Azure CSP promotions: what MSPs need to know

New Azure CSP promotions are available from November 2. Read this post and you will be well-placed to take full advantage.

You may have sold the value of a new Azure workload to a customer, but the cost of getting started can still hold them back. For MSPs, that can make it harder to move an on-premises SQL workload to Azure, introduce Fabric to an existing customer, or expand a Foundry solution into production.

Traditional discount approaches can also be less flexible, with the discount period not necessarily aligned to when the customer is ready to ramp up consumption.

Azure CSP promotions can help solve these challenges.

How are Azure CSP promotions different?

The new model gives MSPs a partner-led way to reduce the cost of selected Azure adoption scenarios. The most important differences are:

• Acquired as a zero-dollar product. A promotion does not apply automatically. It must be explicitly acquired, effectively purchased as a USD 0 item, for each eligible customer. Acquisition activates the promotion immediately and starts its discount duration.
• Greater control over timing. Each promotion has an acquisition window, but the discount duration starts when the promotion is acquired. Partners can therefore align acquisition with the customer's planned workload ramp-up, provided they act before the acquisition window closes. Because activation is immediate and promotions cannot be canceled, timing matters.
• Entirely partner-led through Cloud-iQ. SoftwareOne's partners identify eligible customer opportunities and acquire promotions through an automated eligibility check in Cloud-iQ. For SoftwareOne partners, Cloud-iQ is therefore the operational route for activating these promotions.
• Clearer billing evidence. The standard reconciliation file shows the final net price after partner earned credit (PEC) and the promotion. A companion aggregated reconciliation file identifies affected usage lines and shows the promotion identifiers and price breakdown.
• No new Azure subscription or term commitment for the initial pay as you go (PAYG) offers. The customer must already have an Azure plan, but the first five promotions have no purchase minimum, no new subscription requirement, and no term commitment.
• How the promotion is evaluated. Once acquired for a customer, the promotion is evaluated across the customer’s Azure plan, not just the subscription or resource group selected during activation. The discount is automatically applied to eligible workloads and consumption covered by that promotion, wherever they sit under that Azure plan.

What promotions are available?

Microsoft's October 12, 2026 Partner Center announcement introduced five Data and AI promotions, available for acquisition from November 2, 2026 through April 30, 2027:

• Azure Database Modernization: up to 30% off eligible Azure database PAYG usage for qualifying customers migrating on-premises SQL Server workloads to Azure.
• Fabric for Microsoft 365 customers: up to 20% off Microsoft Fabric PAYG capacity for qualifying Microsoft 365 customers new to Fabric.
• Fabric for Azure Database customers: up to 20% off Microsoft Fabric PAYG capacity for qualifying Azure database customers with no previous Fabric spend.
• App PaaS for Foundry customers: up to 15% off eligible Azure App PaaS PAYG usage for qualifying Microsoft Foundry customers.
• Data Services for Foundry customers: up to 15% off eligible Azure data-services PAYG usage for qualifying Microsoft Foundry customers.

Each promotion must be activated separately. Several can coexist, but discounts do not stack on the same usage; where coverage overlaps, the highest applicable discount is selected.

Important details

• Customer- and workload-specific eligibility. Microsoft evaluates eligibility using criteria that can include region, existing usage, spend, or licensing history. Eligibility can be assessed in advance, but Microsoft revalidates it at acquisition and that final check determines qualification.
• Customer access and roles. Promotion acquisition requires appropriate access to the customer's environment, similar in principle to the access model used for PEC. The currently supported Partner Center roles are Admin agent, Billing admin, and Sales agent.
• Multiple promotions, but no stacking on the same usage. Several promotions can be active for the same customer at the same time. If more than one promotion applies to the same usage, Microsoft applies the single highest eligible discount. Partners should therefore plan workload timing and promotion acquisition carefully to maximize customer value.
• Fixed lifecycle. Promotions do not renew automatically and each one must be acquired separately. They cannot be canceled after acquisition. If the customer moves the Azure resources to another partner, the promotion under the original partner is canceled; the new partner would need to acquire an available promotion separately if the customer remains eligible and the acquisition window is still open.

For MSPs, Azure CSP promotions create a practical commercial lever for accelerating migration, analytics, and AI projects. Check likely eligibility early, confirm the customer's deployment schedule, and use Cloud-iQ to acquire the promotion only when the customer is ready to begin eligible consumption. Recheck eligibility and current terms immediately before acquisition because eligibility is finalized at that point, activation is immediate, and the promotion cannot be canceled.

The first five offers are available for acquisition from November 2, 2026 through April 30, 2027, and each provides a six-month discount from acquisition. Promotions must be acquired individually as USD 0 items and do not renew automatically. Several promotions may be active simultaneously, but they do not stack on the same usage; where coverage overlaps, the highest applicable discount is used.

For the Azure Database Modernization offer, Microsoft assesses qualifying on-premises SQL license revenue and limited recent Azure consumed revenue (ACR) from Azure databases. As a possible planning step, partners may consider whether bringing eligible on-premises SQL environments under Azure management, including through Azure Arc where appropriate, could contribute to the customer's CSP Azure activity. This should not be presented as a guaranteed route to eligibility: Microsoft determines eligibility using its recorded data and performs the final validation at acquisition.

PEC is applied first, followed by the promotion, and the result is reflected in reconciliation data. Microsoft does not require a separate customer action, but the partner accepts the terms on the customer's behalf and should align timing and pricing treatment with the customer before acquisition. A promotion is also canceled if the associated customer resources move to a different partner.

SoftwareOne can help partners understand the available promotions, assess customer scenarios, plan acquisition timing, and activate promotions through Cloud-IQ.

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