit note, this could still create to us a cash flow issue. In this specific case, we have already paid Microsoft for the annual contract, and the subscriptions should remain active until the end of the agreement. I think that the process for the direct bill deauthorization could be modified to allow annual contracts&nbsp; to go till the end so that it could be possible for the direct bill Partner (that move to indirect reseller) to move customers subscriptions smoothly on the indirect reseller (old direct bill) without any transfer.&nbsp;Tks for your attention.

jillarmourmicrosoft · Answer

fvalieri​ thank you for taking the time to share your feedback. We truly appreciate your engagement and thoughtful input.&nbsp;
While we understand your concerns, the current program policies and enforcement approach will remain in place as designed. We recognize that their are challenges for partners and we’re committed to supporting them with clear guidance and resources. Please don’t hesitate to reach out if you have additional questions or need further clarification.

Forum Discussion

Questions Regarding New CSP Authorization Enforcement Policies

5 Replies

Resources