In today’s rapidly evolving landscape of AI-driven innovation, organizations of all types—ranging from law firms and retail shops to government offices and large multinational corporations—are undergoing significant transformations. This shift brings valuable opportunities for a wide partner ecosystem as businesses around the world increasingly seek expertise to connect more effectively to the cloud 🌐, integrate AI responsibly and securely 🤖, and fortify their defenses against cyber threats 🔐. Partners play a crucial role throughout the customer journey, enhancing the value of purchases with services and solutions that drive measurable business outcomes 📊.
As organizations place greater emphasis on customer choice, the Cloud Solution Provider (CSP) program has become instrumental in meeting the needs of Small and Midsize Customers (SMC) 💼. These customers look to trusted advisors who understand their unique requirements, delivering tailored solutions that align with their business goals 🎯. According to IDC data from October 2024, the Total Addressable Market (TAM) for small and midsize companies in FY25 is projected to reach $661 billion 💰, with cloud solutions comprising $467 billion of this market. This sector is expected to grow at a compound annual rate of 15% 📈 over the next four years, with cloud-related growth projected at 20%, particularly for businesses with fewer than 3,000 employees. Solution designations empower partners to efficiently scale their services, supporting these customers’ evolving needs in an era of rapid technological advancement ⚙️.
To ensure partners are fully supported, incentives have been aligned across the entire customer life cycle 🔄, enabling sustainable, profitable growth for businesses focused on SMC clients. In FY25, increased incentives now represent 70% of the total investment in partners serving the SMC segment 💸. These incentives are spread across six commercial solution areas, allowing partners to continually add value across the entire platform and achieve consistent, impactful results for SMC customers.
The Progressive Transformation of Enterprise Commerce Strategy
Starting January 1, 2025, a select portion of cloud Enterprise Agreements (EA) in direct markets will no longer be eligible for renewal under the current EA structure. From that date, customers impacted by this shift will be notified that renewing their EA is no longer an option ❌. Instead, the Microsoft Customer Agreement for Enterprise (MCA-E), the evolved digital successor to the traditional EA, will provide an optimized, streamlined approach for enterprise clients. Small and midsize customers (SMC) are advised to transition to either the CSP program or MCA-E, depending on their needs ⚖️.
For customers interested in a value-added support experience with a partner, the CSP program offers a collaborative approach 🤝. For those seeking a direct relationship with Microsoft and self-management of per-user purchases, the MCA-E is the recommended option 🔧. With partner support, customers can navigate these changes confidently, assured they have the guidance to stay on a growth path 🌱.
As the enterprise commerce strategy advances, so do enterprise incentive offerings 💡. Partners hold a strategic role beyond facilitating EA transactions and supporting customers in adapting to their shifting needs in a rapidly advancing AI landscape. This shift emphasizes a customer-centric approach, where partners focus on value-added services that drive customer growth and success 🏆. Partners will continue to earn incentives for EA renewals and upselling and can access additional incentives through other outcome-based opportunities designed for strategic customer scenarios.
Empowering partners to serve public clients better
Recognizing the distinct needs and expertise required when partners sell Microsoft cloud products, particularly to public sector clients 🏛️, there will be an update to the Maximum Resale Price (MRP) calculation formula in channel partner agreements supporting volume licensing. This revised MRP formula is set to take effect in July 2025, ensuring that partners have the necessary tools and clarity to continue delivering value while navigating the evolving market dynamics.
Improving payment options for more convenience
To better support partners in meeting customer needs, a new monthly billing plan 🗓️ will be introduced starting December 1, 2024, for annual subscriptions to Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Services. This option will allow customers to pay on a monthly basis for their annual subscriptions, though it will be priced 5% higher than the upfront annual billing option 💳.
Additionally, a pricing update will take effect on April 1, 2025, which will standardize the billing structure for all other products with per-user monthly billing plans for annual subscriptions. This change will apply to all new and renewing monthly billing plans, across all new commerce purchasing channels, including direct online, CSP, and MCA-E 🔄.
Empowering partners to prepare customers for AI advancement
A new promotion is launching to help partners get customers AI-ready 🤖 with Microsoft 365 E5, which includes productivity apps along with advanced security, compliance, and analytics features. Starting January 1, 2025, partners can receive a 15% discount 💸 on the net price of Microsoft 365 E5 annual commitment subscriptions for eligible customers. This promotion is available worldwide 🌍 for new customers purchasing between 1 and 2,400 licenses.
The promotion will run through June 30, 2025, and additional details will be provided in the Global Promo Readiness Guide 📚, available starting January 1.
Commitment to Microsoft partners in the AI era
In response to the rapid advancements in AI and the evolving needs of customers and partners, a significant update is being introduced to ensure continued support and protection 🛡️. Building on the Copilot Copyright Commitment (CCC) that was initially introduced for customers, this protection is now being extended to reseller partners as well. This means that resellers can confidently assure their customers that they will receive the same CCC protections as those who purchase qualifying Copilot offerings directly ✅.
Over the next few months, reseller agreements—both for new and existing partners—will be updated to include CCC protection for qualifying claims. This update is designed to help partners focus on delivering value without worrying about the potential risks of unreasonable litigation costs related to CCC claims ⚖️. To further simplify the process, a more streamlined experience will be introduced for submitting and managing qualifying CCC claims, with full details on the updated process expected in the near future 📝.
Microsoft is a partner-led company
For over 40 years, the partner ecosystem has been a vital force in helping organizations of all sizes connect with customers and succeed with Microsoft solutions 💼. As technology, buying behaviors, and customer needs continue to evolve, one thing remains unchanged—the power of collaboration 🤝. The core objective has always been to enhance the customer experience while delivering lasting value across the entire journey.
Partners play a key role in driving business transformation, especially as AI becomes more integrated into solutions 🌐. It's inspiring to see the profound impact partners are making across industries, communities, and organizations of all sizes 💡. Moving forward, the partnership will continue to thrive as both sides work together to empower individuals and businesses to achieve more 🌟.
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