Academic customer

Means any Customer that meets the education customer eligibility requirements found at http://www.aka.ms/academiceligibility.

Anti-corruption controls

If an internal review process identifies specific, or general, concerns about the integrity or values of a partner, a team of Microsoft employees is tasked with applying additional requirements on the partner (either required training or a meeting with Microsoft employees on a specific topic). 

Attestation 

Confirmation or agreement that terms and conditions presented are understood and accepted.

Authorization

Process to grant permission or approval to engage in a particular activity.

Binding 

An enforceable document with the customer’s unconditional acceptance of the partner’s offer, including details that establish the customer’s intent to be legally obligated to the terms of the offer.

Company 

The entity designated in an enrollment and when combined with any program-specific terms, governs how we will work together. 

Concessions 

Term used for anything granted which lowers the financial price paid by customer and documented through the contract package. This includes discounts, promotions, special offers, credits, reserved instances, spot pricing, and any other financial benefit that has been provided by Microsoft for the customer. All concessions are in scope for transparency and passthrough checks.

Consortium

An agreement between a group of companies to participate in a customer tender with the purpose of addressing the requirements of the tender (typically as the requirements are beyond the resources of any one member). This includes any subcontracting of any tender deliverables by a Microsoft LSP, distributor, or reseller. 

Consultation

Knowledge transfer via a tailored conversation. Delivery would typically be via a meeting (virtual or in-person) with a limited and known audience; could include multiple organizations, but similarity required amongst those organizations. Not designed for scale, optimized for depth. Typically, a one-off, planned meeting (pushed by the presenter); delivery ratio of one-to-one or one-to-few. 

Customer or End Customer

The ultimate entity who will use the Microsoft products. Typically, also the purchaser or buyer of the product. 

Direct partner

In a direct partnership, Microsoft has the relationship with the end customer, and pricing is provided by Microsoft. No additional margins are applied. Partners have a key role in the Direct model to support the customer, but they do not influence the pricing.

Discount

Means, collectively, any promotional or negotiated discount, offered by Microsoft to Company solely for the benefit of a Customer. If Microsoft provides Company with a Customer Discount for a Public Customer, then Company must ensure that the Customer Discount is passed through for the benefit of the Public Customer. This also means that the resale price to the Public Customer for prices attributed to Microsoft Products may not exceed the Maximum Resale Price.

Discount passthrough

Refers to the policy and controls to ensure Public Customers receive the full value of all discounts, reductions, credits, and special offers; thus, a process to confirm that the customer has received the full financial benefit provided by Microsoft.

Discount transparency

Refers to customer-facing communication to inform Public Customers of discounts and special offers provided through Microsoft which the customer is entitled to receive. 

Education customer

Refer to academic customer. 

Estimated Retail Price (ERP)

The published or list price for Microsoft products prior to any discount, change, or promotion. 

Government customer

Means, except as otherwise provided in a Channel Authorization, any “Eligible Entity” under Microsoft’s Qualifying Government Eligibility Definition found at www.aka.ms/governmenteligibility.

Government partner program

A program that authorizes Microsoft partners to distribute the Microsoft Select Plus and Enterprise Agreement volume licensing programs to government customers located in a limited number of authorized territories.

Indirect partner

In an Indirect partnership, partners have the same Microsoft SKUs available through a direct partnership. The final pricing to the end customer is provided by Indirect partner with margins. In this model, Microsoft can only provide the Estimated Resale Price to end customer. 

Legal entity

As part of internal process and system, confirmation of status that confirms an organization is appropriately registered as a business (varies by country).

Maximum Resale Price (MRP)

The total Estimated Retail Price for Microsoft Products less the applicable Customer Discount. 

Onboarding

The act or process of becoming ready and willing to participate as a partner; at Microsoft, this participation may be related to a new role or program.

Organizational classification

As part of internal process and system confirmation that an entity exists and belongs to a certain organizational category such as education, non-profit, government, etc.

Partner

Individuals or organizations united or associated with each other in activities or spheres of common interest; commercial partners include our Licensing Solution Partners (LSPs), distributors, and Cloud Solution Providers (CSPs). 

Partner Accountability Management (PAM)

The Microsoft Operations execution arm of Partner Remediation, Rehabilitation, and, in the future, Readiness services.

Partner Audit

A Microsoft business unit that is responsible for using a systematic, disciplined, technology-enabled approach to evaluate and improve the effectiveness of enterprise risk management, governance, controls, and company operations. Leverages a risk-based approach to review past deals and ask for contractually required evidence and support for transactions. Typically, there are four audits conducted per year, and each one includes 8–15 partners.

Partner Ecosystem Risk & Compliance (PERC)

A Microsoft business unit focused on providing compliance oversight, streamlining the partner experience, and reducing internal churn to enhance Microsoft’s third-party risk management capabilities.

Playbook

Materials to help a partner improve their compliance maturity or capabilities; includes explanatory documents, training, FAQ, or ‘how to’ documentation.

Product

Means the Microsoft online services, tools, software, hardware, or professional support or consulting services with respect to which Microsoft has grants Company certain rights or other benefits.

Public Customer

Means any entity that is either an education customer, government customer, or state-owned entity and meets eligibility requirements. (Links to eligibility requirements are listed within each definition in this glossary.)

Rehabilitation

The process through which a partner will undertake a specific set of mutually agreed upon governance and/or operational reforms to improve its ethics and compliance program.

Remediation

Actions taken by Microsoft to impose consequences and address the issues and risks resulting from a partner committing compliance infractions against its partner agreement.

Required training

Refer to https://partner.microsoft.com/ or Training | Required Training (microsoft.com) to leverage the two required modules for partners: Integrity & Ethics Training for partners and Contract Compliance.

Secondary review desk

A centralized compliance desk which delivers proactive, transaction-level corruption risk management capabilities across Microsoft’s legacy and modern Commercial Licensing and Services businesses. This team is empowered to require modifications, delay, stop, or reject a deal, in order to mitigate perceived risk. 

Special offer

Means any credits or other benefits (current or future) including previews and trials offered by Microsoft to Company for the sole benefit of a Customer. If Microsoft provides Company with a Customer special offer for a Public Customer, then Company must ensure that the Customer special offer is passed through by the transference of the full value of such Customer special offer to the Public Customer, as directed by Microsoft.

State-owned entity

Entities with sufficient financial links or controlled by the government that require the same diligence applied when interacting with its employees.

Training

Knowledge transfer in a repeatable, standardized format. Delivery may be via slide deck, video, Word doc or FAQ document, or other mode. May be modularized and specific for depth, or scalable and optimized for breadth. Typically, available on demand (pulled by the recipient); delivery ratio is one trainer to many recipients.

Vetting

Process to identify key details of an entity that wants to partner with Microsoft. At Microsoft, this process is performed by on a standard platform which identifies and validates if an entity meets the requirements to transact with Microsoft.

Volume licensing

A family of Microsoft licensing agreement offering packages for large numbers of users. Updated to “Commercial licensing” to include CSP partners and new commerce platform. Syn: Legacy programs.