Microsoft Module: Scope, Value, and Pricing

The Microsoft Module is a Gradient add-on built specifically for partners who sell a meaningful volume of Microsoft licensing. This article explains what it does, what it does not do, and how to decide whether it is right for your business. For setup instructions, see Setting up Microsoft + Pax8 Integration.

Use this article when

You are evaluating whether to add the Microsoft Module to your account
You want to understand what is included and what is not
You are unsure how it compares to the standard Pax8 or CSP integrations
You need to explain the value to a partner, a team member, or your finance team

What the Microsoft Module is

The Microsoft Module pulls licensing and assignment data directly from Microsoft via the partner APIs. It complements (rather than replaces) your distributor integration and gives you a Microsoft-side view of what licenses are actually assigned to users in each tenant.

In practical terms, the module gives you:

Per-tenant license counts straight from Microsoft (not just what the distributor says you bought)
Visibility into commitment terms and renewal dates
Active vs assigned user counts to spot reclaimable licenses
A second source of truth alongside your distributor's data, which catches discrepancies

Two views of the same truth

Your distributor (Pax8, Sherweb, Ingram, etc.) tells you what you bought. Microsoft tells you what is assigned. The module bridges that gap so you can reconcile both sides, not just one.

What the Microsoft Module is not

To set expectations correctly, here is what the module does not do:

What it is not	Why	What does this instead
A replacement for your Pax8 or distributor integration	It pulls assignment data from Microsoft, not purchase data from your distributor	Keep your distributor integration connected
A direct CSP purchasing tool	The module reads data, it does not buy or modify licenses	Use your distributor's portal for purchasing
A way to see Azure consumption costs	Module focuses on licensing, not consumption	See Azure Billing Reconciliation
Compatible without GDAP	Microsoft requires GDAP for partners to access tenant data	Set up GDAP first; see the Setting up Microsoft + Pax8 Integration guide
A replacement for backup, security, or anti-malware reporting	It pulls licensing, not telemetry	Use your security and backup vendor integrations

Who benefits from the Microsoft Module

The module pays for itself fastest for partners who:

Sell Microsoft 365 to more than 25 tenants
Have a noticeable gap between licenses billed and licenses assigned (often the case after a year or more of customer growth and churn)
Want NCE commitment term visibility for renewal planning
Have had reconciliation surprises driven by Microsoft-side changes that the distributor does not surface immediately
Sell across multiple distributors (Pax8 + direct, or Pax8 + Sherweb) and want one normalized Microsoft view

It is less compelling if:

You sell Microsoft to fewer than 10 tenants
Your distributor is your only Microsoft channel and you trust their data fully
You do not currently reconcile Microsoft billing month over month

How it works at a high level

The module uses Microsoft's partner APIs, which require Granular Delegated Admin Privileges (GDAP) between your partner tenant and each customer tenant. Once GDAP is in place, the module:

Reads the customer tenants you have GDAP into
Pulls the SKUs assigned in each tenant
Cross-references those assignments to active assigned users
Pushes the resulting counts into Gradient for reconciliation

GDAP is non-negotiable

Without GDAP, Microsoft will not return customer-level data through the partner APIs. If you do not yet have GDAP set up across your customer tenants, that is the first prerequisite. See the Microsoft Permissions Troubleshooting (GDAP & Consent Setup) article for the setup walkthrough.

NCE, commitment terms, and the module

The New Commerce Experience (NCE) changed how Microsoft licensing is sold and renewed. Subscriptions now have specific billing terms (monthly, annual) and specific commitment terms (monthly, annual, 3 year) that combine in ways that affect cancellation rights, pricing, and renewal.

The Microsoft Module surfaces these so you can:

See which licenses are on monthly commitments (cancellable mid-cycle) vs annual (locked in)
Spot upcoming renewal dates and prepare uplift conversations
Reconcile against the right SKU variant — annual commitment licenses bill differently than monthly

Map the right SKU variant

Just like in Pax8, Microsoft's data exposes multiple variants of the same product (with vs without billing and commitment term). Always map to the variant that includes both terms. The no-term variant produces inaccurate counts.

Pricing

Microsoft Module pricing is set separately from your core Gradient subscription. Pricing varies based on volume and the rest of your subscription. To get a current quote for your account:

Email support@meetgradient.com or your account contact
Include the approximate number of customer tenants you want to enable
We will provide pricing and walk you through how it fits with your current subscription

Why pricing is not published on a single page

Gradient subscriptions combine multiple products (Reconcile, Microsoft Module, MSP Studio+, ExpandIQ) and tiers. Rather than a static price list that goes stale, your account contact will give you accurate current pricing based on your specific configuration.

Decision checklist

If you are weighing whether to enable the module, use this as a quick gut check:

Question	If yes, the module helps
Do you bill Microsoft to more than 25 tenants?	Yes
Have you had a Microsoft reconciliation surprise in the last 6 months?	Yes
Do you sell across multiple Microsoft channels (Pax8 + direct, or multiple distributors)?	Yes
Do your customers actively churn users, leaving licenses orphaned?	Yes
Are you preparing for NCE renewals in the next 6 months?	Yes
Do you only have one distributor and a small Microsoft book?	Probably not yet

Next steps

If you decide to move forward:

Confirm GDAP is in place across the customer tenants you want to enable
Email support@meetgradient.com to enable the module on your account
Follow the Setting up Microsoft + Pax8 Integration guide for connection
Map services in the same way you map vendor services (always include the term variant)
Run a Full PSA Sync, then a Quick Sync on the Microsoft Module, then reconcile your first cycle

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