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May 2025 announcements

This page provides the announcements for Microsoft Partner Center for May 2025.

Microsoft 365 Business Premium & Office 365 E1 grant discontinuation on CSP and Web Direct channels

Microsoft 365 Business Premium & Office 365 E1 grant discontinuation on CSP and Web Direct channels.

  • Date: May 15, 2025 (Updated May 19, 2025)
  • Workspace: General
  • Impacted audience: Partners with nonprofit customers who are on these grants, Partner Development Managers, and Partner Solution Sales Managers

Microsoft announced on Wednesday, May 14, 2025, that the Microsoft 365 Business Premium grant and Office 365 E1 grant on CSP and Web Direct Channels will be discontinued for nonprofit customers upon their next renewal date on or after July 1, 2025.​

To support nonprofits during this transition, Microsoft continues to offer:​

  • Up to 300 granted licenses of Microsoft 365 Business Basic​
  • Discounts up to 75 percent on many Microsoft 365 nonprofit offers, including Microsoft 365 Business Premium and Office 365 E1.

Next steps

Proposed settlement with European Commission: Implications for Microsoft 365 and Microsoft Teams

The European Commission initiated a public market test on May 16, 2025, for a proposed settlement agreement with Microsoft in its investigation regarding Microsoft’s inclusion of Microsoft Teams with Microsoft 365 and Office 365 suites

  • Date: May 15, 2025
  • Workspace: General
  • Impacted audience: All partners

The European Commission initiated a public market test on May 16, 2025, for a proposed settlement agreement with Microsoft in its investigation regarding Microsoft’s inclusion of Microsoft Teams with Microsoft 365 and Office 365 suites. If accepted, the terms of the agreement require Microsoft to make changes to pricing and discounting policies for commercial Microsoft 365 and Teams offerings.

Details

On May 16, 2025, the European Commission initiated a public market test for a proposed settlement agreement with Microsoft in its investigation regarding Microsoft’s inclusion of Microsoft Teams with Microsoft 365 and Office 365 suites. If accepted, the terms of the agreement require Microsoft to make changes to pricing and discounting policies for commercial Microsoft 365 and Teams offerings.

Partners are requested to take no proactive action at this time. You may refer customers to Microsoft’s official statement for further information. The terms of the settlement aren’t final yet and may change as a result of the current public market test. There's no fixed timeline for the settlement agreement to be finalized. Customers concerned about renewing or signing a contract before the agreement is finalized may be reassured that doing so won’t prevent them from benefiting from the terms of the agreement when it goes into effect.

Next steps

Review Microsoft’s official statement on the EU Policy Blog and the Partner FAQ for more information.

Monthly update: Important actions partners need to take to secure the partner ecosystem

Important capabilities and updates to improve your security posture and protect your customers' tenants are now available.

  • Date: May 14, 2025
  • Workspace: General
  • Impacted audience: Direct bill partners, indirect providers, and indirect resellers transacting through the Cloud Solution Provider (CSP) program and with advisors

Available now

Important

Deprecation of graph.windows.net audience tokens: To enhance our security measures, we're deprecating graph.windows.net audience tokens. So, we're updating the way you interact with Partner Center APIs. Take the necessary steps to prepare for this transition.

MFA for M365 admin center: Microsoft is enforcing multifactor authentication (MFA) for all users signing into Microsoft 365 admin center portal. Review the latest information and timeline.

Next steps

Reminder: Changes to Partner of Record (POR) assignment for CSP resellers is coming

Beginning September 1, 2025, we implement changes to the PLA API and UI to help distributors (formerly indirect providers) assign only authorized indirect resellers as Partner of Record (POR) on new Cloud Solution Provider (CSP) subscriptions.

  • Date: May 14, 2025 (Updated June 4, 2025)
  • Workspace: General
  • Impacted audience: All CSP distributors and indirect resellers

To ensure compliance with CSP Partner of Record (POR) policies, beginning September 1, 2025, we're updating the Partner Location Account (PLA) API and UI in Partner Center to ensure distributors (formerly indirect providers) assign active, compliant indirect resellers as POR for new subscription orders.

You can read the full details on this update in the March 20, 2025, announcement.

Important

As of September 1, 2025, both the API and UI check if the reseller is in compliance with the reseller’s authorization terms.

Next steps

To avoid disruption of service, indirect resellers must:

To avoid disruption of service, distributors must:

Microsoft Customer Agreement partner attestation blocking changes October 7, 2025

Microsoft is making blocking changes for net new customer orders.

  • Date: May 8, 2025
  • Workspace: General
  • Impacted audience: All distributor (formerly indirect provider) and direct bill partners using the current API, Partner Center UX, or MCA bulk attestation tool to attest that customers accepted the MCA

Microsoft is making blocking changes for net new customer orders. Currently, distributors (formerly indirect provider) and direct bill partners can attest to the Microsoft Customer Agreement (MCA) for their customers in three ways: using an API, using the Partner Center UX, or using the MCA bulk attestation tool. Beginning October 7, 2025, there will only be two ways the MCA can be accepted: through a new, enhanced partner attestation API or direct customer acceptance. The current API and the Partner Center UX will be retired on October 7, 2025. In addition, after July 1, 2025, the MCA bulk attestation tool will no longer perform bulk attestations and will have a read-only capability.

Details

Microsoft runs on trust. Operating compliantly is essential to maintaining trust with our customers, and partners play an important role in ensuring compliance. One of our key documents is the MCA. Microsoft requires proof (evidence) of an accepted MCA for customer purchases, which is currently either by direct customer acceptance or attestation by the partner on the customer's behalf.

Ensuring customers review and accept the MCA is essential for upholding their terms. Currently, distributors (formerly indirect providers) and direct bill partners can attest to the MCA for their customers in three ways: using an API, using the Partner Center UX, or using the MCA bulk attestation tool.

Audit findings show that some partners struggle to provide proof that customers accepted agreements, which can cause regulatory, copyright, and security issues. To improve compliance, protect intellectual property, and enhance security, Microsoft is making these changes to the attestation process.

Beginning October 7, 2025, Microsoft will block orders for net new customer purchases, unless the customer directly accepted, or the partner attested using an enhanced API. Changes to the partner attestation process include:

  • A new, more compliant API-based attestation method
  • Retirement of the existing API-based partner attestation model
  • Removal of the UX- based attestation experience in Partner Center

The new API will be available in sandbox on April 11, 2025, for partners to begin integration and testing should they wish to continue using partner attestation. You can learn about the change and API integration on Microsoft Learn.

If partners don't integrate the new, enhanced API by October 7, 2025, their net new customers will need to directly accept the MCA through the Microsoft 365 admin center before placing an order.

The existing API will be retired on October 7, 2025, and any attestations using the current API will fail. Sandbox testing for the existing API ends on the same date.

Partners who are using the current attestation process, or are having their customers directly accept the MCA, won't need to reaccept those MCAs after October 7, 2025. Only net new customers, for which you want to attest, are impacted by the changes.

Also, Microsoft is revising the MCA bulk attestation tool capability. On July 1, 2025, the bulk attestation capability will be retired, and the tool will be limited to read-only. The bulk tool is retired in January 2026.

Next steps

  • Ensure the appropriate teams within your organization are aware of these changes.
  • Evaluate the new, enhanced MCA attestation API, which is now available in sandbox, to determine if the solution makes sense for your organization.
  • Go to the Confirm your customer accepted the Microsoft Customer Agreement Sandbox only article on Microsoft Learn for complete information on the steps required to incorporate the new, enhanced attestation API into your processes.
  • Review the Attestation Changes FAQ MCA partner attestation API enhancement FAQ.
  • If your organization wants to continue using the attestation API experience, you can now use the new API in a sandbox environment. You can find complete instructions within the API integration article on Microsoft Learn.
  • If you're using one of the current attestation options, API or Partner Center UX based attestation, but choose not to transition to the new, enhanced API, you'll need to incorporate direct customer acceptance of the MCA via the Microsoft 365 admin center into your processes.

    Note

    Before an order can be placed on a customer’s behalf, the customer must accept the MCA. If you're placing an order, and the customer hasn't accepted the MCA, you'll be blocked until the customer accepts the MCA.

  • Finally, if you're currently using direct customer acceptance of the MCA, and have no plans to transition to the new, enhanced attestation API, no action is needed.

May Cloud Solution Provider (CSP) monthly updates and community reminder

Monthly views are now published including the updated partner launch calendars, the CSP Bimonthly Update newsletter, along with additional CSP community resources that provide you with essential program updates.

  • Date: May 6, 2025
  • Workspace: General
  • Impacted audience: CSP direct bill partners and indirect providers

Always available—Launch content on demand

For a consolidated view of all recent and active launches in a single place, visit the partner launch calendars collection. You'll find a timeline for each launch and links to published materials to help you learn more about that launch.

The downloadable CSP Bimonthly Update newsletter which aggregates recent CSP announcements, updates, events, and reminders in an easy-to-read document.

Partner Journey Maps provide detailed navigation along the journey of Microsoft’s highest priority transformations.

Need licensing readiness? The monthly CSP spotlight webinars cover the latest CSP licensing information available for all partners.

CSP Community Q&A reminder

The monthly CSP community Q&A session provides you with an opportunity to learn more and ask questions about changes affecting the program.

Register here to join upcoming calls.

Questions?

The monthly CSP community Q&A call is the best place to bring questions about operational change in the CSP program. You may submit a question up to 48 hours before the call.

Questions on any other CSP topic? Visit the Partner Center support page.

Next steps

Review the Partner Launch Calendar, monthly newsletter, and register for upcoming Community Q&A calls.

Flexible billing schedules through private offers are now generally available

Today, we’re announcing that Microsoft’s commercial marketplace now offers flexible billing improvements through private offers to better align with customer needs. Flexible billing is available globally to all marketplace-supported currencies.

  • Date: May 5, 2025
  • Workspace: Marketplace offers
  • Impacted audience: All partners transacting in the marketplace

The value for your customers and for you

Partners can create private offers with flexible billing schedules to align with their customers’ budget cycles and purchasing preferences, enabling personalized billing without affecting invoice cycles. This capability is supported for SaaS products, VM software reservations, and Professional Services.

Next steps

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.

Important capabilities, offers, and updates are introduced to improve the way partners can further differentiate their deep technical expertise across a set of priority scenarios with high customer demand. Other benefits added for eligible Solutions Partner with certified software designations.

  • Date: May 5,2025
  • Workspace: Membership
  • Impacted audience: Partners enrolled in the Microsoft AI Cloud Partner Program

SMB path for Data & AI (Azure), Digital & App Innovation (Azure), Infrastructure (Azure) is available: On January 31, 2025, the Microsoft AI Cloud Partner Program introduced SMB paths for Solutions Partner designations in Data & AI (Azure), Digital & App Innovation (Azure), and Infrastructure (Azure). Microsoft AI Cloud Partner Program Account Administrators and Global Administrators can Check your designations and see your status in these Azure solution areas.

European & Non-European version for M365 & Teams Enterprise benefits: The Microsoft 365 Business Premium (no Teams), Microsoft 365 E3 (no Teams), Microsoft 365 E5 (no Teams), and Teams Enterprise product benefits are now available in two versions on Partner Center benefits.

  • EEA (European Economic Area) and Switzerland version
  • Non-EEA version

If the tenant for which the partner wants to activate the 5x5 cloud keys is located in the European Economic Area or Switzerland, the EEA version of the product benefit is to be selected in Partner Center. For tenants located outside these regions, the non-EEA version of the product benefit is to be selected.

For more information, see Microsoft AI Cloud Partner Program benefits FAQ.

The SMB path for Security Solutions Partner Designation is available: The Microsoft AI Cloud Partner Program recently introduced SMB paths for Security Solutions Partner designation. Now is the perfect time to start your preparations to qualify. For more information on Azure solution area qualifications, see the SMB path for Security and the Solutions Partner designation walking deck.

Note

The Security SMB path isn't eligible for Microsoft Commerce Incentives (MCI).

The new Azure Specialization V.Next for Build AI Apps

As announced at Ignite, we recently launched the new Azure Specialization V.Next offer for Build AI Applications with Azure. This offer is an alternative path option for qualified partners to meet the Module B audit requirement by using existing already completed projects in the Azure Innovate (AI) partner-led program.

How does this work? Rather than requiring an audit, we use completed Azure Innovate Partner led engagements. Here are the program qualifications:

  • Partner is currently enrolled in one (1) Azure specialization
  • Partner must complete at least three (3) qualified Azure Innovate Partner-led engagements

Details for qualified Partner-led engagement eligibility:

  • Post-sales engagements only, no POV engagements
  • Size of engagements: Small, Medium, Large only (no XS projects, these are excluded)
  • $300 per pillar per engagement: three pillars must qualify. They include Data Platform, AI Platform, and Application Platform (aligned with your AI Design Win construct)
  • Module A remains a requirement; this needs to be in place to qualify for Module B

More Steps

Capitalize on qualified work already completed in your AI partner-led program. For more information, see Azure Specialization V.Next Offer Partner Walking Deck and the Azure V.Next FAQ. Expect this offer to expand in FY26. To learn more about Azure Innovate partner incentives, see the Azure Innovate Program.

​Updates to Infrastructure and Database Migration to Microsoft Azure Specialization

We've recently updated the performance and skilling requirements for the "Infrastructure and Database Migration to Microsoft Azure" specialization.

Previously, partners needed to demonstrate experience with both Windows/Linux infrastructure and SQL/OSS databases. But customers prefer partners who excel in Azure cloud migrations. To address this, we revised the requirements to focus on either Windows or Linux and either SQL or OSS databases, aligning with recent audit updates.

We also added the Azure Security Engineer Associate certification to the skilling requirements and increased the number of required certified individuals from three (3) to four (4) to emphasize the importance of security throughout the migration process.

Lastly, to replace the expiring Azure Data Engineer Associate certificate, we added the Azure Database Administrator Associate certificate. More on this in What’s coming.

Renewals for the MAICPP Training Services Designation

As of April 5, partners who are within their enrollment window have the opportunity to renew their TSP Designations. This is your chance to continue benefiting from our exclusive offers and support.

For those whose renewal window is approaching later, don't worry! You are able to renew your designation when your time comes.

Stay tuned and make sure to take advantage of this fantastic opportunity to keep your partnership with us strong and thriving!

For more information, see Partner Services Training Program.

More benefits with Solutions Partner certified software designations

Apply today to attain one of the seven Solutions Partner with certified software designations to qualify for top tier benefits.

Certified software designations for solution areas (specifically, Azure and/or Security) or Industry AI, receive top-tier benefits in addition to their own set of benefits. All partners are encouraged to pursue one of Azure-based certified software designations including Certified software for solution areas in Azure and Security; or Certified software for Industry AI designations; including Healthcare AI, Retail AI, Financial Services AI, Manufacturing AI, and Sustainability AI.

Microsoft is offering subsidies on a first-come, first-served basis for assessments conducted by the third-party auditor for qualification in these designations. Note that active partners currently nominating through the Azure partner-led offerings for ISVs, including Azure Migrate and Modernize and Azure Innovate, won't lose access to these incentives for the remainder of the fiscal year (through June 30, 2025).

What's coming

Skilling changes for several specializations

Expiring Skilling certifications in Analytics, Data Warehouse Migration, and Migrate Enterprise Applications specializations and the Azure Expert MSP Program was removed and is replaced in Analytics and DW Migrate with the Fabric Data Engineer Associate certificate.

The Azure Data Engineer Associate certificate expired on March 31, 2025. For the Analytics and DW Migrate specialization skilling requirements, this certification will be replaced by the Fabric Data Engineer Associate certificate. For the Migrate Enterprise Apps specialization and Azure Expert Managed Services Provider, the Azure Data Engineer Associate will no longer be required. Visit our Specializations Community site for the most current information.

The Azure Data Engineer Associate certification remains valid until March 31, 2026.

Security Information Protection and Governance Specialization:

Microsoft Certified: Information Protection Administrator Associate is retiring on May 31, 2025. This certificate will be replaced by the recently launched SC-401 “Information Security Administrator”. Your team can start preparing and practice for this exam. SC 401 Microsoft Certified: Information Security Administrator Associate.

For those who obtained Information Protection Administrator Associate before the retirement date, it will remain valid until May 31, 2026.

Next steps

Three-year subscription terms for Microsoft 365 E3 and E5 coming to CSP

Beginning June 1, 2025, Microsoft is offering a more consistent experience across purchasing channels.

  • Date: May 1, 2025 (Updated May 6, 2025, May 9, 2025, and July 3, 2025)
  • Workspace: General
  • Impacted audience: Cloud Solution Provider (CSP) partners

Details

As the market opportunity for small and medium enterprise customer segments grows, CSP partners play a key role in capturing this opportunity, offering value-added services and trusted guidance that accelerate AI transformation.

To further our investment in partners who are delivering transformational impact for customers, we introduce updates designed to help you drive renewals and upgrades, retain customers, upsell, and scale your business.

Introducing three-year terms for Microsoft 365 E3, Microsoft 365 E5, and Microsoft Teams Enterprise in CSP

On June 1, 2025, we expect to launch three-year subscription terms for E3 and E5, with or without Teams, and Teams Enterprise in CSP. The plans are only available for purchase with three-year upfront or triennial/annual billing options. Also, starting July 1, 2025, a three-year subscription for Microsoft 365 E5 Security and E5 Compliance mini suites is available.

Lastly, at either mid-term or renewal, partners can upgrade existing customers who have EOS subscriptions of Microsoft 365 Enterprise suites with Teams to the new three-year EOS terms. This helps ensure that these customers can keep their Teams entitlement as they move to a three-year subscription. The three-year enterprise SKUs released on June 1, 2025, can only be acquired by upgrading them or purchasing them. Customers with enterprise SKUs cannot change the term to get them. For more information on this change, see Pricing and Offers.

June 1: GA Microsoft 365 three-year SKUs
  • Microsoft 365 E3 without Teams
  • Microsoft 365 E5 without Teams
  • Teams Enterprise standalone
  • Options for triennial terms paid upfront or annually only; minimum purchase requirement of 100 licenses (enforced at the SKU level)
  • Publishing on the price list preview May 1, 2025*
  • SKUs available on CSP price list on June 1, 2025
June 1: End of sale (EOS) Microsoft 365 three-year SKUs
  • Microsoft 365 E3 with Teams
  • Microsoft 365 E5 with Teams
  • Options for triennial terms paid upfront or annually only; minimum purchase requirement of 100 licenses (enforced at the SKU level)
  • There's no EOS price list preview
  • SKUs available on EOS price list on June 1, 2025
July 1: E5 Security and E5 Compliance mini suite three-year SKUs
  • Microsoft 365 E5 Security mini suite
  • Microsoft 365 E5 Compliance mini suite

New promotions for three-year subscriptions

To help you transition customers from on-premises solutions or upgrade from Microsoft Office 365, we're launching new 10% discount promotions for new-to-E3 or new-to-E5 customers on the new CSP three-year subscription terms. Plus, we're extending the 15% discount promotion for Microsoft 365 Copilot in CSP through June 30, 2025.

Live on June 9: Microsoft 365 E3 and E5 promotions
  • Offers: E3 and E5 with and without Teams
  • Three-year term
  • Upfront and annual billing options
  • For new-to-offer customers only
  • Minimum 100 licenses, maximum 2,400 licenses
  • Available to all markets
  • Promotions run June 9, 2025–December 31, 2025
Live on July 1: E5 Security and E5 Compliance mini suite promotion
  • Offers: E5 Security and E5 Compliance
  • Three-year term
  • Upfront and annual billing options
  • For new-to-offer customers only
  • Minimum 100 licenses, maximum 1 million licenses
  • Available to all markets
  • Promotions run July 1, 2025–December 31, 2025

Note

Update: The May 1, 2025, price list preview is now updated and includes the following SKUs for all markets:

  • Microsoft 365 E3 no Teams - Three-year SMC SKUs
  • Microsoft 365 E5 no Teams - Three-year SMC SKUs
  • Microsoft Teams Enterprise - Three-year SMC SKUs

These SKUs are generally available worldwide on June 1, 2025.

Next steps

Requirement updates for CSP partners

New Cloud Solution Provider (CSP) authorization requirements and CSP incentive eligibility requirements go into effect beginning October 1, 2025.

  • Date: May 1, 2025 (Updated May 5, 2025)
  • Workspace: General
  • Impacted audience: CSP partners

Updating CSP authorization requirements to support a thriving partner ecosystem

To ensure that we maintain a highly capable and compliant ecosystem of partners, we're implementing new authorization requirements for direct bill partners, distributors (formerly indirect providers), and indirect resellers in CSP.

Beginning October 1, 2025, updated CSP authorization eligibility requirements are enforced for direct bill partners, distributors, and indirect resellers. The enforcement date might vary based on current status (new applicant or existing).

  • New potential CSP partners must meet all listed FY26 requirements to be considered for authorization as a CSP partner.
  • Existing CSP partners must meet all listed FY26 requirements to maintain authorized status on the anniversary month of their first tenant authorization.
FY26 Direct bill partner requirements

FY26 direct bill Partners must:

  • Transact as an indirect reseller for at least 12 months before applying to become a direct bill partner.
  • Complete business vetting.
  • Have a minimum of 1 million USD in CSP billed revenue at the Partner Global Account (PGA) level. The sales that make up your trailing 12 months (TTM) CSP revenue are subject to review and verification by Microsoft, and you may be asked to provide additional information.
  • Pass an automated assessment that measures operational capabilities, including billing, provisioning, compliance, customer support, and security.
  • Have an active Advanced Support or Premier Support for partners plan.
  • Complete the mandatory requirements of the Partner Center security score.
  • Have at least one Solutions Partner designation.
  • Accept the direct bill Microsoft Partner Agreement (MPA).
FY26 Distributor requirements

FY26 Distributors must:

FY26 Indirect reseller requirements

FY26 Indirect Resellers must:

Download the authorizations one-pager for more details about the changes.

Enhancing CSP incentives eligibility to align with authorization changes and solution areas

In FY26, we're introducing new eligibility requirements for CSP incentives to align with the CSP authorization changes, ensuring that direct bill partners and indirect resellers have capabilities aligned to a given solution area.

These requirements are based on either attaining Solutions Partner designations or your partner capability score in a given solution area, as well as a revenue threshold. This change goes into effect on October 1, 2025.

FY26 Direct bill partner requirements

FY26 direct bill Partners must:

  • Have CSP authorization.
  • Have $1 million USD TTM revenue at PGA.
  • Have at least one Solutions Partner designation for solution areas.
FY26 Distributor requirements

FY26 Distributors must:

  • Have CSP authorization.
FY26 Indirect Reseller requirements

FY26 Indirect Resellers must:

  • Have CSP authorization.
  • Have Solutions Partner designation for solution areas OR 25 partner capability points in each solution area.
  • Have $25,000 USD TTM revenue for all solution area incentives at PLA.

In FY26, CSP change of channel partner (COCP) activity is measured by Microsoft. Microsoft monitors COP partner activity regularly. Revenue, tenants, and subscriptions from CSP entities acquired, merged, or otherwise transitioned are explicitly monitored, effective from this announcement.

Microsoft doesn't pay incentives for revenue, tenant, subscription movements between CSP partners, as incentives aren't intended for CSP partner-to-CSP partner transfers. This doesn't apply to when Microsoft deauthorizes a CSP partner or when a CSP partner goes out of business.

Change of channel partner activity, as determined solely by Microsoft, might result in adjustment of incentive payments, claw back of previously paid incentives, and termination of the applicable incentive.

Update May 15 2025

This is an early policy signal as we evaluate how incentives should align with our shared goals: driving new customer acquisition, new growth, and value-added partner solutions.

At this time, no partner is impacted, and this language doesn't affect how incentives are currently earned. But COCP activity is being monitored.

Microsoft will assess COCP patterns across the ecosystem and incorporate partner feedback to inform future policy updates. As we gather data and feedback, we'll define clear enforcement criteria, including how COCP-related scenarios (for example, partner deauthorization, M&A events, bankruptcy, and so on.) might affect incentive eligibility.

For any future enforcement criteria established, we'll provide clear guidance, notify in advance prior to effect, and support in accordance with applicable incentive policy terms. We remain committed to engaging with partners to ensure readiness and transparency ahead of any future changes.

** Solution area for incentives eligibility defined as:

  • Modern Work incentives: Solutions Partner designation for Modern Work or Security
  • Business Applications incentives: Solutions Partner designation for Business Applications
  • Azure incentives: Solutions Partner designation for Data & AI (Azure), Digital & App Innovation (Azure), or Infrastructure (Azure)

Next Steps