Partner Licensing Updates

Microsoft Product Highlights and Updates

Microsoft Agent 365 Now Generally Available

Microsoft Agent 365 is live as of May 1, giving organizations a centralized control plane to govern, secure, and manage AI agents across the Microsoft stack. If your customers are moving from AI pilots to production — or dealing with unmanaged "shadow AI" — now is the time to align on the right licensing path. Connect with your Partner Manager to discuss Agent 365 vs. Microsoft 365 E7 and build a governance-first rollout plan.

Extended Service Terms (EST) Now Enforced in CSP

As of May 4, the old "turn off auto-renew and wait" grace period is gone. Subscriptions that aren't renewed or cancelled at term end can now automatically roll into a paid EST, billed at the monthly rate plus a 3% uplift. Review your renewal list now and set the right end-of-term actions to avoid surprise charges or service disruptions for your customers.

Office, Project & Visio LTSC 2021 - End of Support October 13, 2026

Time is running out for customers still on these solutions. Use this deadline as an opportunity to drive modernization conversations toward Microsoft 365 E3/E5 and Copilot-ready cloud solutions.

Microsoft 365 E7 & Agent 365 GTM Resources Available

New partner resources, targeting signals, and funded engagements are now available to help accelerate AI-led customer conversations. Leverage these tools to prioritize high-propensity accounts and drive co-sell momentum.

Save the date: MCAPS Start for Partners

Join MCAPS Start for Partners on July 22, 2026 to gain early visibility into Microsoft’s FY27 priorities, investments, and go-to-market strategy so you can align planning and drive impact from day one.

Important updates to the Teamwork Deployment specialization

Microsoft has evolved the Teamwork Deployment specialization into the Secure AI Productivity specialization, aligning it to secure, scalable AI adoption and expanding required workloads and skilling. Partners should prepare for updated requirements, including holding both Modern Work and Security designations, to maintain eligibility and stay positioned for AI-driven customer engagements.

Keep skilling on track as AZ 500 transitions to SC 500

With AZ 500 retiring on August 31, 2026, partners can continue using it in the interim while planning a smooth transition to SC 500 to stay aligned with evolving cloud and AI security skilling requirements.

Oracle to PostgreSQL AI assisted migration tooling expands partner opportunity on Azure

New AI assisted Oracle to PostgreSQL migration tooling on Azure enables partners to accelerate modernization, reduce manual effort, and lead high value database migration services across customer environments.

Business Applications designation update

With Dynamics 365 Contact Center and Copilot Studio now counted as eligible workloads, partners have greater flexibility to attain and maintain their Business Applications designation while showcasing broader capabilities across AI and customer engagement solutions.

Windows 365 Business – End of Sale for Windows Hybrid Benefit (WHB)

Windows 365 Business WHB SKUs are now retired from sale, creating an opportunity for partners to guide new customers toward simplified, more competitive pricing options while supporting existing customers without disruption. Partners play a critical role in advising on manual transition paths, helping customers evaluate options and plan future moves aligned to their needs.

Security Store expands to Microsoft Entra, Purview

With Microsoft Security Store now embedded in Entra and Purview and AI-guided discovery generally available, partners have a prime opportunity to surface and position their solutions directly within customer security workflows at the point of decision.

Monthly Microsoft AI Cloud Partner Program update

This month’s updates help partners strengthen differentiation and accelerate readiness with AI-focused specializations, updated skilling paths, and simplified qualification frameworks. Key changes include the retirement of Partner University, expanded certification options, and evolving specialization requirements aligned to real-world AI deployment and growth. Partners should act now to prepare for upcoming transitions, including new audits, merged specializations, and embedded AI capabilities across the program.

Microsoft Pricing Updates

Microsoft 365 & Office 365 Price Increases Effective July 1

List price increases are coming across many M365 and O365 subscriptions. Renewal timing, SKU alignment, and licensing optimization can make a significant difference in customer costs. Connect with your Partner Manager now to review your renewals roadmap and model the impact before increases take effect.

Standardized Pricing for SQL Server Extended Security Updates

With SQL Server 2016 reaching end of support on July 14, new standardized ESU pricing creates urgency to engage customers on risk and cost. Use this as a catalyst to accelerate SQL modernization and Azure migrations.

New 3-Year Copilot Purchasing Option in CSP

Partners can now offer customers a three-year Microsoft 365 Copilot commitment in CSP, enabling larger AI investments with greater cost predictability and strong service attach opportunities.

Microsoft Promos

Microsoft 365 E7 Launch Promo — May 1 through December 31, 2026

• Annual commitment: 10% off (10–9,999 seats) | 15% off (100–9,999 seats)
• 3-year commitment: 15% off (300–9,999 seats)

Microsoft Purview Suite Promo Extended through July 1, 2026

The 50% discount on Microsoft Purview Suite for Business Premium gives partners additional runway to drive SMB adoption of advanced data security and compliance — a strong pairing with Copilot offers.