October 2026 announcements

This article provides the announcements for Microsoft Partner Center for October 2026.

New AI capabilities across business apps

CRM, contact center, and business process AI innovations give partners more ways to deliver customer outcomes.

  • Date: October 23, 2026
  • Workspace: General
  • Impacted audience: Partners building AI, CRM, customer service, contact center, and business process transformation solutions with Microsoft technologies.

Move customers from AI experimentation to measurable business outcomes with new Microsoft innovations across customer relationship management (CRM), support, and business process automation. These capabilities power new ways to deliver AI-powered solutions, accelerate customer value, and expand transformation engagements. Together, they support three key areas: moving from customer signals to business outcomes, reinventing business processes with agents, and modernizing contact centers with AI.

Key highlights include:

  • CRM in the flow of work: Surface customer context, insights, and actions directly in Microsoft Teams, equipping organizations to work across customer data and workflows without switching applications. In public preview from October 8, 2026.
  • Sales Development Agent: Autonomously research prospects, personalize outreach, follow up, and qualify leads so sales teams can scale capacity and increase productivity. In public preview from October 8, 2026.
  • Service Agent: Bring customer context, knowledge, and guidance into Microsoft 365 applications to support service delivery, follow-up actions, and collaboration across teams. In public preview from October 8, 2026.
  • Sales and Service Skills: Reusable Dynamics 365-powered skills that enable sales and service expertise to be incorporated into Copilot, Cowork, and custom agents. Generally available from October 8, 2026, in Copilot and Cowork; public preview from October 8, 2026, in Autopilot.
  • Agent Accounts in Copilot Studio: Build and manage agents for recurring business processes with governance, permissions, triggers, and business process memory, powering scalable automation across teams. In private preview from October 15, 2026.
  • Microsoft Contact Center Intelligence: Add Microsoft AI and agents to existing contact centers without rip-and-replace; helping organizations deliver conversational self-service, quality insights, and enterprise-grounded actions across voice and digital channels. In public preview from October 21, 2026.

Next steps

  • Explore upcoming launch resources and identify opportunities to incorporate these capabilities into customer AI transformation, CRM modernization, business process automation, and contact center engagements.
  • Prepare customer conversations around how AI can improve business outcomes without disrupting existing operations and identify opportunities to incorporate these capabilities into customer AI transformation, CRM modernization, business process automation, and contact center engagements.

Monthly Microsoft AI Cloud Partner Program update

What's new for Solutions Partner designations, specializations, and other Microsoft AI Cloud Partner Program offerings and benefits.

  • Date: October 22, 2026
  • Workspace: Membership
  • Impacted audience: Partners enrolled in the Microsoft AI Cloud Partner Program

This month's updates continue to enhance partner differentiation and readiness across high-demand solution areas. Key changes include specialization updates that integrate AI capabilities, revised skilling and performance requirements, and streamlined qualification frameworks to support partner growth and agility.

Changes to specializations and Solutions Partner designations

The Sales, Service, Finance, and Supply Chain specializations have been updated

On August 24, 2026, four AI Business Solutions specializations were updated. The Sales, Service, Finance, and Supply Chain specializations all received the following changes:

  • The eligible deployments are now defined by MAU instead of MCV.
  • The gross growth performance requirement is being removed.
  • Microsoft Marketplace tags are being updated to match current products.
Improvements to specialization audit reporting

Starting in September 2026, partners can withdraw their audit directly in Partner Center. Doing so changes their status to Audit Withdrawn and notifies the audit team. Partners can reapply for the audit as soon as they're ready, with no cooldown period.

Additionally, partners can view their Security or Azure Module A status in Partner Center. For specializations that require Module A, Partner Center displays the most recent completion date for that solution area and when the partner needs to complete Module A again.

Updated ACR workloads for five Cloud & AI Platform specializations

On August 31, 2026, the eligible Azure Consumed Revenue (ACR) workloads for five Azure specializations were updated to match the FY27 rollover taxonomy, and the specialization pages on partner.microsoft.com were refreshed to match. The specializations affected are AI Platform, AI Apps, App Modernization, Azure Virtual Desktop, and Azure VMware Solution. For each one, the strategic and super strategic pillars that count toward the performance requirements have been realigned to the FY27 rollover taxonomy, keeping the eligible ACR workloads and the pages current so partners can keep earning credit toward these specializations.

Coming soon

Change in Cloud Security skilling calculation

In October 2026, the Cloud Security specialization will be updated to count certifications more accurately and align the calculation with the other three Security specializations. Partners negatively impacted by the change will have until six months after the change goes live or their anniversary date, whichever is later, to update their certifications. After the change goes live, check Partner Center to confirm whether any certifications must be renewed to continue meeting the requirements.

Updates to the Hybrid Cloud Infrastructure with Microsoft Azure Stack HCI specialization

In October 2026, the Hybrid Cloud Infrastructure with Microsoft Azure Stack HCI specialization will be renamed to the Azure Local for Hybrid & Sovereign Private Cloud specialization. Additionally, the following updates will occur:

Addition of AB-650 to Modernize Endpoints specialization and Modern Work designation advanced skilling metric

The Microsoft 365 Certified: Administrator Expert (MS-102) certification is retiring on November 30, 2026. The Microsoft 365 Certified: AI Services Administrator Associate (AB-650) certification is being added to the Modernize Endpoints specialization and Solutions Partner for Modern Work designation advanced skilling metric to address this retirement. Certifications achieved prior to their retirement remain valid for one year.

Removal of SC-400 from the Solutions Partner for Security designation, one year after its retirement

The Microsoft Information Protection Administrator Associate (SC-400) certification retired on May 30, 2025, remained eligible for the Solutions Partner for Security designation for one year, and is now being removed from the calculation.

Retirement of the Custom Solutions for Microsoft Teams specialization

The Custom Solutions for Microsoft Teams specialization will be retired in November 2026. After retirement, new enrollments and renewals will no longer be accepted. If you're currently enrolled, your specialization will remain active until your anniversary date. We encourage you to explore other Modern Work specializations to continue demonstrating your expertise.

AI Builder capacity add-ons retiring

AI Builder capacity add-ons retire on November 1, 2026. Partners should turn off auto-renew before affected customers' next renewal date.

  • Date: October 22, 2026
  • Workspace: General
  • Impacted audience: Cloud Solution Provider (CSP) distributors, direct bill partners, and indirect resellers with customers using AI Builder capacity add-ons

Details

Starting November 1, 2026, Microsoft retires AI Builder capacity add-ons from sale. Customers with active subscriptions can continue using their existing AI Builder credits through the end of their current subscription term.

Important

Partners must turn off auto-renew before each customer's next renewal date to prevent the retired add-on from renewing.

Next steps

  • Turn off auto-renew for affected AI Builder capacity add-ons before each customer's next renewal date. Direct bill partners and indirect providers can do this in Partner Center. Indirect resellers should work with their distributor. Learn more about how to manage subscription renewals in Partner Center.
  • Plan to use Copilot Credits for customers who want to continue using AI Builder features after their existing credits expire.
  • Learn more about AI Builder credits retirement.

Grow E7 deals with Copilot credits

New limited-time offer: Grow Microsoft 365 E7 deals with matched Copilot credits

  • Date: October 21, 2026
  • Workspace: General
  • Impacted audience: All CSP authorized partners

A new limited-time Microsoft 365 E7 + annual Copilot Studio capacity pack Buy 5 Get 5 offer for Cloud Solution Provider (CSP) customers is available through December 31, 2026. The offer supports Microsoft 365 E7 upgrade and renewal conversations and helps eligible customers begin activating applicable usage-based AI scenarios.

What's in it for you

  • Lead with a broader AI opportunity: Microsoft 365 E7 brings together Microsoft 365 E5, Copilot, Entra Suite, and Agent 365, creating a foundation to activate additional AI scenarios across Copilot Cowork, Copilot Studio, Work IQ API, and more. Use the Microsoft 365 E7 + annual Copilot Studio capacity packs Buy 5 Get 5 offer to help customers move beyond licensing discussions and activate applicable usage-based AI scenarios.
  • Grow across the customer lifecycle: Create value across the customer journey with opportunities spanning licensing, services, and eligible usage-based consumption as customers adopt and scale AI.
  • Expand your revenue potential: Create additional revenue opportunities through CSP margin and eligible incentives on Microsoft 365 E7 seats and annual Copilot Studio capacity packs.
  • Grow your services opportunity: Support customers with deployment, scenario design, agent development, adoption, governance, and cost management.

What your customers get

When a customer purchases at least 300 new annual Microsoft 365 E7 seats through CSP, enables pay-as-you-go usage-based billing with an Azure subscription, and purchases at least 5 annual Copilot Studio capacity packs, Microsoft matches each eligible pack 1:1 for 12 months, up to 5 packs. This match provides customers with extra Copilot credit capacity to activate usage-based AI scenarios and expand their AI adoption, while admin-center spending limits can help them manage consumption and costs.

Next steps

  • Review the launch kit which provides a partner guide, a to-customer pitch deck, and an FAQ for complete eligibility requirements, offer terms, and limitations.
  • Begin identifying potential customer opportunities in partnership with your Microsoft sales team and within ASPX.

Office LTSC 2021 end of support

Office LTSC 2021, Project LTSC 2021, and Visio LTSC 2021 have reached end of support

  • Date: October 15, 2026
  • Workspace: General
  • Impacted audience: All partners, including Cloud Solution Provider (CSP) partners and advisors

Support for Office Long Term Servicing Channel (LTSC) 2021, Project LTSC 2021, and Visio LTSC 2021 ended on October 13, 2026. Microsoft no longer provides updates, security fixes, or technical support for these products.

Organizations can continue to use these products, but doing so might expose them to security vulnerabilities, compliance risks, and reduced reliability due to the absence of ongoing updates and security fixes.

This end of support milestone presents an opportunity for partners to help customers modernize their productivity environments by transitioning to cloud-based alternatives.

For most customers, Microsoft 365 provides key benefits, including:

  • Always-up-to-date experiences, with continuous security updates, feature enhancements, and innovation
  • Enterprise-grade security and management designed to support Zero Trust architectures and flexible work scenarios
  • Scalable and flexible licensing, allowing customers to adjust services as business needs evolve

Customers who move to Microsoft 365 suites gain access to cloud-backed desktop versions of familiar apps such as Word, Excel, and PowerPoint, along with web and mobile access across multiple devices.

Partners should note that Microsoft Copilot is supported only on cloud-backed apps included in Microsoft 365 suites, and on-premises versions of Office aren't eligible. In addition, the Azure Information Protection (AIP) labeling client for perpetual Office has been retired.

In cases where regulatory, connectivity, or technological constraints prevent the use of cloud solutions, customers might consider the latest supported on-premises alternatives, including Office LTSC 2024, Project LTSC 2024, and Visio LTSC 2024.

Next steps

Partners are encouraged to take the following actions:

  • Engage customers still using Office LTSC 2021, Project LTSC 2021, or Visio LTSC 2021 to reinforce that support has ended and communicate the risks associated with continued use of unsupported products
  • Prioritize Microsoft 365 E3 when guiding customers toward supported alternatives, with Office 365 E3 or Microsoft 365 Apps for enterprise as appropriate fallback options
  • Assess customer constraints related to connectivity, regulatory requirements, or offline use to determine the most appropriate supported path
  • Leverage available resources to address common concerns related to cost, migration complexity, or limited usage scenarios

Partners should engage affected customers now to help them transition to a supported solution and reduce the risks associated with continued use of unsupported products.

Updated October CSP pricelist

Updated October CSP pricelist now available

  • Date: October 15, 2026
  • Workspace: General
  • Impacted audience: CSP partners

The October CSP pricelist was updated and republished with corrected pricing as of October 8, in alignment with the Microsoft Partner Agreement.

Next steps

Copilot offers and name updates

Microsoft 365 Copilot SKUs without a base-subscription purchase prerequisite will be available December 1; current offers will be renamed "(add-on)" beginning October 16.

  • Date: October 14, 2026
  • Workspace: General
  • Impacted audience: Cloud Solution Provider (CSP) partners who quote, order, manage subscriptions, or run catalog or license automation for Microsoft 365 Copilot or Microsoft 365 Copilot Business across commercial, education, government, and nonprofit customers

Beginning December 1, 2026, new Microsoft 365 Copilot and Microsoft 365 Copilot Business offers can be purchased without a qualifying Microsoft 365 base subscription. The new offers will be available across all channels, including Cloud Solution Provider (CSP), for commercial, education, government, and nonprofit customers.

The new offers have their own product and SKU IDs and are priced the same as the current offers. New product and SKU IDs will be shared ahead of the price list preview on November 1, 2026. Beginning December 1, 2026, the new offers replace the add-on offers for new Microsoft 365 Copilot and Microsoft 365 Copilot Business purchases. This purchasing change affects how customers purchase Copilot, not the underlying Copilot capabilities.

What is changing for existing offers: Beginning October 16, 2026, the current offers that require a qualifying Microsoft 365 base subscription include "(add-on)" in their names. For example: "Microsoft 365 Copilot (add-on)" and "Microsoft 365 Copilot Business (add-on)." These add-on offers reach end of sale in CSP on December 1, 2026. End of sale isn't end of life; existing customers can continue to renew and adjust seat quantities.

What isn't changing: No action is required for existing subscriptions. Product and SKU IDs, pricing, renewal terms, auto-renew settings, and service remain unchanged. No migration or license reassignment is required. Copilot experiences continue to depend on the Microsoft 365 apps and services a customer is licensed for, and Copilot delivers a rich experience across Microsoft 365.

Next steps

  • By October 16: Update scripts, catalog mappings, and automations that rely on offer names to use product and SKU IDs.
  • On November 1: Review the new offers in the price list preview.
  • Review the partner FAQ.
  • Review Microsoft 365 Copilot licensing.

Join SQL Modernization Day on Oct 20

Help your customers modernize SQL: Join the no-cost SQL Modernization Day livestream, with eight sessions from the Microsoft SQL team.

  • Date: October 14, 2026
  • Workspace: General
  • Impacted audience: Partners who sell, migrate, or manage SQL Server and Azure data workloads, especially those with customers still running SQL Server 2016

SQL Modernization Day is a no-cost, half-day livestream on Microsoft Reactor on Tuesday, October 20, 2026, from 9:00 AM–1:00 PM PT. Across eight sessions, the Microsoft SQL team walks through the full modernization path: moving SQL Server to Azure SQL, Azure SQL Managed Instance, Azure Virtual Machines, and SQL database in Microsoft Fabric, then building AI apps once customers land.

You also see two capabilities, now in public preview:

  • The SQL modernization agent, delivered as skills that plug into any interface that supports skills, starting with GitHub Copilot CLI and Visual Studio Code
  • Expanded Azure Arc migration, so you can migrate multiple instances at once to Azure SQL Database, Azure SQL Database Hyperscale, or Azure SQL Managed Instance

SQL Server 2016 is now out of support, which makes this a timely resource to share with customers still running it. Can't attend live? Every session is published to YouTube after the livestream.

Important

The SQL modernization agent and multi-instance Azure Arc migration to Azure SQL Database and Hyperscale are in public preview. Preview features are subject to change and might have limited availability. Agenda and speakers are subject to change. Participation is subject to the Microsoft Reactor Code of Conduct, linked on the registration page.

Next steps

Register for the livestream and share the link with your customers.

Azure CSP promotions: A new growth and profitability lever for partners

Azure CSP promotions: A new growth and profitability lever for partners

  • Date: October 12, 2026
  • Workspace: General
  • Impacted audience: All CSP partners—direct bill partners, distributors, and indirect resellers—transacting Azure consumption-based services in CSP

Microsoft is introducing Azure consumption promotions for Cloud Solution Provider (CSP) partners, offering time-bound discounts on select Azure products for eligible customer segments.

Designed for you to drive growth, these promotions provide another way to make Azure more competitive for the right customers, while keeping your existing CSP operations unchanged.

Promotions include:

  • Azure Database Modernization: Up to 30% off eligible Azure database pay-as-you-go (PAYG) usage for customers migrating on-premises SQL Server workloads to Azure
  • Fabric for Microsoft 365 Customers: Up to 20% off Microsoft Fabric PAYG capacity for eligible Microsoft 365 customers new to Fabric
  • Fabric for Azure Database Customers: Up to 20% off Microsoft Fabric PAYG capacity for Azure database customers with no prior Fabric spend
  • App PaaS for Foundry Customers: Up to 15% off eligible Azure App PaaS PAYG usage for Microsoft Foundry customers
  • Data Services for Foundry Customers: Up to 15% off eligible Azure data services PAYG usage for Microsoft Foundry customers

Why it matters for your business:

  • Reach new customers using targeted offers to engage organizations that might not otherwise begin a migration, analytics, or AI modernization journey
  • Establish lasting Azure usage and create opportunities for future workload expansion and Azure consumption growth
  • Open new workload opportunities by helping customers move forward on projects they might otherwise delay
  • Increase profitability by growing Azure consumption while strengthening long-term customer relationships
  • Drive additional opportunities for migration, deployment, optimization, and managed services engagements

These promotions are designed to drive more value to your bottom line.

  • Keep your full partner earned credit (PEC): Promotions don't reduce PEC. Promotional value is applied separately, preserving existing partner economics
  • Build on existing earnings: Promotions are additive to your CSP incentives and investments

How to activate:

  1. Sign in to Partner Center (or use the Eligibility API) to view current promotions.
  2. Redeem the promotion for an eligible customer during the redemption window. Discounted usage is applied automatically during the promotion period.
  3. Track discounts line by line in your usage and reconciliation files using the promotion identifier and discount source fields.

Readiness materials are available now, including the readiness guide, FAQ, Partner Center walkthrough, and billing and reconciliation guide. Offers are subject to eligibility, terms, and conditions.

Next steps

To be ready to activate promotions when they're available on November 2:

Multiparty private offers expand to Hong Kong SAR

Microsoft Marketplace has expanded multiparty private offers to Hong Kong SAR, in addition to current markets.

  • Date: October 8, 2026
  • Workspace: General
  • Impacted audience: Software development companies and channel partners selling to customers in Hong Kong SAR

New opportunities for channel-led growth are available with the expansion of multiparty private offers into Hong Kong SAR through Microsoft Marketplace. Multiparty private offers help make it easier for partners to collaborate on deals, simplify sales, and scale across borders.

  • Software development companies gain more opportunities to reach new customers and drive growth, without adding operational complexity
  • Channel partners differentiate their offerings with vetted solutions while maintaining customer relationships

This expansion into Hong Kong SAR builds on our continued investments in scaling channel-led sales. With new routes to market, partners can drive more growth, move faster, and deliver end-to-end solutions to customers across borders through Marketplace.

Multiparty private offers are available when selling to customers in the following countries/regions: Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong SAR, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Africa, Spain, Sweden, the United Kingdom, and the United States.

Next steps

Read the blog for more details on this multiparty private offer expansion and how to start selling to the Hong Kong SAR market.

Explore what's new in PostgreSQL

Turn new PostgreSQL on Azure capabilities into modernization and managed services opportunities.

  • Date: October 7, 2026
  • Workspace: General
  • Impacted audience: Systems integrators, global systems integrators (GSIs), software development companies

Put the latest PostgreSQL on Azure capabilities at the center of your next database conversation. Announced at FabCon Europe, the updates pair AI-assisted operations with Azure Ultra Disk Storage, Storage Autogrow, and long-term retention previews, plus governance and access management capabilities for enterprise operations.

In 16-vCPU testing by Principled Technologies, Azure Database for PostgreSQL flexible server with Dv6 compute and Premium SSD v2 processed 72.7% more new orders per minute without high availability and 79.2% more with high availability than a comparable PostgreSQL configuration.

Now, partners can turn that proof into action. Run an assessment, define the customer's path to Azure, and extend the opportunity through migration and managed operations services.

Next steps

Review the Principled Technologies study to inform your PostgreSQL assessments.

New security designation workloads

More ways to attain the Solutions Partner designation for Security.

  • Date: October 5, 2026
  • Workspace: General
  • Impacted audience: CSP distributors, CSP indirect resellers, CSP direct bill partners, Scale Solution Providers (SSPs), and global systems integrators/systems integrators (GSIs/SIs) pursuing the Solutions Partner designation for Security

Stand out from the competition and unlock benefits that grow your business with more ways to attain the Solutions Partner designation for Security.

New Azure security Azure Consumed Revenue (ACR) workloads are now eligible toward the Solutions Partner designation for Security, offering more recognized workload paths to demonstrate performance, strengthen market differentiation, and move closer to designation attainment.

Newly added and renamed eligible workloads include:

  • Application Gateway
  • Azure Active Directory B2C
  • Azure Active Directory for External Identities
  • Azure Bastion
  • Azure DDoS Protection
  • Azure Firewall
  • Azure Firewall Manager
  • Azure Front Door Service
  • Azure IoT Security
  • Key Vault
  • Microsoft Defender for Cloud
  • Microsoft Entra
  • Microsoft Entra Domain Services
  • Microsoft Entra Verified ID
  • Microsoft Purview
  • Microsoft Security Copilot
  • Microsoft Sentinel

Note

The Network Watcher workload is no longer an eligible workload for this designation.

Next steps

Check Partner Center to find out how the expanded workload eligibility might advance your path to the Solutions Partner designation for Security.

Update: Usage-based billing is default on for new Microsoft 365 Copilot Business licenses starting December 1, 2026

Update 10/14: This announcement was updated with new assets and resources as of October 14, 2026.

The effective date for this change was updated. Previously communicated as November 2, 2026, usage-based billing will now be enabled by default for new Microsoft 365 Copilot Business subscriptions purchased through CSP, beginning December 1, 2026. Additional updates on availability, Partner Center sandbox environments, default spending limits, and new assets (as of 10/14) are also included.

  • Date: October 1, 2026
  • Workspace: General
  • Impacted audience: CSP partners (distributors, indirect resellers, direct bill, SSPs), systems integrators, and software development companies selling Microsoft 365 Copilot Business

Starting December 1, 2026, usage-based billing will be enabled by default for new Microsoft 365 Copilot Business licenses purchased in Cloud Solution Provider (CSP). Pay-as-you-go will be the default billing configuration to help customers access eligible usage-based experiences, including Copilot Cowork, Work IQ APIs, and GitHub Copilot Harness, with less billing setup, while also providing flexibility to expand usage over time based on business needs.

Key details

  • Updated effective date: December 1, 2026, previously communicated as November 2, 2026.
  • Applies to: New purchases of Microsoft 365 Copilot Business licenses, including standalone offers and bundles, with usage-based billing enabled by default.
  • Default spending limit: The default spending limit will be 4,000 Copilot Credits per user per month, which can be adjusted by admins. For example, a customer with 100 M365 Copilot Business users could consume up to 400,000 Copilot Credits per month under the default spending limit, with UBB charges based on actual usage.
  • Availability: The change will begin rolling out to eligible customers in supported markets. It will initially not be available in Australia, Belgium, Brazil, France, Germany, India, Italy, Korea, the Netherlands, Poland, and Spain. We'll share additional information as availability expands to these markets.
  • Partner Center sandbox environment: To help drive partner technical readiness and testing, Partner Center sandbox environments will be available November 2.

What this means for partners

  • Less setup friction: New Copilot Business licenses include the Azure subscription setup needed for usage-based billing.
  • More focus on adoption: You can spend more time helping customers activate high-value scenarios and realize business outcomes, with less effort spent on multistep billing configuration.
  • Greater growth opportunity: Early usage can create a natural path to expanded consumption, upsell conversations, and the Copilot Cowork activation incentive (PDF).

Next steps

Prepare for the change

Resources (Updated 10/14)

Enhance Business Premium security deals with a new CSP partner promotion

Build a 7.5% promotion into qualifying Business Premium security quotes beginning October 1, 2026.

  • Date: October 1, 2026
  • Workspace: General
  • Impacted audience: Eligible CSP direct bill partners and distributors selling Defender Suite or Purview Suite for Business Premium to customers with fewer than 300 seats

Starting October 1, 2026, Microsoft is introducing a 7.5% promotional Cloud Solution Provider (CSP) pricing for eligible partners offering Microsoft Defender Suite for Business Premium and Microsoft Purview Suite for Business Premium to eligible customers with fewer than 300 seats.

Eligible CSP distributors and direct bill partners receive promotional pricing that they can build directly into quoting and pricing. If eligible, you decide how to reflect that pricing in your offer, giving you greater flexibility to compete, manage deal economics, and expand your small and medium-sized business (SMB) security business.

The promotion also broadens access beyond the partner groups covered by the previous rebate to eligible CSP direct bill partners and distributors.

The Microsoft Commercial Partner Incentives Guide governs eligibility, availability, and terms.

Next steps

  • Review the CSP promotion guide for eligibility and terms.
  • Identify qualifying Business Premium opportunities with fewer than 300 seats in your customer base.
  • Update sales and quoting guidance so teams can apply the 7.5% promotion starting October 1, 2026. Partners that don't prepare risk using outdated rebate-based processes, missing eligible opportunities, or quoting the promotion incorrectly.

Growth margin is live

Earn incremental margin on qualifying growth across strategic workloads starting October 1, 2026.

  • Date: October 1, 2026
  • Workspace: General
  • Impacted audience: CSP direct bill partners and distributors

As announced in July, growth margin goes live on October 1, 2026, creating a new way for eligible Cloud Solution Provider (CSP) direct bill partners and distributors to earn extra margin as they grow customer adoption of strategic Microsoft solutions.

Partners can now earn incremental margin on top of base margin when they drive qualifying growth across Microsoft 365 Copilot, Microsoft 365 E5, Microsoft 365 E7, Microsoft Defender Suite, Microsoft Purview Suite, and Windows 365 Enterprise.

Growth margin rewards the customer expansion motions that help build recurring revenue and stronger customer relationships: landing new workloads, increasing adoption, and expanding customers into strategic solution portfolios.

Because eligibility is evaluated at the customer tenant level across Microsoft channels and partners and is locked when the transaction finishes, validating eligibility before every quote remains an important step. Use the Partner Center experience or Partner Center API to confirm eligibility and maximize your opportunity to earn growth margin on qualifying transactions.

Starting October 1, base margin also adjusts on select Microsoft 365 and Office 365 products. Distributors and direct bill partners can review product-level details and rates in the gated growth margin guide.

Customer pricing remains unchanged; growth margin impacts the economics between Microsoft and your business, giving you extra flexibility in how you invest, reward growth, and build customer value.

Next steps

Questions

For questions about growth margin eligibility or the Partner Center API, open a support request in Partner Center.

Eligible partners still completing API changes can open an Advisory Case with Microsoft Partner Technical Consulting.

Dynamics 365 Business Central license key version update

Transition your customers from version-specific license keys to a single forward-compatible key for Business Central versions 28 and later.

  • Date: October 1, 2026
  • Workspace: General
  • Impacted audience: Partners supporting any on-premises edition of Dynamics 365 Business Central, including Dual Use Rights licenses for Business Central online customers

Effective October 1, 2026, new releases of Dynamics 365 Business Central will no longer include version-specific license keys for on-premises. For Business Central versions 28 or later, "28+" will be the relevant license key version. Releases prior to version 28 (such as 27, 26, and others) will continue to have version-specific license keys.

What this means for you and your customers

At each new version release on or after October 1, 2026, Business Central customers must download a refreshed version of the 28+ license key if they wish to upgrade to the latest version. The date on which the 28+ license key is downloaded will determine which objects are unlocked on the license file.

For example, at the release of Business Central version 30 in April 2027, customers can download a new 28+ license key to unlock the version 30 objects on their license. Customers who attempt to run a version 30 deployment with a 28+ license key that was downloaded on October 1, 2026, will receive a version compatibility warning message. The product will consider version compatibility for 28+ license keys, depending on the date on which the license key was downloaded.

Next steps

  • Support your customers by ensuring they have the appropriate refreshed 28+ license key before each Business Central version upgrade.
  • Business Central online customers can download their Dual Use Rights (DUR) license keys from the Microsoft 365 Admin Center by following these instructions. Note: The license key version number for Business Central DUR license keys downloaded from the Microsoft 365 Admin Center will appear as "28" upon initial release; the format will be corrected to "28+" by the second week of October.
  • There are no changes to the release cycle for Business Central major and minor versions as a result of this announcement. See the latest Business Central updates.
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