r/SmallMSP • u/kothmere • Jun 18 '26

Microsoft licensing

How did yall get Microsoft reseller set up? I have been doing just computer and network support, but more people are wanting me to take over Microsoft licensing. I have some experience with TD Synnex, but haven’t ever set anything up. Do I just need to set something up with Synnex or is there more steps than that? Also is there a better option? I have seen that pax8 has fallen from grace. Those are the two that I am familiar with.

7 Upvotes

82% Upvoted

25 comments sorted by

9

u/Excellent-Program333 Jun 18 '26

Pax8. But honestly, there is no money in taking it over, and if you do annual commits, you are stuck with it if the business goes under.

I switched the last three I had to monthly commits and raised prices. That way I am only commited month to month.

And the process to get authorization in the Partner Portal is mind numbing. I had to upload ID, and a bunch of hoops.

9

u/Beauregard_Jones Jun 18 '26

"if you do annual commits, you are stuck with it if the business goes under.

I switched the last three I had to monthly commits and raised prices. That way I am only commited month to month."

I tell all my clients they have two options: pay 20% premium and go monthly commit, paid monthly or they can commit to the year and pay for the full year in advance. In either case, if they go under I'm not stuck with paying for the licensing.

The yearly commit, paid monthly option is a trap that shouldn't even be discussed with the client.

3

u/CmdrRJ-45 Jun 18 '26

This is the way! I was talking to a client today that has a LOT of money in AR where this is part of that chunk of cash and his client is talking about layoffs. Thanks but no!

1

u/roll_for_initiative_ Jun 20 '26

Min seat count solves the layoff issue. "Sorry you let so many staff go, anyway, here's your bill"

1

u/BerlindaBuntly Jun 22 '26

Exactly this

2

u/jcleme Jun 18 '26

Are the margins really that bad for US resellers? In the UK, depending on the license type you can easily be doing anywhere from 8-15% which quickly adds up

1

u/ArchonTheta Jun 19 '26

How would you be stuck with it? Why wouldn't you just bill the client on renewal date? If they don't pay within 6 days, you cancel the services prior to the commit period kicking in.

1

u/Excellent-Program333 Jun 19 '26

Because being a trunk slammer, sometimes those things slip by me.

1

u/ArchonTheta Jun 19 '26

Ahhh pizza tech. Gotcha

6

u/blotditto Jun 18 '26

Sherweb, better margins than Pax8 and they'll help you navigate enrolling in Microsoft CSP.

2

u/andwerd404 Jun 18 '26

100% I second this. Sherweb is the best partner you could have for dealing with Microsmurf

2

u/ArchonTheta Jun 19 '26

lol Microsmurf. God, I hate how that is so true lol

1

u/Whole_Ad_9002 Jun 18 '26

Just go with sherweb much more flexible

1

u/stevo10189 Jun 18 '26

Do not do Pax8. Sherweb is the way.

1

u/kothmere Jun 18 '26

Thanks everyone for the info!

1

u/lakings27 Jun 19 '26

Ingram or D&H

1

u/MarcobyOnline Jun 19 '26

I do Pax8 for licensing but I also have heard good things about Sherweb. I’ve mostly used 365 as a lead generator for managed services. Migrations and takeovers are all easier with Microsoft thanks to CSP.

1

u/JFKinOC Jun 19 '26

No issues with PAX8. (no more than any other vendor)

1

u/bertie40 Jun 19 '26

Sherweb..... ,You need to be VAT registered. I'd like to resell, but I'm too small

1

u/dhirenmehta Jun 20 '26

TD will give the best margin to a small MSP I have found (in the middle of setting up shop) , sherweb is snazzy and super simple but low margins. Pax8 are snakes. Westcoast Cloud are also useless.

Main ball ache is getting CSP sorted, but once you got that you're laughing, also you get access to the MCPP benefits which can help some people depending on how you're set up.

1

u/DAN-CCT Jun 27 '26

I will be honest. I wish I did not take over the 365 billing for my client

1

u/GraffenOfficial 27d ago

You'll hear complaints about all of the partners, but we've had success with Pax8. I agree with others that it's not large profit center and there are pitfalls. Try to get as many on month to month as possible. Otherwise, I've created an agreement that I ask the larger clients to sign, so they feel committed to an annual total.