Suggested by Josh Elmore – New
Overview:Angi (eGroup) highlighted a critical trend impacting partner revenue streams: as customers transition from EA to CSP, they often discontinue Unified Support because CSP includes break-fix support at no additional cost. This shift significantly reduces the perceived need for paid managed services, creating a structural GTM blocker for partners like eGroup.Detailed Feedback & Context:Customer Behavior:Many customers only use Unified Support for ticket resolution and do not leverage its additional value-add services (training, proactive engagement).When moving to CSP, these customers see an opportunity to eliminate costs while still receiving break-fix support, making managed services upsell difficult.Angi noted: “We try to upsell it and want to be in there, but as people make that move, they’re like, sweet, I can save money on this and what I still need tickets for is just included in being a CSP.”Market Dynamics:CSP indirect providers like Ingram offer robust Tier 2 support and absorb Microsoft escalation costs, reinforcing the perception that CSP support is “good enough.”This model commoditizes basic support and erodes differentiation for partners who traditionally relied on Unified Support gaps to position premium managed services.Partner Impact:Reduced attach opportunities for managed services, especially for customers who prioritize cost savings over enhanced experience.Even when prospects express dissatisfaction with Unified Support (e.g., poor value, lack of technical depth), converting them to paid managed services remains challenging for large enterprises due to cost competitiveness.Angi emphasized that non-break-fix requests (e.g., proactive optimization) are rare, limiting upsell triggers.Business Implications:Revenue Risk: Partners lose a key monetization lever as CSP adoption accelerates.Customer Experience Gap: Customers may settle for reactive support, missing opportunities for proactive optimization and strategic guidance.Program Misalignment: Current CSP support structure unintentionally disincentivizes managed services adoption, conflicting with Microsoft’s goal of driving partner-led value.Recap: eGroup + Enabling/FRP Microsoft Sync Wednesday, November 12 | Meeting | Microsoft Teams