The latest information in one place
Welcome to our Microsoft Cloud and Modern Work partner newsletter for 2026!
Every month, we’ll release the latest updates from Microsoft, covering Modern Work, Business Applications and Copilot.
This includes relevant news, releases and developments for the Microsoft Security suite.
Each edition will highlight items and actions that are important and/or time sensitive in the first ‘TL:DR’ section.
Missed a month? Check our Newsletter Archive section for posts dating back to 2025.
Bookmark this page for easy reference and check back each month for your one-stop Microsoft update shop!
July 2026
TL:DR PRIORITY UPDATES.
MICROSOFT 365 PRICING & PACKAGING CHANGES NOW IN EFFECT
As of July 1st, 2026 global price increases of 5%–43% now apply to most Enterprise, Business, and Frontline SKUs, alongside significant new capability additions (Defender for O365 P1, Intune Plan 2, Security Copilot, Copilot Chat enhancements).
Renewals on or after July 1 are impacted. Audit your customer base and prioritise outreach immediately.
MCAPS START FOR PARTNERS (JULY 22) & FY27 GTM KICKOFF (JULY 28)
Two no-cost digital events shape FY27 partner alignment. MCAPS Start (July 22) delivers strategic priorities and investment direction from Microsoft leadership. GTM Kickoff (July 28) follows with tactical solution-area tracks: AI Business Solutions (with a dedicated CSP track), Commercial Cloud & AI, and Security.
Register for MCAPS Start & FY27 GTM Kickoff
FY27 CSP INCENTIVE PROGRAM REDESIGNED. FLAT REBATES RETIRED
Microsoft has fundamentally restructured the FY27 incentive model, removing core incentives and rewarding partners hero products and growth. Incentive opportunity is now up to 19.5% on Modern Work and D365, and up to 15% on Azure, flowing through Strategic Product Accelerators and a Growth Accelerator.
FY27 GROWTH MARGINS FOR SELECT AI WORKLOADS (JULY 2 ANNOUNCEMENT)
From October 2026, Microsoft will introduce Growth Margins as an additional earning layer on selected CSP NCE Commercial SKUs, rewarding partners for driving qualifying customer growth across strategic AI workloads. At the same time, Microsoft will reduce margins on selected legacy standalone products, reinforcing the shift toward premium, AI-led customer upgrade motions. Full qualifying SKU lists, earning rates, and detailed eligibility guidance will follow.
M365 BUSINESS STANDARD/PREMIUM WITH COPILOT NOW PERMANENT DURABLE SKUS
Starting July 1, promotional Copilot bundles have transitioned to permanent SKUs: Business Standard with Copilot at AUD 35.20 / NZD 38.00 per user per month and Business Premium with Copilot at AUD 47.90 /NZD 51.80. Lead all default SMB offers with these SKUs to embed AI into every conversation.
COPILOT COWORK NOW GENERALLY AVAILABLE WORLDWIDE (JUNE 30, 2026)
Cowork — Microsoft’s agentic system that plans, executes, and delivers complete work — is now GA with GPT-5.5 Thinking. Enabled via usage-based billing with a new Cost Management Dashboard in the M365 admin centre. Powered by Work IQ, it turns Copilot from an assistant into an AI doer.
NEW AGENT 365 PREREQUISITE LICENSING (EFFECTIVE JUNE 1, 2026)
New Agent 365 purchases now require one of the following prerequisite licences: M365 E5/A5/Business Premium, OR Defender Suite + Purview Suite (or Edu/FLW equivalents). Existing customers and M365 E7 customers are unaffected — position E7 as the simplified all-in-one path.
NEW WINDOWS 365 CSP PROMOTIONS — SAVE UP TO 25%
New Windows 365 promotions for both new and existing subscribers make Cloud PC significantly more accessible for SMB and mid-market customers. Combined with the recent 20% permanent Windows 365 Business price reduction, this is a strong re-engagement moment for prospects previously priced out of Cloud PC.
3-YEAR M365 COPILOT PROMOTION — 15% OFF FOR 300+ LICENCES
Announced June 8, this multi-year enterprise Copilot offer rewards larger customers committing to 3-year terms with a 15% discount. Ideal for mid-market and enterprise customers standardising Copilot across their organisation.
NEW EA-TO-CSP MIGRATION PATH IN PARTNER CENTRE (JULY 7)
Microsoft has introduced new capabilities in Partner Center enabling smoother movement of customers from Enterprise Agreement to CSP — no downtime, billing-only transition. Unlocks a significant opportunity for indirect resellers to acquire mid-market customers whose EA renewals are becoming untenable.
PARTNER MARKETING CENTER PRO
An AI-powered hub for end-to-end marketing campaigns, Partner Marketing Center Pro includes an AI assistant, campaign customization, translation, and comprehensive campaign reporting.
This experience is available through a partner benefits package, a Solutions Partner designation, or ISV Success.
PARTNER SKILLING HUB
Deepen your expertise across Microsoft solution areas and hone your technical or sales skills with comprehensive, flexible skilling and training. You’ll find dedicated learning tracks for every role and technical certification, available virtually, in-person, live, and on-demand.
TECHNICAL PRESALES AND DEPLOYMENT SERVICES
Available through several offerings, this benefit provides personalized, one-on-one consultations so you can plan, build, and publish your services and applications faster. Only partners with Solutions Partner designation, Partner Success Core Benefits, or Partner Success Expanded Benefits are eligible for service.
CSP PROGRAM UPDATES
FY27 Microsoft Partner Kickoff – MCAPS Start for Partners & GTM Kickoff
Two major FY27 partner events are confirmed for July 2026. MCAPS Start for Partners takes place on 22 July 2026 as a no-cost, digital-only event for FY27 priorities, investment focus, and go-to-market direction. Microsoft senior leadership including Judson Althoff, Nicole Dezen, and Stephen Boyle will share direction on Frontier Transformation, AI investment areas, and incentive direction.
One week later on 28 July 2026, the Microsoft Partner FY27 GTM Kickoff Event provides a deeper tactical layer across three solution-area tracks: Microsoft AI Business Solutions (with a dedicated CSP track), Microsoft Commercial Cloud and AI, and Microsoft Security.
Register here: https://events.microsoft.com/flow/microsoft/startpartners27 | https://partner-gtm.msftevents.io/
FY27 CSP Incentives: Growth Matters More Than Ever
Microsoft has overhauled its FY27 CSP incentive model, shifting investment away from licence volume and toward growth, AI, Security, and premium solutions.
Key changes:
- Core incentives removed for Modern Work and Dynamics 365 CSP indirect resellers.
- MW and Dynamics partners now earn incentives primarily through eligible Accelerator SKUs and growth
- 3% core incentive remains for Azure.
- Growth incentives increase to 12.5%, with earning potential of:
- Up to 19.5% on Modern Work & Dynamics 365
- Up to 15% on Azure
- New investment areas: AI Business Solutions, Cloud & AI Platforms (Azure), and Security.
Recommended Actions:
- Align offerings to AI, Security, and Azure solution plays.
- Position Business Premium as the SMB standard
- Lead with Copilot, E5, and E7.
- Prioritise year-on-year customer growth.
Updated Microsoft Partner Agreement (MPA) & Program Guide — Effective December 1, 2026
Microsoft has published updated versions of the MPA and CSP Program Guide, both taking effect December 1, 2026. For all partners except CSP direct bill and distributor partners in France, the updated MPA takes effect automatically — no action, signature, or acknowledgment is required.
Action Required: Review the updated MPA and Program Guide in Partner Centre.
Other Program Updates
- Custom Contract Lengths Now Available (July 6) — greater flexibility for CSP subscription terms
- Partner Code of Conduct Update (July 1) — review updated conduct requirements
- CSP Software Pricing Update (July 7) — review updated software subscription pricing
- Explore MCAPS Start for Partners Sessions (July 1) — session catalog now live
- Specialization Skilling Updates (June 30) — several certifications retired and replaced with AI-focused paths
- MFA Enforcement for Partner Centre APIs — now fully in effect
FY27 New Growth Margins for Select AI Workloads
From October 2026, Microsoft will introduce Growth Margins as an additional margin layer on select SKUs, applied on top of existing base margins. In simple terms, the more partners drive qualifying customer growth, the more margin they can earn.
Base margin provides predictable earnings, while Growth Margin creates recurring upside on eligible growth transactions. Margins are recurring and Partners who keep growing their customers can earn it repeatedly across qualifying transactions.
The three growth motions
Growth margin is earned through three defined motions, each with its own criteria:
| Motion | What it is | How to qualify | Applies to |
| New-to-Offer | Qualifying Product is new to the customer’s tenant | New within the lookback window; meets minimum seat threshold | All new seats |
| Seat Expansion | Significant seats increase on a qualifying product they already have | New seats meet the expansion multiplier and minimum threshold | Mid-term: Add new seats on a new subscription · Renewal: All seats |
| Strategic SKU Mix | A higher ratio of strategic SKU seats to the base product | Strategic-to-base seat ratio crosses the threshold | Mid-term: Add new seats on a new subscription · Renewal: All seats |
Important Notes
- Applies only to CSP licence-based offers on selected NCE Commercial products. Consumption-based services, perpetual software licences, and NFP/EDU SKUs are excluded.
- Eligibility is assessed at the customer-tenant level across all channels.
- Confirm eligibility with your Account Manager before transacting, as it cannot be changed after the sale.
- This early overview is intended to support initial planning. We’ll share the full list of qualifying SKUs, earning rates, and additional details as they become available
Alongside Growth Margins, Microsoft is reducing partner margin on selected standalone products from October 2026. The direction is consistent — value in the older standalone base is shrinking, and the opportunity is in moving customers up.
Affected products include: Office 365 E1 & E3, OneDrive Extra Storage, SharePoint (standalone plans), Exchange Online, and Microsoft 365 Apps for Business & Enterprise.
Modern Work, Copilot & BizApps
Microsoft 365 Pricing & Packaging Update is now in effect
As previously announced, effective July 1, 2026, Microsoft has increased prices of most Microsoft 365 / Office 365 suites and various standalone components. Pricelist previews are available in Partner Centre. Alongside the price update, Microsoft is introducing additional security, storage, and AI capabilities, unlocking more value within Microsoft 365 suites.
No price changes to: M365 Business Premium, M365 E7, O365 E1, O365 F3, Teams Enterprise (incl. 3 Year), Copilot Business
Feature Additions:
- For SKUs above, plus M365 F1/F3, O365 E5: Copilot Chat enhancements and Copilot Chat Analytics
- M365 Business Basic/Standard/Premium: +50GB email, URL time-of-click protection
- M365 E3: Intune Remote Help, Intune Advanced Analytics, Intune P2, Defender for O365 P1
- M365 E5: All E3 additions + Intune Endpoint Privilege Management, Intune Enterprise Application Management, Microsoft Cloud PKI, Copilot for Security
- O365 E1: URL time-of-click protection
- O365 E3: Defender for O365 P1
New: 3-Year M365 Copilot Promotion (15% off, 300+ licences)
Customers can save 15% on three-year commitments for 300+ M365 Copilot licences. This offer strengthens the enterprise Copilot proposition and rewards multi-year commitments.
Action Required: Position this promo with mid-market and enterprise customers evaluating Copilot at scale.
Copilot Cowork Now Generally Available
Copilot Cowork, an agentic system that plans, executes, and delivers real work, is now generally available worldwide. Users define the task, and Cowork executes it from start to finish, returning a completed deliverable rather than a draft or recommendation.
Powered by Work IQ, Cowork grounds every task in the systems that a business already runs on.
Cowork is enabled via usage-based billing. Administrators can use the new Cost Management Dashboard in the M365 admin centre to monitor credit usage, manage budgets, and control spend.
Cowork now uses OpenAI GPT-5.5 Thinking for tailored work and can choose Anthropic models for visual work.
New plugins include Enosix, Harvey, LSEG, Miro, monday.com, Moodys, Morningstar, S&P Global Energy, TeamsMaestro.
Retirement of Standalone Sharepoint Online & OneDrive for Business Plans
Microsoft is retiring standalone SharePoint Online (Plan 1 & Plan 2) and OneDrive for Business (Plan 1 & Plan 2) SKUs. This change reflects low customer demand, unintended usage patterns, and higher operational costs.
| Milestone | Timeline |
| Retirement Announcement | Late January 2026 |
| End of Sale | June 2026 (no new tenants after May 31, 2026) |
| End of Life | January 2027 (no more renewals) |
| End of Service | December 2029 (plans fully retired) |
Recommended Actions: Proactively identify impacted customers. Guide them to appropriate Microsoft 365 suites (Business Basic/Standard/Premium, E1/E3/E5), capacity packs, or pay-as-you-go storage options.
Copilot Monetization for SMBs — Blog Series
Learn how to capture the SMB Copilot partner opportunity in this three-part blog series. Start with Copilot Chat to build familiarity, then expand with Microsoft 365 Copilot Business to embed AI into everyday work and convert renewal momentum into growth. Finally, optimise, extend, and monetise through agents and managed services. It’s a practical playbook for moving SMB customers from AI curiosity to sustained business impact — and for building a durable Copilot monetisation motion that grows with your customers.
Cloud & AI (Azure Infrastructure)
FY27 Azure CSP Incentives – Cloud & AI Platform transactional economics
FY27, running from 1 July 2026 to 30 June 2027, marks a major shift in partner economics from volume-based rebates to growth, strategic workloads, and AI-led Frontier investments
Azure CSP consumption rates are unchanged (3% pay-as-you-go and reservation/savings plan), but the old single 7.5% Growth Accelerator is replaced by a three-tier growth model that rewards strategic Data & AI workloads:
| CSP lever | FY26 (current) | FY27 | Change |
| PAYG consumption | 3.00% | 3.00% | No change |
| Reservations & savings plans | 3.00% | 3.00% | No change |
| Growth Tier 3: SQL, Cosmos DB, PostgreSQL/MySQL, Fabric | 7.50% (single) | 12.00% | New top tier |
| Growth Tier 2: Foundry, GitHub, Defender, Sentinel, Copilot Studio | 7.50% (single) | 10.00% | Higher
|
| Growth Tier 1: all other workloads | 7.50% (single) | 7.00% | -0.5 pt |
FY27 Azure CSP Incentives – Azure Accelerate
Microsoft has renamed and unified the FY26 Azure Accelerate program under the new Frontier Accelerate for Azure banner, with a stronger focus on AI, Data, Fabric, Foundry, GitHub, Sovereignty, Security, and competitive migrations.
Key Changes at a Glance
- Program renamed: FY26 Azure Accelerate becomes FY27 Frontier Accelerate for Azure.
- Broader workload focus: Coverage expands from Migration, Data, and AI Apps to Databases, Agentic AI Platform, Digital Sovereignty, Sentinel, Foundry, Fabric, GitHub, and Copilot workloads.
- Stronger AI incentives: Dedicated Agentic AI Platform incentives now apply to GitHub, Fabric, and Foundry, with funding increasing by up to 1.75x.
- New data incentives: Database-specific engagements are added, including conversion bonuses for AWS and Google database migrations.
- Simplified structure: Cloud Accelerate Factory is integrated into Partner Incentives, with no funding impact for Specialized Partners.
- Expanded eligibility: Access broadens beyond specializations to include Solutions Partner Designations and Frontier Distributor Designation paths.
- Competitive migration focus: FY27 adds a new Database Conversion Bonus for AWS and Google workloads.
Bottom Line: FY27 Frontier Accelerate for Azure increases investment in AI, Data, AWS/GCP migrations, and broader SPD/FDD eligibility. Partners focused on Fabric, Foundry, GitHub, Databases, Security, and AI transformation are best placed to benefit.
FY27 CSP incentives eligibility
- No changes from FY26 (Indirect reseller )
- CSP indirect reseller authorization
- Solutions Partner designation or a minimum of 25 capability points, specific to the solution area* incentive
- $25,000 TTM revenue at the Partner Location Account (PLA) ID
Get the FY27 Frontier Transformation Playbooks
Copilot Cowork opens a new path for partner-led agentic AI via Azure
Copilot Cowork is now generally available worldwide, giving customers a way to move from AI that assists work to AI that executes complex, long-running, multi-tool tasks. Built on the Microsoft 365 Copilot foundation, it brings together organizational context, enterprise-grade security and compliance, multi-model capabilities, and usage-based billing through Copilot Credits. We are seeing strong momentum with Copilot Cowork when positioned through Azure Pay As You Go (PAYG) not just for customer flexibility, but also for partner margin optimization.
- Azure PAYG is the preferred route for Copilot Cowork
- Position Cowork value to your customers
- Unlock the highest partner margin and Core and new growth incentives.
GitHub Copilot is moving to usage-based billing starting June 1, 2026
Instead of counting premium requests, every Copilot plan will include a monthly allotment of GitHub AI Credits, with the option for paid plans to purchase additional usage. Usage will be calculated based on token consumption, including input, output, and cached tokens, using the listed API rates for each model. This change aligns Copilot pricing with actual usage and is an important step toward a sustainable, reliable Copilot business and experience for all users. Learn more and access partner resources.
Learn more and access partner resources.
Apply for access to preview Microsoft Azure HorizonDB
A fully managed Postgres-compatible database service designed to meet the needs of modern enterprise workloads, Azure HorizonDB is designed to support applications across the entire workload spectrum from the first line of code in a new app to the migration of large-scale, mission-critical solutions. Built for enterprises, Azure HorizonDB introduces new levels of performance and scalability to PostgreSQL. Apply now to get hands-on experience with this database experience during the preview period.
Selected Microsoft Azure Virtual Machine Reserved Instances (RIs) ending
As of July 1, 2026, purchases and renewals will no longer be available for Azure Reserved Virtual Machines Instances (RIs) for select VM series. One-year RIs will no longer be available for the Av2, Amv2, Bv1, D, Ds, Dv2, Dsv2, F, Fs, Fsv2, G, Gs, Ls, and Lsv2 VM series. One-year and three-year RIs will no longer be available for the Dv3, Dsv3, Ev3, and Esv3 VM series. We strongly recommend reviewing your current RI orders and taking necessary action to prevent lapse in commitment savings.
Review the documentation for more information on how to prepare.
Check out new Microsoft Azure go-to-market assets for SMBs
Partners are uniquely positioned to turn adoption and cloud investments into tangible impact for small and medium-sized businesses (SMBs) with Microsoft Azure. Our robust collection of Azure SMB go-to-market assets are designed so you can quickly build pipeline, grow your SMB customer base, and expand existing workloads while leading secure cloud transformations at scale.
Standardized pricing for Extended Security Updates is now available
The new pricing model impacts SQL Server and Windows products including Windows 10 Enterprise 2016 LTSB and Windows Server, offering customers consistent pricing across clouds and purchasing channels.
Read the blog for more details, and connect with SQL Server and Azure SQL experts in the SQL partner community.
Microsoft has launched new Cloud Adoption Framework guidance for data
Help your customers prepare for an AI-first future by getting their data estates organized for success and ensuring you are providing services that align with Microsoft best practices.
Microsoft Build 2026: Turning innovation into partner growth
Microsoft Build 2026 was more than a developer moment. It was a partner growth moment. In a recent blog, Stephen Boyle shares how announcements across Microsoft IQ, Work IQ APIs, Foundry IQ, Agent 365 SDK, Azure HorizonDB, Azure Linux, Microsoft Foundry, Microsoft Marketplace, and Microsoft for Startups create opportunities for partners to turn platform innovation into customer impact.
Read the blog to see how partners can lead customer conversations across agent strategy, app modernization, data readiness, secure AI, Marketplace growth, managed services, and AI-ready infrastructure. Use the guidance to map Build announcements to your offers, refresh technical and sales readiness, optimize Marketplace listings, and prepare for FY27 growth.
Microsoft Agent Factory
In parallel, Microsoft Agent Factory enables movement from concept to production by bringing Copilot Studio, Microsoft Foundry, GitHub Copilot, and Fabric into a single, pre-purchase AI plan with built-in customer skilling. Partners can layer on advisory, implementation, managed services, and Center of Excellence offerings to deliver differentiated, end-to-end solutions backed by Microsoft IQ.
Turn infrastructure disruption into a growth opportunity for your hosting business
Hosting and hybrid cloud partners are facing a major market shift as virtualization licensing changes, rising infrastructure costs, and evolving customer expectations reshape traditional hosting economics. In this new blog, Alex Zagury, CVP of Global Channel Sales shares why this moment is also a growth opportunity for partners who act early, protect customer relationships, and evolve from capacity-led offerings to higher-value managed services.
Learn how Microsoft Adaptive Cloud, including Azure Arc, Azure Local, and Azure native services, can empower partners to give customers greater choice, consistency, and continuity across on-premises, edge, and cloud environments. Explore practical steps hosting partners can take now to modernize their platforms, expand recurring revenue, and build a more resilient, AI-ready business.
Accelerate Microsoft Defender for Cloud adoption with partner investments
Security is a baseline expectation for customers, which is why we’ve put together opportunities for you to deliver a built-in security approach and drive growth. Complete the Cloud Security Envisioning Workshop to sharpen your approach to engaging customers in security discussions earlier in their cloud journey. We also encourage you to attain the Cloud Security specialization to unlock continued access to the Envisioning Workshop—along with other targeted benefits—to strengthen your capabilities leading secure cloud transformation.
Promotions and Offers
New Windows 365 CSP Promotions — Save up to 25%
Announced July 1, 2026.
New Windows 365 promotions for CSP partners
Save up to 25% for both new and existing subscribers. This makes Cloud PC significantly more accessible for SMB and mid-market customers.
Action Required: Re-engage customers previously priced out of Cloud PC. Combine with the recent 20% permanent Windows 365 Business price reduction for maximum value.
Sentinel 50-GB Tier Promo Extended
Announced June 26, 2026.
Microsoft has extended the Sentinel 50-GB commitment tier promotion (up to 32% off PAYG) providing a lower-risk entry point for cloud SIEM to SMB and mid-market customers.
New: 3-Year M365 Copilot Promo (15% off, 300+ licences)
Save 15% on three-year M365 Copilot commitments for 300+ licences.
Position with enterprise customers looking to standardise Copilot.
Active CSP Promotions – Key Callouts.
| PROMOTION | DISCOUNT | VALIDITY | NOTES |
| M365 Business Standard/Premium with Copilot | Bundle pricing | Permanent July 1 | 1–300 seats, annual |
| M365 Business Basic + Copilot Business | 25% off ($21) | Through Dec 31, 2026 | 1–300 seats, annual |
| M365 Copilot Business standalone | 15% off ($18) | Through Dec 31, 2026 | 1–300 seats, annual |
| M365 Copilot 3-year commitment | 15% | FY27 | 300+ licences |
| Windows 365 CSP promotions | Up to 25% | FY27 | New and existing subscribers |
| Sentinel 50-GB tier | Up to 32% | Extended | All commercial customers |
| M365 E7 — Annual term | 10%/15% | Through Dec 31, 2026 | 10+ / 100+ seats |
| Purview Suite for Copilot | 50% | Check for extension | M365 Copilot customers |
| D365 Contact Centre | 40% | FY27 | Commercial, no seat min |
Action Required: Consult the Global Promo Readiness guide in Partner Centre for full terms and eligibility.
Crayon Promotions
Secure AI Growth Challenge 2026
Crayon is offering tiered cashback for eligible Microsoft Security and Copilot-related CSP deals, including Business Premium, Microsoft 365 Copilot Business, E3/E5, Defender, and Purview. Rewards are based on qualifying seat thresholds, with the campaign running from 16 June to 15 December 2026.
Partners should register eligible deals before provisioning to secure cashback, subject to validation and availability of the campaign pool.
Certs4Experts – get Microsoft certified for free
By popular demand, the Crayon Certs4Xperts program is back!
Starting January 1, 2026, Certs4Xperts is a proven way to take your in-house Microsoft skills certifications from Fundamentals to Intermediate, Advanced and Technical – for free.
Choose your certification path to complement technical roles and requirements. Take the courses, sit the exams, and earn globally recognised industry certifications – courtesy of Crayon.
Participating Partners who successfully pass eligible Microsoft certification exams within the program period will have their full exam fee reimbursed.
Training, Events & Bootcamps
Microsoft delivered multiple enablement initiatives across AI, Security, Azure, and BizApps during June–July 2026.
References:
Important Cloud & AI upcoming Events & Webinars
CSP Direct Bill/Indirect Reseller – Partner Investments Community Call
July Office Hours 2026
Thursday, July 23, 2026, 8:00 – 9:00 PM (GMT-07:00)
Register now
SDC – Partner Investments Community Call – July 2026 (ASIA)
Thursday, July 29, 2026, 6:00 – 7:00 PM (GMT-07:00)
Register now
Cloud and AI Platforms – Partner Investments Community Call
Tuesday, 4 August 2026, 7:00 – 8:00 pm (GMT-07:00)
Register now
Microsoft Partner Skilling & Events
| Event / Training | Format | Date | Details |
| MCAPS Start for Partners | Virtual (free) | Jul 22, 2026 | FY27 priorities from Microsoft leadership |
| FY27 GTM Kickoff | Virtual (free) | Jul 28, 2026 | AI BizApps, Cloud & AI, Security tracks |
| Live AMA: Copilot Cowork & Credits | Virtual | Jul 21, 2026 | Cowork GA announcement |
| M365 Copilot Roadmap Session | Virtual | Ongoing | What’s New & Available |
| AB-100 Agentic AI Solutions Architect | Certification | Available now | Replaces MB-335, MB-700, PL-500, PL-600 |
| AB-250 D365 Contact Center AI Engineer | Certification | GA July 2026 | Replaces MB-240 |
| AI-103 Azure AI Apps and Agents | Certification | Available now | Replaces AI-102 |
| AI-300 MLOps Engineer Associate | Certification | Available now | Replaces DP-100 |
| AI-900 Copilot & Agent Admin Fundamentals | Certification | Available now | Replaces MS-900 |
| FabCon + SQLCon APAC — Sydney | In-person | Apr 6–9, 2027 | aka.ms/FabConAPAC |
| AZ-500 → SC-500 Transition | Certification | Active | Security skilling |
Recommended Actions: Register at the Partner Skilling Catalogue. Complete retiring certifications before their deadlines to receive 1-year credit.
June 2026
TL:DR PRIORITY UPDATES.
MCAPS START FOR PARTNERS IN JULY (FY27 KICKOFF)
Save the date for July 22, 2026. Microsoft’s annual MCAPS (Microsoft Customer and Partner Solutions) event will share FY27 priorities, investment focus, and go to market direction. A follow on FY27 GTM Kickoff on July 28th will provide deeper solution area tracks for CSP partners.
Register for the Partner GTM KIckoff here.
MICROSOFT 365 PRICING AND PACKAGING UPDATE
Effective July 1, 2026, Microsoft is updating global pricing across most M365 SKUs. Price increases range from 5% to 43%.
NEW MICROSOFT 365 BUSINESS WITH COPILOT SKUS
Starting July 1, 2026, Microsoft 365 Business Standard with Copilot and Business Premium with Copilot become permanent durable SKUs instead of promotional bundles. This is a major simplification for SMB selling.
Read our latest blog for more information.
MICROSOFT 365 ‘COPILOT FOR ALL’ EXPANDED PROMOTIONS
Eligibility for the 30% and 40% off Copilot for All promotions was expanded in April 2026 with simplified requirements
Visit our APAC Vendor Offers post for more detail (scroll to row 5)
OPENAI GPT 5.5 IN MICROSOFT FOUNDRY – NOW GA
GPT-5.5 is now generally available in Microsoft Foundry bringing deeper long-context reasoning, more reliable agentic execution, and greater token efficiency for enterprise AI workloads.
MICROSOFT PARTNER BENEFITS: MODERNISED REDEMPTION EXPERIENCE AND KEY CHANGES
Microsoft is modernising how you redeem and manage partner benefits in Partner Center to make it more secure, and easier to manage at scale. Your benefits entitlement is NOT changing. Only how you activate them.
Updates include:
- Keyless Redemption for Seat-Based Benefits: No more copying/pasting 5×5 product keys. Redemption now flows from Partner Center → M365 Admin Centre → $0 checkout. Licenses provision automatically.
- Azure Credits Direct Deposit to Billing Profile: No more user assignment or activation links. Credits deposit directly into your MCA Billing Profile in Partner Center. Existing and new subscriptions can use them immediately.
- Expiration Aligned to Offer Anniversary: All benefits now expire on your offer purchase anniversary date, not when you redeemed them. One date to track, simpler renewal planning.
Timing and rollout of updates
The modernised cloud benefits experience is now live for partner benefits packages in Australia and Canada, with additional regions and offers including Azure benefits rolling out through July 2026. Partner Center admins in each region will receive a notification when their modernisation experience becomes available.
CSP Program Updates
SAVE THESE DATES IN JULY!
MCAPS START – JULY 22ND
MCAPS Start for Partners (Microsoft Customer and Partner Solutions) takes place on 22 July 2026. This is a no‑cost, digital‑only event designed to give partners early clarity on FY27 priorities, investment focus, and go‑to‑market direction. The event will feature keynotes defining FY27 priorities and strategic shifts, breakouts aligned to AI, cloud, and security, and practical direction on the Microsoft AI Cloud Partner Program, Marketplace motions, incentives, and skilling with explicit next steps.
Register here: MCAPS Start for Partners
FY27 PARTNER KICKOFF – JULY 28TH
One week later, on 28 July 2026, the Microsoft Partner FY27 GTM Kickoff Event provides a deeper tactical layer across three solution‑area tracks: Microsoft AI Business Solutions (with a dedicated CSP track), Microsoft Commercial Cloud and AI, and Microsoft Security.
The GTM Kickoff is described as a “double‑click on priorities shared at MCAPS Start for Partners,” focused on offers, investments, and solution play updates to help partners rapidly act in FY27.
Register here: Microsoft Partner GTM Kickoff Event
Updated Microsoft Partner Agreement (MPA) & Program Guide.
Effective December 1, 2026
Microsoft has published updated versions of the Microsoft Partner Agreement (MPA) and the CSP Program Guide, both taking effect December 1, 2026.
For all partners except CSP direct bill and distributor partners in France, the updated MPA takes effect automatically. No action, signature, or acknowledgment is required. However, partners can also accept the updated MPA in Partner Center prior to that date (starting during June 2026), in which case it will take effect at the time of explicit acceptance.
The updated terms reflect current business practices and reinforce Microsoft’s commitments to privacy, security, compliance, and transparency.
Partners should review the updated documents now to understand any changes that affect their operations.
Partner University Retires June 15, 2026.
Partner University was retired on June 15, 2026. No new user linkings are accepted. Existing linkings will earn skilling score until June 2027.
Microsoft is replacing several assessment-based skilling paths with formal certifications, including the new Copilot and Agent Administration Fundamentals certification replacing MS-900 for Modern Work designation intermediate skilling.
Recommended Actions: Ensure your team has completed any planned Partner University linkings. Transition to the new certification-based skilling paths.
Extended Service Terms (EST) Enforcement Now Live.
As a reminder, Microsoft’s Extended Service Terms enforcement commenced May 4, 2026.
The previous free grace period for non-renewed CSP subscriptions has been removed. Subscriptions reaching end-of-term without renewal or cancellation now automatically transition to a paid, month-to-month Extended Service Term.
Recommended Actions: Review all upcoming subscription expirations. Ensure auto-renew settings are configured correctly and discuss renewal plans with customers before end-of-term dates.
Other Program Updates.
- Microsoft Publisher Agreement v8.0 – Updated terms take effect July 1, 2026 automatically. No partner action required.
- Partner Marketing Centre Pro: AI-powered marketing hub now available to eligible partners with benefits packages, Solutions Partner designations, or ISV Success enrollment
- Co-Sell Referral Quality Updates: Inbound referrals now automatically checked for completeness. Ensure every referral includes solution area, deal value, close date, customer need, and contact info.
- Resale Offers Expand to New Zealand: Microsoft Marketplace now supports resale-enabled offers in NZ, enabling partner-led sales without relying on software companies to build bespoke private offers.
Action Required
Partner Communications: Ensure your Partner Centre role-based accounts (Global Admin, Billing Admin) are properly configured to receive email communications to avoid missing business-critical notifications.
Modern Work, Copilot & BizApps
Microsoft 365 Pricing & Packaging Update.
Effective July 1, 2026
From the beginning of next month, Microsoft is updating global pricing across most M365 SKUs. Price increases range from 5% to 43%. Additionally, Microsoft is introducing additional security, storage, and AI capabilities, unlocking more value for customers within the Microsoft 365 suites.
Feature additions include:
- M365 Business Basic/Standard/Premium: +50GB email storage, URL time-of-click protection, Copilot Chat enhancements and Copilot Chat Analytics
- M365 E3: Intune Remote Help, Intune Advanced Analytics, Intune Plan 2, Defender for Office 365 P1, Copilot Chat enhancements and Copilot Chat Analytics
- M365 E5: All E3 additions + Intune EPM, Enterprise App Management, Cloud PKI, Security Copilot, Copilot Chat enhancements and Copilot Chat Analytics
Recommended Actions: Audit renewals, bring forward eligible renewals, lead with bundled value, and review SKU options.
New Copilot App Design.
Microsoft unveiled a redesigned Copilot app and in-app experience across Microsoft 365. The prompt line is now a task-aware workspace that surfaces relevant tools and controls. A single, flexible entry point for Copilot across M365 apps suggests relevant actions in the flow of work.
Microsoft 365 E7 & Agent 365.
Now Generally Available
Microsoft 365 E7 (the “Frontier Suite”) and Agent 365 reached GA on May 1, 2026.
E7 bundles M365 E5 + Copilot + Entra Suite + Agent 365 at AUD $148.20*.
Agent 365 standalone is AUD $22.40*.
*Per user per month price on annual commitment paid upfront
For Microsoft 365 E7: launch promotions of 10% off (10+ seats) and 15% off (100+ seats) for annual terms, and 15% off triennial terms, are available through December 31, 2026.
For Agent 365: effective June 1, Microsoft introduced new license prerequisites for new Agent 365 purchases as follows:
- Enterprise customers must have Microsoft 365 E5
- Frontline worker (FLW) users must have Microsoft Defender and Purview (F5 level)
- SMB customers must have Microsoft 365 Business Premium.
Recommended Actions
- Target existing M365 E5 customers as the most natural upgrade candidates.
- Review the Global Promo Readiness guide for E7 promotion terms and refer the Agent 365 FAQ for more information.
Retirement of standalone Sharepoint Online and OneDrive for Business Plans.
As announced in January 2026, Microsoft is retiring the standalone SharePoint Online Plan 1 and Plan 2 and OneDrive for Business Plan 1 and Plan 2 SKUs with End of Sale from June 2026 onwards.
Recommended action: Review customer tenants, communicate key dates and position Microsoft 365 suite or storage alternative as appropriate.
Key timelines:
- End of sale: June 2026 (no new tenants/customers after May 31, 2026; renewals for existing customers only).
- End of life: January 2027 (no renewals; existing contracts continue until expiration).
- End of service: December 2029 (all standalone plans fully retired; customers must transition to Microsoft 365 suites, capacity packs, or pay-as-you-go storage options)
Microsoft Teams Updates.
Key Teams updates from the past two months include:
- Copilot Call Delegation: Copilot answers incoming Teams calls, gathers context, and offers to book follow-ups
- Targeted messages for agents: Bots/agents can send private, temporary updates to specific users in chats/channels/meetings
- Simplified Teams app bar: Streamlined navigation
- Video recap: AI-generated narrated video highlights from recorded meetings
- AI Interpreter Agent on Teams Phone: Real-time multilingual interpretation on calls
- Multiple phone number assignment: Up to 10 numbers per user
- Sensitivity label inheritance: for meeting recordings and Loop notes
Cloud and AI: Azure Infrastructure
Azure Linux now in Public Preview.
Effective June 2, 2026
Microsoft launched Azure Linux, a Microsoft-built, cloud-optimised Linux distribution designed specifically for Azure. It offers a secure-by-default architecture, Microsoft-managed supply chain, and optimised performance for VMs, containers, and cloud-native/AI workloads. Partners can lower customer TCO by eliminating OS licensing overhead while maintaining enterprise-grade support.
OpenAI GPT-5.5 in Microsoft Foundry now GA.
GPT-5.5 is now generally available in Microsoft Foundry (formerly Azure OpenAI Service), bringing deeper long-context reasoning, more reliable agentic execution, and greater token efficiency for enterprise AI workloads. GPT-5.5 is also integrated into Microsoft 365 Copilot Chat.
Microsoft Scout – Always-On Personal AI Agent.
The first agent in a new category called “Autopilots” always-on autonomous agents with their own identity. Desktop app for Win 11+ / macOS 12+, available via Frontier program preview.
Azure Reserved VM Instances: select series retired July 1.
Starting July 1, 2026, purchases and renewals are no longer available for Reserved VM Instances on legacy VM series (Av2, Bv1, D/Ds, Dv2/Dsv2, F/Fs, G/Gs, Ls/Lsv2 for 1-year; Dv3/Dsv3, Ev3/Esv3 for 1-year and 3-year).
Recommended Actions: Identify customers with RIs on affected VM series and transition to newer VM families before July 1.
Other Azure Updates.
- Azure Accelerate for Databases: Funded migration assessment, up to 35% savings vs PAYG, zero-cost delivery support for database modernisation
- Azure Blob Storage Smart Tier: GA; fully managed automated tiering to optimise storage costs
- Bulk VM Restore (Preview): Azure Backup now supports restoring up to 100 VMs in a single operation
- Windows 365 Business: 20% Price Decrease (effective May 1, 2026) — Re-engage SMB cloud desktop prospects
- SQL Server 2016 End of Extended Support: July 14, 2026. Free Azure ESUs ending; use Cloud Accelerate Factory for migration
Microsoft Build 2026 I Cloud & AI Platform.
Microsoft Build 2026 wrapped up last week in San Francisco with 100+ announcements and the message was clear: we’ve entered the age of AI agents.
Azure: New Cobalt 200 & Blackwell VMs, HorizonDB (AI-ready Postgres), and agentic infrastructure updates
AI: Seven new MAI first-party models, Microsoft Foundry GA, Hosted Agents, and the new Copilot Credits consumption model
Fabric: GPU-accelerated Data Warehouse (up to 7x faster), Fabric IQ Ontology, and the new Rayfin SDK
GitHub: Agent-native Copilot desktop app, Project Polaris replacing GPT-4 Turbo, and Multi-Agent VS Code
Streamline your campaign execution with Partner Marketing Center Pro
Partner Marketing Center Pro is the unified, AI-powered marketing hub designed to streamline end-to-end planning, activation, execution, and performance tracking.
It empowers partners to reduce manual production work, support more consistent demand generation, and move from campaign idea to customer engagement faster.
Promotions and Offers
Microsoft 365 Copilot Promotions.
Microsoft has launched a new promotion on June 1, 2026 offering 15% off Copilot 3-Year subscriptions for a minimum of 300 licenses.
For SMBs, effective July 1, 2026, a new 25% promotional offer goes live on Microsoft 365 Business Basic plus Microsoft 365 Copilot Business.
The current 15% promotional offer on Microsoft 365 Copilot Business has also been extended through December 31, 2026.
Eligibility for the 30% and 40% off Copilot for All promotions was expanded in April 2026 with simplified requirements.
See the Copilot offer FAQs for more details.
Offer |
Discount |
Min. Licences |
Validity |
Use Case |
| Getting Started (New-to-Offer) M365 Copilot | 15% | 10+ | June 30, 2026 | Initial Copilot deployments |
| Scale Up | 20% | 100+ | June 30, 2026 | Expand to priority functions |
| Copilot for All | 30% | 300+ | June 30, 2026 | Standardise across teams |
| Copilot for All | 40% | 1,000+ | June 30, 2026 | Org-wide rollout at scale |
| M365 Copilot — 3-year term
|
15% | 300+ | September 30, 2026 | Long-term strategic investment |
| M365 Copilot Business | 15% | 1+ | December 31, 2026 | Add Copilot mid-term to M365 |
| M365 Business Basic + Copilot Business
(Live from July 1st, 2026) |
25% | 1+ | December 31, 2026 | Get started with AI efficiencies |
Additional Active CSP Promotions.
Promotion |
Discount |
Validity |
Notes |
| M365 E3/E5, 3-year terms | 10% | Through Jun 30, 2026 | New-to-offer, 100+ seats |
| M365 E5, 1-year term | 15% | Through Jun 30, 2026 | New-to-E5 |
| M365 E7, 1-year term | 10%/15% | Through Dec 31, 2026 | 10+ / 100+ seats |
| M365 E7, 3-year term | 15% | Through Dec 31, 2026 | 300+seats |
| Targeted M365 E3 | 20% | Through Jun 30, 2026 | 250+ seats |
| Microsoft Sentinel 50GB tier | Up to 32% | Through Jun 30, 2026 | All commercial customers |
| Purview Suite for Business Premium, 1 year term | 50% | Through Dec 31, 2026 | Copilot Business attach, 10+ seats |
| Purview Suite for Copilot (Enterprise) | 50% | Through June 30, 2026 | M365 Copilot customers |
| Defender & Purview Suites | 10% | Through June 30, 2026 | 3-year, first-time purchase, 100+ seats |
| D365 Contact Centre | 40% | Through Jun 30, 2026 | Commercial, no seat min |
| Bridge to Cloud 3 (D365) | 30% | Through Dec 31, 2027 | On-prem → cloud (3-yr) |
Trainings, Events & Bootcamps
.
Microsoft Partner Skilling & Events.
Recommended Actions: Register at the Partner Skilling Catalogue and the Skilling Hub.
| Event / Training | Format | Date | Details |
| MCAPS Start for Partners | Virtual (free) | Jul 22, 2026 | FY27 priorities & investment areas |
| FY27 GTM Kickoff | Virtual (free) | Jul 28, 2026 | Solution-area tracks: AI BizApps, Cloud & AI, Security |
| Frontier Transformation Engineer Summit | Virtual | Jun 9–10, 2026 | Skilling strategy → partner execution |
| Build What’s Next — Partner Skilling | Virtual | May 27 – Jun 11, 2026 | Latest skilling investments |
| Azure Local & M365 Local Workshop — Sydney | In-person (L300) | Jun 2–4, 2026 AEST | Sovereign private cloud hands-on |
| Fabric Partner Sales Bootcamp | Virtual | May 27, 2026 | Strengthen Fabric pitch, co-sell |
| Fabric Certification Accelerator | Virtual ILT | Ongoing | DP-600/DP-700, free exam vouchers |
| FabCon + SQLCon APAC — Sydney | In-person | Apr 6–9, 2027 | Register |
| LevelUp Certification Prep | On-demand | Ongoing | Free exam voucher with 80%+ practice test |
| Modernize Your SOC with Sentinel | Self-paced | Ongoing | Security analytics & threat hunting |
| AZ-500 → SC-500 Transition | Certification | Active | Keep security skilling on track |
Crayon Promotions: Key Call outs.
Earn Additional Rebates with Business Premium Attach
Partners can now earn a per-seat rebate when they attach an approved Microsoft add-on SKU to existing Business Premium customers, or when they purchase a Business Premium Copilot bundle.
Crayon’s Business Premium Attach Incentive is designed to help you unlock more value from your existing customer base, without chasing new logos or rebuilding your sales motion.
Cert4Experts: Get Microsoft Certified for Free
By popular demand, the Crayon Certs4Xperts program is back!
Starting January 1, 2026, Certs4Xperts is a proven way to take your in-house Microsoft skills certifications from Fundamentals to Intermediate, Advanced and Technical – for free.
Choose your certification path to complement technical roles and requirements. Take the courses, sit the exams, and earn globally recognised industry certifications – courtesy of Crayon.
Build knowledge, build in-house skill sets and build your competitive advantage.
The participating Partners who successfully pass eligible Microsoft certification exams within the program period will have their full exam fee reimbursed.
Net-New Seat Challenge — Win $10,000 MDF
Crayon is running a H1 2026 partner incentive offering a $10,000 Marketing Development Fund (MDF) package to the top 3 ANZ partners who add the most net-new Microsoft 365 or Dynamics 365 seats by end of H1 2026.
There is still time to qualify!
EA-to-CSP & Azure PAYG-to-CSP Transition Services
- EA-to-CSP Transition: Billing-only transition completed in 24–48 hours, no downtime
- Azure PAYG-to-CSP Transition: Partner-friendly, no technical migration required
Contact your Crayon Account Manager to learn more.
