Direct or Indirect – What to pick for your business

direct or indirect reseller - CloudCockpit

We often hear about the struggles some of our customers went through when settling on a CSP partnership module. The on-going debate of whether to become a Direct (Tier 1) or Indirect (Tier 2) is not an easy decision to make, and there is no wrong or right answer. It all comes down to your business needs and wants. You can read more on our recent article about Microsoft CSP Program.

So how can you decide? Here are some questions that can help you decide which course to take.

Do you want Direct billing?

As a Direct CSP, you can choose to bill your customers directly via a payment system of your choice.

What is your Time to Market requirements?

Due to the additional prerequisites that must be met first, direct CSP takes longer to get off the ground. With indirect CSP, you can cut to the chase and get out on the market straight away. Furthermore, a direct module requires resources and infrastructure to be in place within some very specific requirements, such as for example having your own IP built around the Microsoft cloud. Verifying that you fill out these requirements take time, making the Go-To-Market time much longer in the direct business module.

What kind of support do you offer?

With a Direct module, you are required to offer technical support around the clock (24/7), while as an Indirect CSP you can partner up with a CSP Provider whom which you can divide the workload and can help you with your customers.

How would you want to manage your licenses?

As a Direct CSP you can manage your licenses directly through the Microsoft Partner Network, while as an Indirect CSP you are required to manage your licenses through the CSP Portal of your distributor.

Major choices are never easy to take, especially when it affects your whole business. But there are benefits to both sides, and it is something you can always decide to change later in the course of your business.

But regardless of what you choose, you will need a platform to help you with managing your business – and that’s where we come in. Reach out to us and find out how we can help your scale your CSP business.