Why Your Managed Service Provider Should Also Be a Cloud Solution Provider

Time Business News

10-06-2025

As businesses increasingly migrate to the cloud, working with the right Managed Service Provider (MSP) can make a substantial difference—not just in IT support but also in cost savings, flexibility, and strategic advantage. If you're working with an MSP in London, you may not realise that your provider can also act as a Cloud Solution Provider (CSP)—reselling Microsoft and other cloud-based subscriptions, often at better rates than buying directly.
But not all MSPs are created equal. In this article, we explore what it means for an MSP to be a CSP, the types of licences available, and what you need to know about Microsoft's New Commerce Experience (NCE). We'll also look at how licence discounts work—and why some Managed Service Providers pass those savings on to clients, while others quietly pocket the margin.
A Cloud Solution Provider is an IT partner authorised by Microsoft (and other vendors) to sell cloud services and licences directly to businesses. This includes everything from Microsoft 365 and Azure to more specialised services like Power Platform, Dynamics 365, and Intune.
When your MSP in London is also a CSP, they can manage the entire lifecycle of your cloud subscriptions, from billing and provisioning to support and renewal. This approach provides businesses with one point of contact for both day-to-day IT needs and cloud licensing—reducing administrative overhead and improving accountability.
Purchasing your licences through a CSP linked to your Managed Service Provider offers several practical advantages: Simplified Billing: One consolidated monthly invoice for all cloud services.
One consolidated monthly invoice for all cloud services. Direct Support: The same trusted team supporting your network also manages your cloud licences.
The same trusted team supporting your network also manages your cloud licences. Flexibility: Easier to scale licences up or down as business needs change.
Easier to scale licences up or down as business needs change. Cost Efficiency: Potential access to better pricing and discounts than buying directly from Microsoft.
At Proxar IT Consulting, we've found that combining cloud licensing and IT support creates a more efficient, integrated experience for our clients—particularly in regulated or high-demand sectors.
When working with a CSP, businesses gain access to a broad catalogue of licences tailored to different roles and industries. These typically include: Business Basic / Standard / Premium
Enterprise plans (E1, E3, E5)
F1/F3 for frontline workers Pay-as-you-go infrastructure and services
Reserved Instances for longer-term savings Microsoft Defender for Endpoint / Cloud
Microsoft Purview for governance Sales, Customer Service, Marketing, etc. Microsoft Teams Rooms licences
Power BI Pro & Premium
Visio, Project, and other productivity add-ons
Many MSPs also offer bundled packages tailored to industry sectors, combining support services with licensing in a single monthly cost.
Microsoft's New Commerce Experience (NCE) has changed the way cloud subscriptions are purchased and managed. Launched to simplify and standardise commercial licensing, NCE offers three key subscription terms: Monthly Commitment: Higher flexibility, higher cost
Higher flexibility, higher cost Annual Commitment: Lower pricing, but fixed for a year
Lower pricing, but fixed for a year 36-Month Commitment: Longest-term savings, ideal for stable teams
Under NCE, businesses need to commit more deliberately to licence volumes and terms. While it introduces some rigidity, it also encourages better forecasting and budgeting.
When working with an MSP who understands NC, businesses receive clear guidance on choosing the right term and avoiding unnecessary over-provisioning.
Cloud licence pricing from Microsoft is subject to a partner discount structure. While MSPs typically receive anything upto 15% off the Recommended Retail Price (RRP), what they pass on to clients varies.
Some MSPs absorb the discount as profit, charging clients full RRP without transparency. Others, however, pass the savings on—either in full or in part—helping their clients keep operational costs down.
Not all providers offer the same level of service or ethics when it comes to cloud licensing. When choosing a Managed Service Provider in London, look for: Authorised CSP Status
Ensure the provider is certified by Microsoft as a direct or indirect CSP.
Ensure the provider is certified by Microsoft as a direct or indirect CSP. Transparent Pricing
Ask for a breakdown of licence costs and what discounts (if any) are being passed on.
Ask for a breakdown of licence costs and what discounts (if any) are being passed on. Expert NCE Knowledge
Navigating NCE can be complex. Your provider should offer advice tailored to your business model.
Navigating NCE can be complex. Your provider should offer advice tailored to your business model. Integrated Support
Licensing should be part of a holistic IT strategy, not an isolated service.
Licensing should be part of a holistic IT strategy, not an isolated service. Scalability
As your business grows, your IT partner should help scale licensing efficiently.
TIME BUSINESS NEWS