It’s Not Just the $1 Million: The Hidden Microsoft CSP Requirement That Could Cost You More

When Microsoft announced the upcoming Cloud Solution Provider (CSP) program changes, including the now-infamous $1 million USD annual revenue threshold, most of the industry fixated on the number.

And while that’s certainly a hurdle, the reality is:

Revenue is just the tip of the iceberg.

What’s not getting enough attention? The complex partner infrastructure Microsoft now expects from Direct CSPs — and the fact that many partners, particularly in Africa and emerging markets, simply aren’t set up to meet it.

The Real Challenge: Building a Scalable, Microsoft-Compliant Business Operation

To qualify as a Direct bill CSP from 1 October 2026, partners will need to show that they’re not just selling licenses, but running a true cloud business. Here’s what Microsoft will require (in addition to the $1M):

• A valid Microsoft Solutions Partner designation (one of six solution areas)
• Proven 24/7 customer support capabilities
• Fully integrated automated billing systems that connect with Microsoft APIs
• Demonstrated technical enablement and service delivery capabilities
• Verified implementation of Microsoft’s security and compliance standards (MFA, Secure App Model, Zero Trust, etc.)

These are the non-negotiables. And they’re non-trivial.

Why This Is Especially Complex in Our Region

Partners operating in or from Africa face an additional layer of difficulty:
Africa is not treated as a single CSP region.

• Countries like South Africa are grouped under the Middle East, Central Europe, and Eastern Europe (MECEE) CSP region.
• Other African countries fall under a separate “Africa” region.

So, if you’re serving clients across the continent — as many growing partners do — you’re forced to meet partner requirements in two different Microsoft CSP markets, with distinct revenue targets and designation paths.

The result? Even ambitious and fast-growing partners are left unable to comply, not due to a lack of sales, but because of the complexity and cost of infrastructure.

Many Direct CSPs Won’t Miss the Mark on Revenue — They’ll Miss It on Capability

Here’s the hard truth:

Many Direct CSPs won’t lose their status because they didn’t hit $1 million. They’ll lose it because they couldn’t meet Microsoft’s operational, support, and security demands.

This includes:

• Hiring certified engineers for round-the-clock support
• Building (or buying) automated billing engines
• Establishing compliant, auditable help desks
• Achieving Microsoft Solutions Partner status across workloads

It’s not a sales problem — it’s a business model problem.

The Smarter Play: Go Indirect, Go Far

That’s where we come in.

At 4Sight Channel Partner Cluster, we operate as a Microsoft Indirect Provider (aka Distributor). We’ve already invested in the infrastructure, compliance, and capabilities Microsoft is asking of Direct CSPs.

When you partner with us, you get:

• Certified Billing Infrastructure
  No need to build your Microsoft-integrated billing system — use ours. Scalable, multi-tenant, multi-currency.
• 24/7 Microsoft-Compliant Support
  We provide round-the-clock technical support, backed by certified cloud specialists.
• Solutions Partner Designation
  Our designation status enables you to benefit from our partner tier — no need to earn it independently on day one.
• Compliance and Security
  Our platform is compliant with MFA, Secure App Model, Zero Trust, and more — and we help you stay secure too. See our security offering.
• Regional Market Reach
  We understand the CSP fragmentation in Africa and MECEE, and we’re structured to help you serve cross-border clients without the complexity.

Explore our CSP Reseller Program

Final Thought: Now Is the Time to Pivot

The CSP changes are not just about bigger numbers — they’re about bigger responsibilities. For many regional partners, the decision is no longer “Can we hit $1M?”

It’s “Can we become a global-grade Microsoft provider from scratch — or do we join one?”

With 4Sight, you don’t have to build it alone. You can scale immediately, without reinventing your business model.

Let’s chat about what the transition could look like for you: Get Started with 4Sight