Microsoft CSP Compliance Checklist
- CSP Program Enrollment: Ensure you’re enrolled in the Microsoft CSP program.
- Data Security: Protect customer data with encryption and proper security measures.
- Customer Consent: Obtain clear customer consent for data processing.
- Billing Accuracy: Maintain accurate billing and invoicing records.
- Terms & Conditions: Follow Microsoft’s terms and compliance guidelines.
Microsoft Cloud Solution Provider (CSP) Compliance Checklist
The Microsoft Cloud Solution Provider (CSP) program has become popular as more organizations transition to the cloud. Becoming a Microsoft CSP partner means gaining access to Microsoft’s commercial cloud services, offering greater opportunities for growth and innovation.
However, with these opportunities come responsibilities that CSP partners must uphold, especially regarding compliance and security.
Compliance is critical for ensuring that partners meet Microsoft’s standards, safeguard customer data, and provide reliable, secure cloud services.
This comprehensive checklist serves as a guide for CSP partners to navigate the compliance landscape successfully.
Core Security Requirements
Ensuring core security is a cornerstone of Microsoft CSP compliance. These requirements aim to secure access to cloud services and protect both partners and customers from threats.
Mandatory MFA Implementation
Multifactor Authentication (MFA) is mandatory for every user account in partner tenants. MFA adds an essential layer of security by requiring two or more verification methods to access Microsoft’s commercial cloud services. This requirement extends to all user accounts that:
- Access Microsoft commercial cloud services.
- Conduct transactions through the CSP program using the Partner Center.
- Interact with APIs.
This rule minimizes the risk of unauthorized access and helps maintain the security integrity of the CSP environment.
Security Infrastructure
To further bolster the security posture, Microsoft mandates that CSP partners:
- Enable Microsoft Entra ID P2: This feature must be activated for all Admin Agents in the CSP tenant. It enables comprehensive identity protection and conditional access capabilities.
- Implement Risk-Based Conditional Access: Risk-based Conditional Access capabilities ensure users can only access services when their behavior is consistent with expected patterns.
- Utilize Microsoft Entra Privileged Identity Management (PIM): PIM helps CSP partners manage, control, and monitor access to important resources. It reduces the risk of excessive, unnecessary, or misused access permissions.
Operational Requirements
Operational requirements include fulfilling partner prerequisites, managing customer agreements, and providing robust support.
These elements ensure partners are fully equipped to operate effectively.
Partner Network Prerequisites
- Microsoft Partner Network ID: Partners must maintain an active Microsoft Partner Network (MPN) ID valid for their operational location. This is the fundamental identification used by Microsoft to determine partner status.
- Compliance Documentation: Partners must complete all required documentation to maintain their status.
- Technical Infrastructure: Establishing the technical infrastructure necessary to deliver customer support is crucial, ensuring that partners can efficiently meet customer needs.
Customer Agreement Management
- Microsoft Customer Agreement (MCA): All customers must sign the MCA outlining their rights and responsibilities when using Microsoft services. CSP partners are responsible for collecting and maintaining proper documentation of these agreements.
- Regular Review: Agreements must be regularly reviewed and updated to reflect the evolving compliance landscape.
Technical Security Controls
These controls focus on securing partner and customer environments. Proper implementation and monitoring are key to maintaining compliance and mitigating risks.
Azure Security Monitoring
- Fraud Notifications: Partners must actively monitor for Azure fraud notifications and respond to suspicious activities promptly.
- Cryptocurrency Mining Activities: Since cryptocurrency mining is a major misuse of cloud resources, CSP partners must also monitor activities for unauthorized mining.
- Suspending Resources: When suspicious activities are detected, partners need the capability to suspend affected Azure resources immediately.
Access Management
- Regular Audits: Tenant administrator accounts should be audited to ensure proper use and detect unusual activities.
- Least-Privilege Access: The principle of least-privilege access should be followed to limit user permissions to only those necessary for their role.
- Phishing-Resistant MFA: For tenant administrators, phishing-resistant MFA provides an added level of security to reduce the risk of unauthorized access through social engineering attacks.
Read how billing works in CSP.
Audit and Compliance
Audit and compliance activities are integral to validating the proper implementation of security and operational processes.
Regular Security Reviews
- Microsoft Entra Audits: To ensure the security of identities and permissions, conduct regular audits of Microsoft Entra sign-ins and configuration changes.
- Cross-Tenant Monitoring: Cross-tenant activities must be monitored to maintain visibility across customer and partner environments.
- Comprehensive Log Retention: Ensuring comprehensive log retention is vital for understanding incidents after the fact and providing evidence of compliance.
Resource Monitoring
- Subscription Reviews: Regular reviews of Azure subscriptions and resource provisioning ensure proper configuration and help identify unauthorized changes.
- Cost Anomaly Alerts: Establishing cost anomaly alerts helps detect unusual spending patterns, which could indicate fraud or misuse of resources.
Partner Relationship Management
Managing partner relationships effectively is important for maintaining compliance, transparency, and customer satisfaction.
Customer Support Infrastructure
- Dedicated Support Channels: Partners must establish dedicated support channels to handle customer inquiries efficiently.
- Support Response Times: To ensure service quality, it is essential to maintain the required support response times and document support procedures and escalation paths.
License Management
- Accurate License Inventory: Implement systems for license procurement, deployment, and management. Maintaining accurate license inventory and monitoring usage ensures compliance with Microsoft licensing rules.
- Subscription Renewals: Efficient handling of subscription renewals is critical for minimizing disruptions to customer services.
Documentation Requirements
Proper documentation is the foundation of compliance, indicating that Microsoft requirements are met.
Compliance Records
- Security Implementations: Maintain detailed records of all implemented security measures and processes.
- Customer Agreements: Document customer agreements, contracts, and any compliance certifications. These records must be readily available for audit or verification purposes.
Financial Requirements
CSP partners have certain financial requirements to maintain their direct billing status, including a minimum revenue threshold.
Revenue Thresholds
- USD 300K Minimum: Direct-bill partners are required to maintain a minimum annual CSP revenue of USD 300K.
- Revenue Verification: Partners must be prepared for Microsoft to verify their revenue, so they should consistently track trailing twelve-month revenue.
Infrastructure Capabilities
To meet Microsoft’s infrastructure standards, partners must establish robust billing systems, provisioning infrastructure, and customer support systems. Security and compliance monitoring tools must also be deployed to safeguard the environment.
Read our tips on how to negotiate CSP agreements.
Geographic Considerations
Compliance can vary based on the regions in which a CSP partner operates.
Market Compliance
- Operational Authority: Verify operational authority in intended markets to comply with regional requirements.
- Currency Handling and Data Protection: Proper currency handling capabilities must be maintained, and partners must adhere to regional data protection regulations.
Service Provider Responsibilities
Microsoft CSP partners are responsible for ongoing customer management, support, and development of industry-specific solutions.
Customer Management
- Regular Engagement: Engaging with customers regularly ensures that their evolving needs are addressed proactively.
- Managed Services: Partners are expected to provide managed services and implement industry-specific solutions.
Security Best Practices
Security best practices are essential to ensure the continued integrity of the CSP environment.
Account Management
- Account Separation: To reduce risk, administrative and collaboration accounts must be kept separate.
- Audit Privileged Access: Periodic audits of privileged access accounts are necessary to ensure no unauthorized users have elevated privileges.
- Passwordless Authentication: Implementing passwordless authentication where feasible can significantly reduce vulnerabilities.
Partner Program Compliance
- Program Requirements: Active membership in the Microsoft AI Cloud Partner Program and the authority to sign legal agreements are mandatory.
- Infrastructure Capabilities: Partners must meet minimum infrastructure capabilities, including technical, operational, and support infrastructure.
Risk Management
Managing risk effectively involves implementing comprehensive security measures, incident response planning, and business continuity procedures.
Security Controls
- Regular Assessments: Conduct regular risk assessments and ensure the implementation of robust security controls.
- Incident Response: A documented incident response plan is vital to mitigate the impact of security breaches.
- Business Continuity: Business continuity procedures must be established and tested regularly to minimize downtime during disruptions.
Support Requirements
Providing quality support is a key part of maintaining compliance and customer satisfaction.
Service Level Agreements
- Support Packages: CSP partners must purchase appropriate support packages (Advanced or Premier) and maintain the required response times.
- First-Level Support: Partners must provide first-level support for cloud products and document support procedures.
Monitoring and Reporting
Monitoring and reporting are essential for tracking compliance, security, and overall performance.
Compliance Tracking
- Regular Assessments: To maintain visibility into the effectiveness of security measures, regular compliance assessments and performance monitoring are required.
- Customer Satisfaction: Tracking customer satisfaction helps partners identify areas for improvement in service delivery.
- Revenue Reporting: Keeping revenue reports up-to-date is crucial for meeting Microsoft’s financial requirements.
Training and Certification
Maintaining an effective team involves continuous training and certification.
Staff Requirements
- Security Training: Partners must ensure that staff undergo regular security training, product certifications, and compliance awareness programs.
- Technical Development: Employees must continue to develop their technical capabilities to support Microsoft products effectively.
Customer Data Protection
Protecting customer data is one of the fundamental responsibilities of CSP partners.
Data Security
- Protection Measures: Implementing data protection measures, conducting regular audits, and complying with data privacy regulations are critical.
- Data Handling: Secure data handling procedures must always be followed to avoid data leaks or breaches.
Business Continuity
Preparing for disruptions helps CSP partners maintain customer trust and ensure continuous service.
Disaster Recovery
- Recovery Procedures: Document disaster recovery procedures and conduct regular backup verifications.
- Continuity Testing: Business continuity testing ensures readiness for potential incidents and mitigates downtime effectively.
FAQ: Microsoft CSP Compliance Checklist
What is Microsoft CSP compliance?
CSP compliance ensures that service providers follow Microsoft’s requirements for cloud solutions, data security, and customer protection.
How do I enroll in the Microsoft CSP program?
You can enroll through the Microsoft Partner Center by meeting all eligibility requirements.
What security measures must be implemented?
You must implement data encryption, secure access controls, and protect customer information.
Do I need customer consent to handle data?
Yes, clear and documented customer consent is necessary for processing data.
What are the billing requirements for CSP?
Billing must be accurate, transparent, and aligned with the services provided to customers.
Can I resell Microsoft services without a CSP agreement?
No, a CSP agreement is required to resell Microsoft cloud services legally.
How often should I review my CSP compliance?
Review your compliance regularly to ensure it aligns with Microsoft’s updated guidelines.
What penalties exist for non-compliance?
Non-compliance may result in suspension or termination of your CSP partner status.
How can I ensure my billing records are accurate?
Regularly audit your billing processes, ensure transparency, and match invoicing with usage.
Are there any third-party tools for CSP compliance?
Some tools help manage billing, security, and customer data consent for CSP compliance.
Is customer data shared with Microsoft under CSP?
Customer data is processed under strict terms, and Microsoft does not share it without consent.
What documentation is required for CSP compliance?
You must keep records of customer consent, data protection measures, and billing statements.
How does Microsoft monitor CSP compliance?
Microsoft conducts periodic audits and reviews to ensure compliance with its standards.
Can I modify customer contracts under CSP?
Modifying customer contracts is allowed as long as the changes align with Microsoft’s terms and laws.
Where can I find Microsoft’s CSP guidelines?
Microsoft’s CSP guidelines are available in the Partner Center, and official documentation is available online.
