Partner Licensing Updates
Partner Licensing Updates
Microsoft Product Highlights and Updates
Unified Microsoft Copilot app — new URL, broad rollout mid-September
Worth an admin-action callout. From August 18, 2026, Microsoft began updating the Copilot web, desktop, and mobile experiences to help users distinguish work from personal accounts — clearer account indicators, a simplified app name and icon, and a move of the web app URL from m365.cloud.microsoft to copilot.cloud.microsoft, with automatic redirection unless the new URL is blocked.
An early preview of the Windows and Mac desktop experience landed August 18, with broad deployment beginning mid-September.
Action for customers: confirm copilot.cloud.microsoft isn't blocked by network, proxy, firewall, or access policies, and add *.cloud.microsoft to allow lists. Schedule time with your PDM to review.
Build apps by prompt in Copilot Cowork (September 10)
Microsoft announced full-stack business app building through conversation in Copilot Cowork and Copilot Studio — described as creating full-stack business apps through conversation, grounded in your data.
Users describe the app, Cowork generates a first version to refine and test, apps connect to org data through approved connectors under existing governance, and admins will be able to publish finished apps org-wide via the Microsoft 365 admin center.
The experience is in preview for Frontier program customers with an eligible Microsoft 365 Copilot license.
Schedule time with your PDM to review.
Microsoft Price Updates
5% cost-of-capital uplift on monthly-billed annual CSP software — effective October 1, 2026
This one needs proactive customer comms. Starting October 1, 2026, Microsoft applies a 5% cost of capital uplift for CSP software subscriptions (such as SQL Server, Windows Server, Client Access Licenses, and System Center) with annual-term commitments billed monthly, aligning pricing treatment across sales channels while preserving monthly billing flexibility.
There is no change to annual billing or month-to-month subscriptions, and for existing annual-term subscriptions billed monthly the uplift takes effect at renewal on or after October 1, 2026.
Note that an earlier Microsoft communication carried an incorrect effective date — October 1, 2026 is the confirmed one.
No Partner Center or system changes are required, but any customer renewing on or after that date should hear it from you first. Schedule time with your PDM to review.
Growth margins arrive October 1 — new economics on M365 growth
From October 1, 2026, growth margins give eligible partners incremental margin on qualifying Microsoft 365 growth opportunities, built on partner feedback to allow more flexibility to structure deals, compete for new business, reward reseller performance, and reinvest in capabilities.
Technical guidance is available for the related API changes affecting data export and billing automation.
Pair this in the newsletter with a reminder that the July 1, 2026 Microsoft 365 list price increases now hit customers at their first renewal on or after that date.
Schedule time with your PDM to review.
Programs and Compliance
New badge names, retired certifications, and a sharper ASPX
Customer-facing Solutions Partner badges now align to the three commercial solution areas. Business Applications and Modern Work become Solutions Partner for AI Business Solutions, the three Azure paths become Solutions Partner for Cloud and AI Platforms, and Security keeps its name.
Attainment paths, capability score metrics, benefits, and specializations are unchanged, so the only work is refreshing customer-facing materials and pulling the updated names from Logo Builder.
Two certifications retired on August 31, 2026 as part of the shift toward AI-focused skilling. Azure Security Engineer Associate was replaced by Cloud and AI Security Engineer Associate, and Power Platform Functional Consultant Associate by Intelligent Applications Builder Associate.
Skilling completed before retirement stays valid for one year, which affects the Security and AI Business Solutions designations along with the Agentic Business Solutions, Azure Virtual Desktop, Cloud Security, and Infra and Database Migration specializations.
On the demand side, ASPX has shifted from a reporting tool to an action engine. It now surfaces free-to-paid signals including license requests and users reaching free usage limits, Microsoft 365 E7 targeting based on telemetry and licensing data, Cowork usage signals, and Frontier account readiness, with an API reduced from more than 80 endpoints to four so the data can feed your CRM.
Two calendar items close the section. The first Partnering for Success Together skilling session runs on September 23 on the Microsoft Partner Skilling Hub. And roadmap content for Dynamics 365, Power Platform, and Dataverse is moving to the AI at Work roadmap: there is no September 2026 Release Wave 2 announcement, Release Plans are being archived on Microsoft Learn, and Release Planner retires by November 15, 2026. Update any customer-facing references that point at the old resources.
| Date | What happens | Partner action |
| September 23, 2026 | First Partnering for Success Together monthly skilling session | Register on the Microsoft Partner Skilling Hub |
| September 30, 2026 | Microsoft 365 E3 and E5, Defender and Purview Suite promotions stop accepting new transactions | Transact before quarter end; verify promotion IDs at checkout |
| October 1, 2026 | 5 percent cost of capital uplift on annual-term CSP software billed monthly | Notify every customer renewing on or after this date |
| October 1, 2026 | Growth margins begin on qualifying Microsoft 365 growth opportunities | Review readiness resources and the API transition guidance |
| November 15, 2026 | Release Planner retires and Release Plans are archived | Repoint references to the AI at Work roadmap |
| December 31, 2026 | 50 percent off Purview Suite for Business Premium ends | Attach to Business Premium and Copilot deals before year end |
| March 31, 2027 | The Microsoft Sentinel experience in the Azure portal retires | Migrate secondary workspace content for managed customers |
Microsoft Promos
The September 30 promo cliff — lock quotes in now
A large block of CSP offers stops accepting new transactions at the end of this month. The bundled offer of 10% and 15% discounts on Microsoft 365 E3 and E5 (three-year and one-year terms) plus 10% off the Defender Suite and Purview Suite — for new-to-E5/Defender/Purview customers, with no offer stacking — is available only through September 30, 2026.
Microsoft 365 E7 and several Copilot term promos share the same deadline, and the deadline is the purchase date, not the subscription start.
Practical guidance for readers: a quote built in Q1 and signed in Q2 loses the discount, so validate promotion IDs and eligibility in Partner Center at checkout.
Schedule time with your PDM to review.
| Date | What happens | Who it affects |
| September 30, 2026 | Microsoft 365 E3 and E5, Defender Suite and Purview Suite CSP promotions stop accepting new transactions | Customers new to Microsoft 365 E5, Defender, or Purview |
| October 1, 2026 | 5 percent cost of capital uplift applies to annual-term CSP software subscriptions billed monthly | SQL Server, Windows Server, CAL, and System Center subscriptions |
| December 31, 2026 | 50 percent off Microsoft Purview Suite for Business Premium ends | Business Premium customers with Copilot or Copilot Business |
| Mid-September 2026 | Broad deployment of the updated Copilot desktop app; web moves to copilot.cloud.microsoft | All Copilot users; network and proxy administrators |
| September 2026 | Automatic onboarding to the unified Microsoft Sentinel experience in the Defender portal begins | Microsoft Sentinel customers not yet migrated |
| March 31, 2027 | The Microsoft Sentinel experience in the Azure portal retires | Microsoft Sentinel customers |
50% off Purview Suite for Business Premium — extended to year-end
Microsoft extended the 50% discount on the Microsoft Purview Suite for Business Premium to customers who license Business Premium together with Microsoft 365 Copilot Business or Microsoft 365 Copilot, available through December 31, 2026 as a limited-time offer.
Position it as the data security and governance layer that makes a Copilot rollout defensible — it's the strongest attach play in the SMB motion right now.
Schedule time with your PDM to review.
Updated benefits redemption process (August 3, 2026
Seat-based cloud and Azure benefits are now redeemed through a guided Partner Center experience completed as a $0 purchase, with Azure credits (including GitHub Enterprise and GitHub Copilot Enterprise) deposited directly onto a billing profile. Effective November 1, 2026, benefit expiration aligns to the date the offer was purchased rather than the date the benefit was first redeemed.
Expanded SMB track eligibility (July 31, 2026)
Microsoft removed the Azure consumed revenue threshold for SMB track eligibility across the Data & AI (Azure), Digital & App Innovation (Azure), and Infrastructure (Azure) solution paths. Partners with at least 80% of their customer base in SMC-C and SMB segments now qualify, creating a simpler path to the Solutions Partner for Cloud & AI Platforms designation.
Azure reservation exchange policy update (July 30, 2026)
Starting February 1, 2027, Azure reservation exchanges will no longer be available for services covered by savings plans, and impacted customers began receiving notifications on July 30. Identify affected customers now and guide them to the right mix of savings plans for flexibility and reservations for predictable workloads.
Specialization skilling updates (July 30, 2026)
Microsoft is retiring several certifications between June 30 and August 31, 2026, including AZ-204, MB-280, AZ-500, and PL-200, with AI-focused replacements such as AI-200, AB-210, SC-500, and AB-410. Certifications completed before the retirement date stay valid for one year. Review skilling progress in Partner Center against affected designations and specializations.
Coming soon: updated Partner Center vetting experience (July 28, 2026)
As of July 28, 2026, Microsoft is modernizing the verification experience in Partner Center for the Microsoft AI Cloud Partner Program and CSP, with a streamlined workflow and real-time inline validation that helps prevent submission errors. No immediate action is needed, but confirm your contact information and compliance admin details are current.
MDTI reaches end of life August 1, 2026 (July 23, 2026)
The standalone Microsoft Defender Threat Intelligence SKU was retired on August 1, 2026, and all MDTI subscriptions ended. Capabilities are now included at no extra cost in the Defender portal for any customer with Microsoft Defender or Microsoft Sentinel. CSP partners receive a credit memo for remaining subscription term and are responsible for passing that credit to end customers, so make sure billing teams are ready.
WSA validation updates (July 23, 2026)
Windows Server subscription activation validation in Volume Licensing Central now returns clearer errors and guidance for WSA, cloud scope, and tenant setup problems. This makes blocked contract processing easier to diagnose and reduces escalations.
FY27 Cloud & AI GTM launch (July 21, 2026)
FY27 Cloud & AI Platforms go-to-market resources began rolling out in July, including discussion guides and updated product pitch decks aligned to FY27 priorities. Use them to connect Microsoft Cloud and AI solutions to customer business outcomes.
“Request private offer” now available (July 20, 2026)
Publishers can add a “Request private offer” option directly to their Microsoft Marketplace listing page so customers can start pricing and terms conversations sooner, with requests captured as Marketplace leads. The toggle is off by default and is supported for SaaS, Azure application, Azure container, and Azure Virtual Machine offers.
Multiparty private offers expand to more markets (July 16, 2026)
Multiparty private offers added Australia, Japan, and South Africa to the existing supported markets, which already include the United States and Canada. The model lets software companies bring the offer while channel partners differentiate the solution, transact, and own the customer relationship.
Monthly Microsoft AI Cloud Partner Program update (July 15, 2026)
The July update continues to enhance partner differentiation and readiness across high-demand solution areas for partners enrolled in the Microsoft AI Cloud Partner Program. Review the update for the latest changes to Solutions Partner designations, specializations, and benefits.
Microsoft Pricing Updates
New CSP security add-ons: price alignment with EA (August 6, 2026)
Microsoft Entra ID P2, Defender for Endpoint P2, and Defender for Office 365 P2 add-ons are now available through CSP with pricing consistent between CSP and Enterprise Agreement. Consistent pricing simplifies licensing conversations for Microsoft 365 E3 customers who want advanced security without moving to E5.
August price list will not include a September preview for NCE license-based services (July 29, 2026)
The new commerce license-based services preview price list for September was not published on August 1, 2026. No changes are scheduled for the September 1 license-based price list. Share this with anyone in your organization who works from the preview file.
Microsoft Promos
Enter the CSP Copilot Partner Council Contest (August 10, 2026)
Submit your strongest Microsoft 365 Copilot customer success story by August 31, 2026, with evidence of at least 25 Copilot seats. Twenty winners earn a seat on the SMB Copilot Partner Council and an expenses-paid event in New York City, October 20 to 22, 2026. Winners are notified September 7 to 11, 2026.
Security and compliance offers for partners (August 6, 2026)
Two key offers are running now: 50% off the Microsoft Purview Suite for Business Premium customers who also license Microsoft 365 Copilot or Copilot Business, available through December 31, 2026; and 10% and 15% off Microsoft 365 E3 and E5 with one-year and three-year CSP terms, plus 10% off the Defender and Purview suites for new-to-E5 customers, available through September 30, 2026. Offer stacking is not allowed, so confirm eligibility before quoting.
Microsoft 365 promotion updates (August 3, 2026)
Microsoft 365 E3 promotions are extended through December 31, 2026, at 10% off for three-year new-to-offer and 20% off for one-year targeted offers. Microsoft 365 E7 promotions retire October 1, 2026, so eligible E7 transactions must close by September 30, 2026. Existing subscriptions purchased before retirement continue under contracted terms.
Copilot in 30 now generally available (August 3, 2026)
Copilot in 30 is a partner-led Microsoft 365 Copilot Business trial for customers with fewer than 300 employees, pairing a 25-user, 30-day trial with guidance on identifying priority users and use cases. It is transactable in CSP New Commerce now through December 31, 2026 using product ID CFQ7TTC0MM8R and SKU ID 006Z. A customer evaluation tool with industry-tailored prompts is rolling out in mid-August.