Microsoft CSP vs direct licensing: what actually changes for customers

Choosing between CSP and direct licensing isn’t about “better” or “worse”. It’s about control and operational preference.

What CSP actually is

CSP (Cloud Solution Provider) is a reseller-led model for purchasing and managing Microsoft licences.

You still use the same products. What changes is how they’re bought and managed.

Key differences that matter

Billing

  • CSP: consolidated, often monthly, more flexible

  • Direct: rigid terms, annual or multi-year commitments

Flexibility

  • CSP: easier to scale up or down (within limits)

  • Direct: better for long-term, stable environments

Support

  • CSP: reseller often handles first-line commercial support

  • Direct: vendor-led, more formal escalation paths

Procurement overhead

  • CSP: lighter, faster

  • Direct: heavier contracts, more internal review

When CSP makes sense

CSP fits when:

  • Headcount fluctuates

  • You want predictable monthly spend

  • Procurement bandwidth is limited

  • You value external licensing oversight

When direct licensing makes sense

Direct works when:

  • You have stable, long-term usage

  • You want direct vendor leverage

  • You’re comfortable managing renewals internally

The mistake to avoid

Treating CSP as “just cheaper Microsoft”.

It’s a commercial and operational choice, not a discount vehicle.

Written by AmperStack, a procurement-led software licensing reseller focused on reducing cost, risk, and friction in enterprise SaaS buying.

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