Take Control of Your Microsoft CSP Transfers

Introduction

Transferring new commerce license-based subscriptions from one transacting CSP partner to another can streamline customer relationships and ensure seamless service transitions. This process has been under development and is now available in the Partner Center.

This guide outlines the key terms and considerations for transferring subscriptions, providing a comprehensive understanding of the process.

Impacted Audience:  Indirect Providers, Microsoft CSP Partners, Indirect Resellers, Direct Partners, and Customers of CSP Partners

Subscription Transfer and Billing

When transferring a new commerce license subscription mid-term, billing is divided between the original provider (source partner) and the new provider (target partner).

• Source Partner: Responsible for payments up to the transfer date.
• Target Partner: Assumes financial responsibility for the remaining subscription term and will receive all future invoices.

NOTE: 

1. the source partner will stop receiving invoices upon transfer for monthly billed subscriptions.
2. If the source partner prepaid for an annual subscription, they receive a prorated refund for the remaining term post-transfer. For monthly billed subscriptions, the current partner ceases to receive invoices upon transfer.

Pratical Example:

A Microsoft 365 Business Premium subscription purchased on July 12, 2024, is transferred on October 20, 2024. The source partner pays from July 12, 2024 to October 20, 2024 and the target partner covers from October 21, 2024, to July 11, 2025.

When to Use This Feature

The new commerce license-based transfer capability is an opt-in feature enabling two transacting partners to transfer NCE seat-based subscriptions. 

This feature supports transfers between:

• Direct bill tenants
• Indirect provider tenants
• Indirect provider and direct bill tenants

Partners can choose whether to use this capability, accessible via Partner Center UX and API for self-service and various business scenarios. 

IMPORTANT: If a partner prefers not to accept the current partner's subscriptions midterm, they can wait until renewal or purchase a new subscription, with the customer potentially responsible for both subscriptions.

Eligibility and Authorized Roles

Self-Serve Capability:

This functionality allows partners to manage subscription transfers on their own, without needing direct assistance.

Who Can Use It:

• Direct Resellers: These partners purchase cloud services directly from Microsoft and then resell them to their customers. They can also use the self-serve capability for subscription transfers.
• Indirect Providers: These are distributors who resell Microsoft cloud services to end customers through indirect resellers. They can use the self-serve capability for subscription transfers.

Exception for Indirect Resellers:

• Indirect Resellers: These are partners who purchase cloud services from indirect providers and then resell them to end customers. They cannot directly use the self-serve capability.

How Indirect Resellers Can Transfer Subscriptions?

They must request the transfer through their indirect provider. The indirect provider can then likely utilize the self-serve capability to complete the transfer.

Supported Scenarios and Transfer Types

Transfers enable partners to move customer subscriptions under various scenarios:

Subscription Transfer Limitations:

• Indirect Resellers: They cannot initiate transfers directly and need their indirect provider's involvement.
• Admin Role Required: Only Admin agents have the authority to create and approve transfer requests.
• Supported Subscriptions: This functionality applies to Azure plans (subscriptions, reservations, and savings plans) and new commerce license-based subscriptions.
• Unsupported Subscriptions: Software subscriptions, perpetual software licenses, and third-party subscriptions cannot be transferred through this method.

Notifications and Timelines

Notifications:

• Creation: Source partners and customers are notified by email when a transfer request is initiated.
• Completion: Upon successful transfer completion, all parties involved (source partner, target partner, and customer) receive email notifications.

Audit Log:

• Target Partners: The creation of a transfer request creates a record in the target partner's audit log.
• Source Partners: Accepting a transfer request creates a record in the source partner's audit log.

Processing Time:

• Typical: Most transfers complete within an hour.
• Maximum: Transfers can take up to 72 hours depending on the volume and type of subscriptions being transferred.

Cancellation:

• Pending Transfers: Target partners can cancel transfer requests in the "Pending" state. This prevents the source partner from accepting the transfer.

Conclusion

Transferring new commerce license-based subscriptions involves several critical steps and close coordination between partners and customers.

Understanding the process, financial implications, and ensuring clear communication will facilitate a smooth transition. Stay tuned for the official announcement in Partner Center for when this feature becomes available.

Source: 

1. Transfer new commerce license-based subscriptions (https://learn.microsoft.com/en-us/partner-center/transfer-new-commerce-license-based-subscriptions)
2. Transfer Azure subscriptions (https://learn.microsoft.com/en-us/partner-center/switch-azure-subscriptions-to-a-different-partner)
3. Create a transfer request (https://learn.microsoft.com/en-us/rest/api/partner-center/manage-orders/create-a-transfer)
4. Update a transfer request (https://learn.microsoft.com/en-us/partner-center/developer/accept-a-transfer)