Azure
In the ever-evolving landscape of cloud solutions, businesses are constantly seeking ways to optimise their investments and ensure long-term stability. In recognition of this Microsoft has announced a significant shift in the Cloud Solution Provider (CSP) program with the introduction of a 3-year term option, which offers several compelling advantages over the traditional 12-month term. Here, we explore what to consider when opting for a 3-year or 1-year term.
One of the most significant benefits of committing to a 3-year term is the price predictability it offers. With a 3-year subscription, businesses can lock in their pricing for the entire duration of the term. This stability is particularly advantageous in a market where prices can increase due to various factors, including changes in exchange rates and market demand. However, organisations should be aware that under the 3-year term rules, they won’t be able to reduce their licenses during that period. Therefore, they need to be certain of future demand before committing to a 3-year term. Also, in February 2025, the UK market saw a price reduction of 5-6% on numerous Microsoft products. Customers can only realise the benefits of a price reduction upon the expiry of their existing subscription(s).
The 3-year term provides greater stability to the relationship with your CSP partner allowing both parties to better understand each other and leverage the benefits of a long-term partnership. With a longer commitment, partners have a more extended period to build relationships with their customers and introduce or deliver additional services and solutions. This should lead to increased customer satisfaction and loyalty.
In a competitive market, by offering a 3-year term Microsoft is levelling the playing field between EA and CSP. As customers are being encouraged to move from the traditional EA a major cause for concern is the lack of long-term (3-year) stability. It demonstrates a commitment to long-term partnerships and can be a differentiating factor when customers are choosing between licencing programmes. The assurance of a stable, long-term relationship should be a compelling benefit to managing the transition from EA to CSP.
Microsoft has introduced a promotional offer to encourage the adoption of the 3-year term. Currently, there is a 10% discount available for new-to-offer customers who commit to a 3-year term for Microsoft 365 E3 and E5 SKUs. These promotions can make the 3-year term even more cost-effective and attractive for businesses looking to maximise their investments.
Managing subscriptions can be a complex task, especially for large organisations with numerous licenses. A 3-year term simplifies this process by reducing the frequency of renewals. This not only saves time and administrative effort but also minimises the risk of service interruptions due to missed renewals.
The introduction of the 3-year term is a relatively new development in the CSP program. As experts in CSP, we at Trustmarque are well-equipped to guide you through this transition. Our team has extensive experience in managing CSP subscriptions and can help you navigate the complexities of the new term options. We understand the nuances of the CSP program and can provide tailored advice to ensure you make the most of your investment.
At Trustmarque, we pride ourselves on our deep expertise in CSP and our commitment to customer success. We offer a range of services to support your transition to a 3-year term, including:
By partnering with Trustmarque, you can leverage our expertise to navigate the new CSP landscape confidently and effectively.
The shift from a 12-month to a 3-year term in the CSP program represents a significant opportunity for businesses to enhance their financial planning, gain price stability, and leverage promotional offers. By committing to a longer term, organisations can enjoy a range of benefits that contribute to their overall growth and success. However, there are also factors such as leveraging price reductions, shrinking workforces and changing demands that mean it’s not always a straightforward choice.
For more information on the 3-year term and how best to assess the impact on your organisation, please contact your Trustmarque Account Manager or contact us at [email protected]
