3 min read
The hidden cost of reactive Cloud Solution Provider
Most organisations don’t go looking for a reactive Cloud Solution Provider (CSP). Instead, they are in the market for smooth running, predictable costs and the reassurance that someone is keeping an eye on their estate. And for a while, everything seems fine.
But beneath the surface, something else is happening.
While your business evolves, your CSP relationship often doesn’t. The estate grows, decisions pile up, and gaps appear long before anyone notices.
Why a reactive CSP model works…until it doesn’t
A reactive CSP model will work fine if your organisation’s Microsoft estate remains stable, predictable, and unremarkable. The process is straightforward: provision what is needed, make the necessary adjustments, and move on.
However, this is not sustainable or realistic.
Most Microsoft environments rarely remain unchanged. As organisations grow and modernise, cloud service consumption grows and Microsoft suddenly transitions from being ‘just another supplier’ to becoming an integral part of your organisation’s infrastructure.
Nonetheless, many CSPs continue to operate as if it were 2019. This is when customers begin to compensate: tracking renewals independently, scrutinising license allocations, and justifying unexpected and unforeseen cost fluctuations.
This is not a result of negligence or failure, but simply because the approach failed to evolve alongside your needs.
However, what is notably absent is any form of proactive engagement. Too often, your CSP becomes involved only when the situation has already become urgent, expected to resolve problems they have only just been made aware of.
Over time, customers do not necessarily become angry. Rather, they grow weary. They are less surprised but increasingly frustrated with a persistent and unresolved situation.
At this point there is a recurring sense of, “How long has this situation been going on?”
In environments where CSP support is predominantly reactive, optimisation typically occurs only in response to an external trigger, such as contract renewals, budgetary reviews, or challenging meetings.
Spending doesn’t spike; it gradually drifts upwards, difficult to justify as no one recalls ever making the decision
Timing of Microsoft licensing changes
Changes to Microsoft licensing are inevitable, and customers recognise that these adjustments will continue to occur. What they find challenging, however, is being informed of the impact at the last minute and there is limited time to respond. In these situations, available options can appear hypothetical rather than actionable.
So, discussions become hurried, choices tend to err on the side of caution, and internal teams quietly assume additional responsibilities beyond their original remit.
This is not done out of preference, but because the need arises and someone must address it.
What’s actually missing
Most customers are unlikely to say that their Cloud Solution Provider is doing a bad job. Instead, they might say something along the lines of:
- “We handle most of that ourselves.”
- It’s fine, we just don’t really need much guidance.”
- “We only talk when something comes up.”
The missing element is not a lack of effort, but rather a lack of proactive intent.
There’s rarely a set time to review setups, nor anyone to suggest, “we can probably stop paying for this now”.
As a result, Microsoft expenditure often quietly recedes into the background – accepted and unchallenged.
Benefits of the proactive approach
When customers experience a more proactive approach from their CSP, it doesn’t come across as intrusive or overwhelming. Rather, it feels timely – offering earlier conversations, earlier warnings, and earlier opportunities to make informed decisions.
This is not about receiving constant advice or being pressured into change; it is about having someone who is intentionally attentive and engaged.
This is where practices such as FinOps and Software Asset Management (SAM) transition from being perceived as abstract frameworks to becoming standard operational methodologies.
We excel in this space, by identifying potential issues and opportunities sooner, always with the customer’s needs at the forefront.
For many organisations, it is at this point that the limitations of the previous model become clear. The old way of working is simply no longer sufficient.
The question that lingers
If your CSP is only visible when you raise a support ticket, that may be adequate for some. However, if optimisation efforts are initiated solely at your prompting, it is worth considering what opportunities might be overlooked in the interim.
The true cost of a reactive CSP does not appear on any invoice; instead, it is reflected in all the better decisions that are never quite realised.
As a Microsoft Cloud Solutions provider with a history of saving our customers money and reducing risk, our Microsoft CSP expertise can help you seize opportunities to optimise your cloud environment, enhance operational efficiency, and safeguard your digital assets. By adopting a proactive approach, we ensure that you receive guidance and support before issues arise – enabling your organisation to make informed decisions that drive business growth.
Take a look at our frequently asked questions below for CSP or reach out to us today, and start the conversation that could transform your organisation’s cloud journey.
Frequently asked questions
The Microsoft Cloud Solution Provider (CSP) is a modern-day licensing program.
This differs from traditional licensing programs that are transactional in nature. Instead, CSP is designed to allow Microsoft partners with deep technical and licensing expertise to integrate license fulfilment with end-to-end lifecycle managed services; from solutions implementation to support and billing.
As tiered discounts are removed from Enterprise Agreements and organisations need greater flexibility in aligning Microsoft subscriptions with their changing requirements (while controlling costs) CSP has adapted to suit both SMEs and enterprises.
As experts in Microsoft licensing, we would consider that the following FAQs on Microsoft CSP illustrates the most common areas of interest.
What is CSP?
Microsoft Cloud Solution Provider (CSP) program enables partners to directly manage their customer‘s Microsoft software lifecycle (including Azure, Microsoft 365, Dynamics 365 and an ever-increasing portfolio of perpetual and subscription software). Through CSP, partners directly provision, manage, support and invoice our customer subscriptions and associated services.
What’s different about CSP compared to my other Microsoft contracts?
A CSP is less complex, with a single evergreen, Microsoft Customer Agreement (MCA).
When does it make sense to consider CSP?
At any time, but there are also compelling events, such as upcoming renewal of a Microsoft agreement and business needs including cloud-adoption, specific technology projects and business process changes.
Can I obtain CSP with any Microsoft Partner?
You can have one or multiple CSPs at the same time. This is your choice.
There are two tiers of CSP:
- Indirect CSP Reseller (the majority of Microsoft Partners) who transact through a Distributor as a means of supplying subscriptions to customers.
- Direct CSP Provider (such as Version 1) who have invested in operational and accounting systems, technical expertise and accreditations, and the ability to deliver 1st line support services to fully support customers throughout the software lifecycle.
Is there a great deal of contractual paperwork involved in CSP?
No. An evergreen MCA underpins all products and services supplied through CSP.
How do I make sure that I’m always getting optimum value from my CSP?
Transparency is key. We have invested in systems and operations to ensure that you are kept fully informed of costs to enable you to retain control and make decisions based on your business needs.
Why should I consider Version 1 as my CSP partner?
We are one of c.100 worldwide Microsoft Partners to hold Azure Expert MSP status, underpinning the breadth and depth of our Microsoft expertise and experience we offer to Microsoft CSP customers.
- We are a profitable, risk-averse, customer-focused expert system integrator of 30 years standing
- We help you achieve your business objectives through the alignment of suitable technology – which is the foundation upon which the CSP program is built.
- We have invested in the processes to fulfil the supply of products and services effectively and efficiently
- We have a highly skilled, dedicated Software Asset Management practice to support customers with recommendations and best practice, good governance and compliance, and the portfolio of technology to help customers fulfil their requirements and objectives
What sort of benefits will I see with CSP?
By partnering with us through CSP, your organisation will benefit in the following ways;
- effective alignment of technology with business needs
- ensure cost transparency
- ability to quickly react to changing business needs
- realise measurable return on investment
When might CSP not be suitable?
A CSP may not be suitable if you do not use and have no plans to use Microsoft products. If you have an Enterprise Agreement that requires amendments, negotiated contract terms, then CSP might not be suitable.
Can I change CSP Partner if I’m not happy with my incumbent and how easy is this?
Yes. You can change CSP partner or have multiple CSP partners at any time. You always retain the right to select, invite and remove partner relationships by written request.
Is my information secure?
Maintaining and protecting the integrity of your information is our highest priority. As a Direct CSP, we have implemented all security measures mandated by Microsoft, including access auditing, Role-Based Access Controls, Privileged Identity Management and Multi-factor Authentication and practice ISO27001.