Deepening our funding in our companions

The Microsoft mission is obvious: empower each particular person and each group on the planet to realize extra. Our companions allow us to ship this mission in each buyer phase, trade, and area.

At Microsoft Ignite 2024, we put a highlight on the $661 billion complete addressable market (TAM) alternative for small and medium enterprise buyer segments in FY25 and past.* Cloud Resolution Supplier (CSP) companions are the trusted advisors who serve these clients and allow them to speed up their AI transformation with the value-added providers and options that create actual enterprise influence. CSP is our hero movement that permits these companions to drive this transformation.

In the present day, I’m happy to announce further updates designed to assist CSP companions drive extra renewals and upgrades, retain clients, upsell, and scale their companies. On the similar time, we are going to deepen our funding within the companions who’re delivering transformational influence with clients, aligned to our strategic imperatives.

In the present day’s bulletins are a continuation of our investments in CSP gives, capabilities, and enablement for FY25, by which we:

  • Aligned incentives to our 5 strategic priorities: Copilot on each machine throughout each function; AI design wins with each buyer; securing the cyber basis of each buyer; migrations, migrations, migrations; and Microsoft 365 core execution.
  • Devoted 70% of our complete accomplice incentives to companions that serve the small and medium enterprise buyer segments.
  • Launched new capabilities that assist companions entry, assessment, and reply to collectively deliberate leads shared by small and medium enterprise buyer sellers and monitor progress and efficiency between Accomplice Middle and MSX.
  • Launched a collection of latest promotions, together with our new-to-Microsoft 365 E5 provide to assist CSP companions win new clients. 
     

Introducing three-year subscription phrases in CSP

To develop deal-making capabilities and provide a extra constant expertise throughout buying channels, together with these transitioning from expiring Enterprise Agreements (EAs), we’re launching three-year subscription phrases for Microsoft 365 E3 and E5, with or with out Groups, in addition to Groups Enterprise licenses in CSP on June 1, 2025. They are going to be accessible for buy with three-year upfront or triennial/annual billing choices solely.

The brand new three-year SKUs for E3 and E5 with out Groups and Groups Enterprise standalone SKUs will probably be typically accessible on the CSP value record on June 1, 2025. These SKUs will seem on the Might 1, 2025, CSP value record preview within the Accomplice Middle pricing workspace.** The brand new three-year SKUs for E3 and E5 with Groups will solely be accessible on the top of sale (EOS) value record in Accomplice Middle on June 1, 2025. There isn’t any value record preview for the EOS value record.

At both midterm or renewal, you’ll be capable of change E3 and E5 subscription phrases for patrons who’ve EOS SKUs of Microsoft 365 and Workplace 365 Enterprise suites with Groups to those new three-year EOS phrases.

As well as, efficient July 1, 2025, a three-year subscription for Microsoft 365 E5 Safety and E5 Compliance mini suites will even be accessible.

And that will help you transition clients from on-premises options or improve them from Workplace 365, we’re launching new 10% low cost promotions for new-to-E3 or new-to-E5 clients on the CSP three-year subscription phrases. The E3 and E5 promotion will probably be accessible on June 9, 2025, whereas the E5 mini suite promotion will probably be accessible on July 1, 2025.

We’re additionally extending the Microsoft 365 Copilot Getting Began low cost promotion by June 30, 2025. 
 

Simplifying renewals and upgrades

Based mostly on accomplice suggestions, we made two essential course of enhancements on April 1, 2025, making it simpler to transition clients from EA to CSP and decreasing the processing time for midterm upgrades.

  • We launched a channel transfers interface in Accomplice Middle that helps companions renew expiring EA gives for Microsoft 365 E3 and E5 with Groups and Workplace 365 E1, E3, and E5 with Groups—that are EOS—into CSP and preserve the purchasers’ Groups entitlements.
  • We additionally launched AI-powered automation that streamlines midterm upgrades by dealing with subscription cancellations and credit routinely. The consequence: fewer duplicate SKUs and a discount of help decision occasions all the way down to sooner or later or much less. 
     

Introducing Web Paid Seat Provides reporting in Accomplice Middle

One of many frequent requests we get from companions is that will help you perceive the state of your Microsoft 365 set up base and act when wanted. We’re making Web Paid Seat Provides (NPSA) reporting accessible in Accomplice Middle in June 2025. This reporting will present visibility into the identical efficiency metrics that Microsoft workers can entry internally, creating extra readability throughout enterprise critiques and stronger joint execution. 
 

Deepening our funding in constructing a succesful, sustainable CSP ecosystem

We try to offer companions with gives, capabilities, and enablement to make the TAM alternative a actuality. We wish to guarantee our CSP accomplice ecosystem is well-positioned to create the seamless options and experiences our clients have come to anticipate whereas accelerating progress alternatives. Beginning October 1, 2025, we’re introducing new authorization necessities that can apply to direct invoice companions, distributors (previously oblique suppliers), and oblique resellers. 
 

Eligibility thresholds

A graphic depicting partner authorization updates for CSP in FY26.

We’ll additionally roll out up to date eligibility necessities for CSP incentives in FY26. These updates will align with the CSP authorization modifications, requiring CSP direct invoice companions, distributors, and oblique resellers to have streamlined and related experience by answer space.  
 

Let’s obtain extra—collectively

I’m frequently impressed by our companions and the influence you’ve made for patrons of all sizes as you empower them to succeed with Microsoft options. We proceed to make investments corresponding to these to make it simpler so that you can ship innovation, drive influence, and construct lasting buyer relationships.

Be part of us on Might 6, 2025, for our Speed up CSP Development with Company clients and new Copilot worth webinar to study concerning the newest Microsoft 365 gives and promotions, get updates on Copilot and brokers, and entry assets that will help you drive AI adoption.

On July 15, 2025, MCAPS Begin for Companions will go deeper on our priorities and GTM methods and can have devoted CSP breakout periods. I encourage everybody to mark that date in your calendar and be part of us as we construct pleasure for FY26. Registration particulars will probably be despatched quickly.

Collectively, we are able to form the way forward for AI for small and medium enterprise clients in FY25 and past.

Be part of the dialog on Microsoft Accomplice Group’s CSP companions dialogue board.

 

*Microsoft estimates based mostly on IDC information, October 2024. All through this doc, $ refers to US greenback (USD).

**Observe: There are two errors on the Might 1, 2025, value record preview for non-European Financial Space markets.

  • The Microsoft 365 E5 no Groups – 3-Yr SMC SKUs are absent from the Might 1, 2025, value record preview.
  • The Microsoft Groups Enterprise – 3-Yr SMC SKUs are mistakenly listed with a June 1, 2025, “EOS Begin Date.” It ought to have a June 1, 2025, “GA Begin Date.”

The Might 1, 2025, value record preview will probably be corrected and republished on Might 8, 2025. These errors is not going to influence transactability starting on June 1, 2025.