Q: What role do LSPs (licensing service providers) play in the marketplace transaction?
A: The LSP plays a role in managing billing, invoicing, tax collection, and other administrative functions for customers that buy from MSFT directly (and often have MACCs). LSPs generally mark-up the Azure invoice for their services. LSPs may be present in many markets.
At the marketplace transaction-level…
- For customer private offers: LSPs may be present in the deal flow (becausec they deliver and administrate the Azure invoice), but will not be party to the marketplace transaction…ie the partner will not name them in the private offer. If the partner chooses to offer margin to the LSP, that’s between the partner, customer, and the LSP.
- For the CSP offer…this is where the customer buys Azure from a partner participating in our CSP program and would by the partner's solution through the CSP as well. MSFT doesn’t sell directly to this customer, hence there is no MACC.
- For MPO (multiparty private offer), same rules apply as #1. There could be a scenario where the MPO selling partner (ie the reseller or disty) could also play an LSP role for the customer, but that’s not a pattern we’ve seen yet.
