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Comparing CSP Program vs. Microsoft Volume Licensing: 5 Key Differences

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When it comes to licensing Microsoft technologies, businesses have two primary choices: Microsoft Volume Licensing and the Cloud Solutions Provider (CSP) program. In recent times, there has been a growing shift towards the CSP program globally. However, before making a decision, it’s crucial to consider certain factors. In this article, we’ll compare Microsoft CSP Program vs. Volume Licensing.

5 significant distinctions between these two licensing options

1. Software Assurance (SA):

Microsoft Volume Licensing: Software Assurance functions as insurance for a customer’s investment in Microsoft Software licenses. It encompasses various components that offer benefits to customers, including License Mobility and the ability to reassign licenses without a 90-day waiting period for eligible licenses.

CSP Program: Unlike the Microsoft Volume Licensing approach, the CSP program does not include Software Assurance. Nevertheless, the CSP program offers different advantages and features that businesses might find valuable.

2. Coverage and Usage:

Microsoft Volume Licensing: Volume licensing agreements are structured around coverage and deployment. This entails having the appropriate license for each software installation, user, and device. Even if the technology is not used across the entire organization, the Open Value Agreement necessitates coverage for each device in key areas such as the Office Suite, Client Access License, or Windows Enterprise.

CSP Program: In contrast, the CSP program is designed around usage. Businesses can subscribe to specific services for particular users, eliminating the need to assign licenses organization-wide if they are not required.

3. License Quantity Flexibility:

Microsoft Volume Licensing: The Volume Licensing program is tailored for discounted pricing based on volume. The minimum license purchase requirement is five licenses. While there’s no fixed upper limit, it’s advisable not to exceed 750 devices/users and to consider an Enterprise Agreement (EA) beyond this threshold.

CSP Program: The CSP program presents a flexible approach without minimum or maximum license prerequisites, and it operates without tier-based pricing.

Purchase Microsoft Cloud Licenses for your Business and receive:

•Licensing expertise
•Flexible billing
•Expert guidance
•24/7 critical admin support

Purchase Microsoft Cloud Licenses for your Business and receive:

•Licensing expertise
•Flexible billing
•Expert guidance
•24/7 critical admin support

4. Billing Structure:

Microsoft Volume Licensing: Under this program, businesses receive either a one-time upfront invoice or an annual invoice from their licensing partner. If different partners handle deployment or IT infrastructure management, separate invoices are received from each partner.

CSP Program: In the CSP program, a single CSP partner oversees both deployment and subscription management, leading to a consolidated billing system for all services. Importantly, billing occurs on a monthly basis, with charges only for services used during that particular month.

5. Choosing the Right Program:

There’s no definitive answer regarding which program is the ideal choice. The decision should be informed by your organization’s unique needs and the insights we’ve provided here.

Explore Licensing Options with the 365 Cloud Store:

The 365 Cloud Store offers licensing through both the CSP program and Open Value Agreement. For further details, visit our Microsoft volume licensing page or schedule a personalized consultation with our licensing experts.

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