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CSP (Cloud Solution Provider)

Microsoft's modern partner-led channel for cloud subscriptions. Monthly or annual term commitments through a partner, with the New Commerce Experience (NCE) governing cancellations and seat changes.

Also known as: Cloud Solution Provider, NCE

Last reviewed by MSLicenseHub Licensing Desk on 2026-07-20.

At a glance

Licensing model
Subscription via partner (NCE terms)
Related entities
NCE · Partner of Record · Microsoft 365 · Azure · Dynamics 365

Compare options

CSP NCE: Monthly vs Annual vs Triennial
AttributeMonthlyAnnualTriennial
Price premium~20% vs annualBaselineLowest
Cancel mid-termAnytime (next month)First 7 days onlyFirst 7 days only
Reduce seatsAnytimeAt renewalAt renewal
Add seatsAnytime, proratedAnytime, proratedAnytime, prorated
Price lockNo12 months36 months
Best forProject / variable headcountStable teamsLong-term stable teams
New Commerce Experience (NCE) term commitments. Shorter terms cost more per month but allow seat decreases at renewal; longer terms lock the price and seat count.

Frequently asked questions

CSP vs Volume Licensing — what is the difference?

Cloud Solution Provider (CSP) is the modern Microsoft channel where a partner manages your subscription. Billing is monthly or annual, seats can scale up and down each month, and the partner handles support tickets. Best for cloud-first workloads (Microsoft 365, Dynamics 365, Azure) where flexibility matters.

Volume Licensing (Open Value, MPSA, Enterprise Agreement) is the traditional channel for perpetual on-premises licenses — Windows Server, SQL Server, Office LTSC. Three-year commitments are typical, with optional Software Assurance for upgrade rights. Best for perpetual server licensing where you want to own the asset.

Most organizations use both: CSP for the cloud subscriptions and Volume Licensing for the on-prem perpetual licenses.

Full answer →

Other licensing hubs

Windows ServerSQL ServerMicrosoft 365Office (perpetual)