Is it just for the cloud? Yes. The name „Cloud Solution Provider“ means that it is „only“ the cloud. In addition, it is only Microsoft Public Cloud. Office365, SharePoint Online, Skype for Business Online, and other productivity solutions. But also security such as the Enterprise Mobility Suite (EMS) and Azure cloud platform services. By now, you may have heard that Microsoft has introduced a new requirement as part of the Cloud Solution Provider (CSP) program. As a reseller under the CSP, you`re probably wondering what to expect from the latest change to the Microsoft Cloud Agreement (MCA). Can I enter my foreign subsidiaries? That depends. The CSP programme is broadly divided into geographical regions. You can enter your sites or companies abroad under the same CSP agreement if they are located in the same geographical region where the CSP agreement was signed. One of these regions is, for example, the EU/EFTA or the LATAM region.
Provides an overview of the geographic regions defined by Microsoft. Q: On the tangent side, what`s all the noise about the interstate sales tax? A: Assuming you`re a Liquid Mercury Solutions customer, you`re most likely running the North American commercial cloud version of the MCA. If you have employees or users outside of the United States (in particular, Germany, EU, or China), you must sign additional documents for those regions and agree to the terms that go beyond the terms set forth in the agreements below. This patchwork of rules creates logistical problems for us when selling Office 365. For example, some states tax SaaS, hardware, and professional services at different rates. Some states charge a different rate depending on the county. And most states don`t specify exactly how they expect foreign companies to transfer tax because they didn`t expect it in the past. In short, the current situation is somewhat chaotic.
Until recently, Microsoft`s position in terms of Office 365 and Azure was that they were services, not products. Services are not taxed in many states (TC and DC are exceptions), and interstate sales were not taxable. A case before the Supreme Court last year changes it. We are now being asked to accept a state`s interpretation of what is taxable, what a good or service is, and to pay the tax accordingly. Some states have laws that define Software-as-a-Service as a taxable product. A: As of November 7, 2018, all customers of Microsoft cloud services such as Office 365 and Azure will be required to confirm their agreement with the „Microsoft Cloud Agreement,“ which sets out the terms of access and use for Microsoft 365 and other cloud offerings. We are required to obtain your consent as part of Liquid Mercury Solution`s partnership with Microsoft, the Microsoft Cloud Reseller Agreement (MCRA). Who do I pay to? The CSP provider is the partner from whom you order and who will invoice you. You process payment for cloud subscriptions directly with Microsoft or through a Microsoft distributor if your CSP partner is an „indirect CSP“ partner. But nothing to worry about on your side, your Cloud Solution Provider partner is the only partner you deal with. Who supports me? As part of the CSP program, the CSP provider, the Microsoft partner, will provide you with the support you need. It is a 24/7 „Microsoft mandatory for CSP partners“ support solution.
A number of (smaller) CSP partners are not able to offer these support services themselves on a permanent basis and work with a local or global distributor. If you`re having problems with your cloud solution, you`ll end up going to your CSP provider and not directly to Microsoft. Do I have to sign a contract with Microsoft? Yes. You order your cloud subscriptions from your Microsoft CSP partner and also receive support and invoices from them. .