Microsoft taking away a customer

[Mmk2118]

Hi, a client of mine was approached by Microsoft and is about to sign them up directly via an Enterprise Agreement. 
We have had this client for over 2 years and they have licenses with us through CSP.

Is that common? Microsoft simply signing up a partner’s customer? 

[#2]

@Mmk2118  Yup, we had this too.

I sent a polite but firm email to the Microsoft person telling them to back off. And to their credit, they did.  

[#3]

Hi @Mmk2118 

The only suggestion that I have is that you speak with your customer, since they'd have to agree to work with Microsoft .

If this (or someone else's) reply answers your question, please Accept as the solution to help the other members find it more quickly. Otherwise, please let me know if you need further assistance on this topic.

Regards,

Microsoft CSP Licensing Concierge

[#4]

Thanks LicensingConcierge but it seems that Microsoft is pressuring them into the switch.
Is that not against the Partner agreement?
Why would we, as Partners, bring customers if they're going to be taken away by Microsoft?
Thanks

[#5]

We have had this happen several times, where Microsoft has poached our largest CSP customers and an EA has been signed.

[#6]

Thanks Claudio. Sorry it happened to you. Is that not against the Partner agreement? Why would anyone continue working with Microsoft if this happens?

[#7]

I am not aware of any section in the Partner Agreement that would prohibit this.

The problem was that any customer could switch from CSP legacy licenses to an EA at any time.

With the CSP-NCE, customers are locked in for at least one year if they purchase licenses for the one year term.

[#8]

I see. It just seems unethical.
Thanks for your input.

[#9]

Microsoft Corp does not like this too, but Microsoft sales do not care....CSP is the preferred Microsoft customer program, but somehow Microsoft sales keep pushing EA above CSP.....we keep reporting this to Corp when this happens.....

[#10]

I, too, have been on calls with Microsoft where there was a strong subtext of trying to get the customer to move.

One of the big, obvious, issues in the channel is money and margins. There are indirect partners who would gleefully ditch their indirect provider for 0.001% additional margin so it shouldn't come as a surprise to anyone that a client might feel inclined to leave a partner over an EA deal saving them a few dollars. Under legacy CSP at least there was value in flexibility that wasn't there under EA, but now, not so much.

There are breakpoints everywhere in the Microsoft channel where you "outgrow" X and go to Y. Partners think they get too big for Indirect, so they go direct, partner clients get too big for CSP, so they go to EA, and so on and so forth.

It is rough because at the highest tier at MSFT, it is all just share shift and not net adds but that's not something a salesperson is going to consider as they count the dollars on their commission check.

While I'm obviously an Indirect/CSP fan, the decades of customer service & support in me just wants people to work in the model that fits them best. For a customer, sometimes that might mean an EA makes more sense.

[#11]

Hi @Mmk2118 

How to Report a Compliance Concern | Microsoft Legal

Hope this helps 

If this (or someone else's) reply answers your question, please Accept as the solution to help the other members find it more quickly. Otherwise, please let me know if you need further assistance on this topic.

Regards,

Microsoft CSP Licensing Concierge

[#12]

Thank you. Through which mechanism do you report it to Microsoft Corp?

[#13]

Hi @LicensingConcierge1,
Thank you. I filed a report as I think it's very unethical. Why would we partner with Microsoft if they just act like this? It seems that at the very least they should have contacted us and also made sure it was in the best interest of the client. They have not and it is not.

[#14 · Accepted solution]

Ok, so after reaching out to Microsoft partner support and calling the representative involved in signing up the customer, I was told that the intention is not to remove the reselling partner. On the Enterprise Agreement we will be listed as the reseller. I am not sure how get paid but I was told to make sure to be able to transact EAs. Thanks everyone.

[#15]

@Mmk2118 Fellowmind is part of PAC and Inner Circle. So we reach out to our network and report this kind of behavior.

Same as LSP’s acting as CSP partners towards end customers, also not allowed….