Microsoft's Channel Strategy Shift Leaves Partners With Increased Risk

Microsoft's shift in channel strategy has left partners grappling with increased risk and responsibility. The vendor's Cloud Solution Provider (CSP) and New Commerce Experience (NCE) programs have expanded partner obligations over the years, putting resellers on the hook for customer non-payment, fraud, and insolvency events.

Resellers now carry greater exposure to financial risks, with some partners estimating losses in the tens of thousands of dollars. A Queensland Computers owner, Dr Geoff Augitis, expressed concern that Microsoft's licensing model pushes disproportionate risk onto MSPs while retaining control and profit for itself.

Augitis cited instances where customers paid twice for the same licenses due to a previous provider's refusal to relinquish control. Another MSP shared a story about being locked into paying tens of thousands of dollars for unused cloud licenses after a provisioning error, highlighting the lack of flexibility in Microsoft's licensing policies.