10 Million Nonprofits. $16 Billion Opportunity. One Cloud Revolution.

The Cloud Moment No Partner Can Afford to Miss

Across the world, 10 million nonprofits and educational institutions power communities, schools, and social causes. Together, they represent a 16 billion dollar total addressable technology market. Yet most still run their daily operations on on-prem systems built for a pre-AI era.

Microsoft’s Enhancement Plan fees have risen to 20 per cent, making legacy renewals more expensive than migration. At the same time, Microsoft’s nonprofit grants, education benefits, and cloud incentives have never been stronger.

For CSP Indirect Resellers, this is the moment to lead because every customer moved to the cloud buys more, stays longer, and earns more through rebates, incentives, and recurring revenue.

From Legacy to Longevity

On-premises Business Central or NAV environments were once the default. The cost equation has now flipped.

On-prem licensing demands a 20 per cent annual Enhancement Plan fee just to stay supported. Over five years, customers have paid the original licence cost again without gaining innovation or AI capabilities.

In the cloud, upgrades, security, and Copilot access are included automatically. The infrastructure is managed by Microsoft. Data is encrypted end-to-end. The model scales with a customer’s mission, not against it.

The math is simple. On-prem is a cost center. Cloud is a growth engine.

Dual Use Rights (DUR): The Bridge That Ends Migration Fear

Dual Use Rights (DUR) give every partner a powerful story to tell.

When a customer buys a Dynamics 365 Business Central Online licence, they are entitled to run the equivalent on-prem version at no additional cost. This removes the fear of switching entirely.

Customers can maintain their existing setup while testing and adopting SaaS with no double licensing and no downtime. For CSP partners, it means shorter persuasion cycles and faster revenue. DUR keeps the door open and the cash flow consistent.

Licensing That Works for Impact Sectors

Microsoft’s nonprofit and education licensing structures were redesigned for accessibility and affordability, and that directly translates into partner opportunity.

Eligible nonprofits can receive up to 300 Microsoft 365 Business Basic licences free of charge, and up to 75 per cent discounts on premium plans such as Business Premium or E3.

In the education space, verified institutions that purchase Microsoft 365 A3 or A5 for faculty automatically receive student licences at a 1:40 ratio, giving forty student licences for every paid faculty seat. That creates massive scale potential for CSP resellers because every faculty sale can multiply into hundreds of free seats that still require deployment, configuration, and ongoing management.

Each of these offers reduces your customer’s entry cost while increasing your licence management and service revenue.

Why Staying On-Prem Now Costs More Than Moving

On-Prem NAV or BC requires a 20 per cent annual Enhancement Plan fee for upgrades, whereas Business Central Online includes upgrades automatically. Infrastructure for On-Prem is customer-funded, while Business Central Online is Azure-hosted and managed by Microsoft. Security in On-Prem involves manual patching, but Business Central Online benefits from built-in Zero Trust architecture and Microsoft Defender. AI access is not available in On-Prem, but Business Central Online offers integrated tools like Copilot, Power BI, and Power Platform. Nonprofit (NPO) pricing is limited in On-Prem, whereas Business Central Online provides up to 75 per cent discounts and free grants. Partner margins in On-Prem are based on one-off resale, while Business Central Online supports recurring revenue and MCI rebates of up to 10 per cent.

A customer remaining on-prem is paying more for less while partners miss out on cloud rebates, consumption growth, and long-term retention. The longer a customer delays, the less profitable the relationship becomes for both sides.

The CSP Margin Multiplier

The CSP model rewards transformation rather than transaction.

Every cloud seat sold generates monthly recurring revenue. Every workload added increases your Annual Contract Revenue. Every migration unlocks Microsoft Commerce Incentives, Copilot Accelerate funding, and Deployment Accelerator funds for partner-led workshops.

Through 4Sight Dynamics Africa, CSP Indirect Resellers gain direct access to billing alignment, rebate optimisation, and Elevate program funding, turning complex programs into measurable profit levers.

A single migration to Business Central SaaS or Microsoft 365 can trigger not only licence margin but also wrap-around revenue in Power Platform, Copilot adoption, and Azure hosting.

Power Platform: The Hidden Upsell Engine

Nonprofits and schools adopting Business Central Online or Microsoft 365 Business Premium automatically receive Power Platform entitlements, including Power Apps, Power Automate, and Dataverse.

Every SaaS customer already has the foundation for automation. The opportunity lies in activation.

Offer practical services such as
• Grant application automation with Power Automate
• Donor or volunteer portals with Power Pages
• Centralised dashboards powered by Dataverse and Power BI

Each deployment drives consumption, strengthens relationships, and positions you as the strategic technology partner rather than the licence vendor.

Security, Compliance and Trust

FY26 marks the year of Secure AI Transformation. Microsoft’s Zero Trust stack, including Defender, Entra ID, and Purview, now comes standard in most nonprofit and education licences.

This gives partners a major sales advantage. Instead of defending cloud security, you can lead confidently with Microsoft’s compliance standards, from ISO and SOC certifications to GDPR and data residency guarantees.

For organisations handling donor or student information, these frameworks are essential to maintain trust and compliance.

Five Levers for Partner Growth

To help CSP Indirect Resellers act on this opportunity immediately, 4Sight Dynamics Africa recommends focusing on five key growth levers.

1. Identify Hybrid Readiness
Target customers with active Enhancement Plans. They are already budgeting for maintenance but gaining no innovation.

2. Lead with Dual Use Rights
Present the hybrid model as a no-risk bridge that allows them to modernise at their own pace.

3. Bundle Cloud and Impact Offers
Pair Business Central Online or Power Platform solutions with the nonprofit and education licence grants for maximum impact and affordability.

4. Demonstrate ROI Clearly
Use TCO (Total Cost of Ownership) calculators to show the cost savings from reduced infrastructure, automatic updates, and rebate accruals.

5. Reinvest Incentives
Use Microsoft Commerce Incentives and Copilot Accelerate funds to finance workshops, pilots, or marketing campaigns to drive net-new opportunities.

The Bottom Line

Cloud is no longer an upgrade. It is a business equaliser.

For nonprofits, it levels access to the same enterprise-grade tools used globally. For schools, it transforms learning infrastructure. For partners, it creates a recurring revenue model that compounds over time.

The numbers tell the story. Staying on-prem costs 20 per cent more each year. Moving to SaaS earns up to 10 per cent back in rebates. Every migration compounds future licence and service revenue.

Microsoft’s AI Business Solutions era is underway, and purpose-driven organisations are next. The only question left is who will lead them there.

The partners who move first will own the future. Numbers never lie, and neither does momentum.

For more information, please contact This email address is being protected from spambots. You need JavaScript enabled to view it.

About the Author

Salomay Gower
Microsoft SureStep Ambassador for Nonprofit and Education (Africa)
Representing 4Sight Dynamics Africa, Microsoft’s Direct Distributor for the region.
Salomay works with Microsoft Elevate teams to empower CSP Indirect Resellers across Africa to modernise their Nonprofit and Education customers through AI-driven Business Applications and Modern Work solutions.