The FY26 Partner Designation Restructuring Is Coming — Most Partners Aren't Ready


Microsoft's FY26 Partner Program changes represent the biggest transformation to the Microsoft AI Cloud Partner Program since the retirement of Silver and Gold competencies. In this episode of m365.fm, we explore what the new FY26 Partner Designation restructuring means for Microsoft partners, Managed Service Providers (MSPs), Cloud Solution Providers (CSPs), Independent Software Vendors (ISVs), and Azure consulting firms. You'll learn why Microsoft is consolidating solution areas, introducing new partner designations, expanding AI-focused opportunities, and fundamentally changing how partners are evaluated, discovered, and rewarded. If your business depends on Microsoft incentives, co-sell, Azure consumption, or marketplace visibility, understanding these changes is essential for remaining competitive.
WHY MICROSOFT IS RESTRUCTURING THE PARTNER PROGRAM
For years, Microsoft's partner ecosystem relied on six separate solution areas, creating fragmented partner strategies and making it difficult for Microsoft sellers to identify true delivery expertise. FY26 changes that completely. This episode explains why Microsoft is consolidating its commercial solution areas, how AI Business Solutions and Cloud & AI Platforms reshape partner positioning, and why Security remains a dedicated specialization with significantly higher validation standards. You'll discover how Microsoft's entire go-to-market strategy is shifting toward measurable customer outcomes, AI transformation, cloud adoption, and deeper technical capability instead of simply collecting multiple partner badges.
NEW DESIGNATIONS, SPECIALIZATIONS, AND FRONTIER PARTNERS
FY26 introduces far more than new names. We examine the new Support Services, Distributor, Device, and Copilot-focused designations, along with Microsoft's new Frontier Partner status for elite organizations delivering end-to-end AI transformation. Learn what each designation unlocks, how Advanced Specializations become even more valuable, and why Microsoft's third-party validation process is becoming increasingly important. We also explain how these designations influence Partner Center visibility, Azure Marketplace discovery, Microsoft field seller recommendations, and future co-sell opportunities. Partners who understand these changes early will gain a significant competitive advantage while others struggle to adapt after renewal deadlines arrive.
INCENTIVES, AZURE ACCELERATE, ECIF, AND CO-SELL
The financial impact of FY26 could be substantial. This episode breaks down Azure Accelerate, increased Copilot and Power Platform funding, Security investment growth, Partner Earned Credit (PEC), ECIF (End Customer Investment Funds), and Microsoft's renewed focus on outcome-based partner incentives. You'll learn why Advanced Specializations are now the gateway to Microsoft's largest deployment investments, how proper attribution through PAL and CPOR drives Partner Capability Score improvements, and why many partners unknowingly leave hundreds of thousands of dollars in available funding on the table each year. We also explore how Marketplace transactions, Azure consumption, and co-sell activities are becoming increasingly interconnected under Microsoft's new commercial strategy.
BUILDING YOUR FY26 PARTNER STRATEGY
Rather than chasing every new badge, successful partners will need a deliberate roadmap. We explain how to choose your anchor designation, sequence additional designations efficiently, maximize overlapping qualification windows, and align certifications with future Advanced Specializations. You'll also learn how to update your Marketplace presence, modernize your messaging around Microsoft's new commercial solution areas, improve Partner Capability Score performance, and position your organization for long-term growth under the FY26 model. Whether you're an MSP, CSP, ISV, Azure consultancy, Security specialist, or Microsoft distributor, this episode provides practical guidance to help you prepare for Microsoft's largest partner ecosystem transformation in years and ensure your business is ready before the changes fully take effect.
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Here's the problem most partners don't see coming.
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You can hit every number on your scorecard,
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keep your customers happy and renew your designations on time
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and still wake up six months from now wondering
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why your co-sell pipeline dried up
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and your incentive access got cut.
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The FY26 restructuring isn't a minor program update.
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It's a big shift in how Microsoft evaluates partners,
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how incentives flow,
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and how field sellers find you in the system.
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Most partners are still running on the old playbook,
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silver, gold, six solution areas,
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same motions they've been using for years.
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And that's exactly the problem.
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If you don't understand the new structure,
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you're already behind on co-sell eligibility,
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missing incentive access,
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and the window to prepare is closing faster
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than most partners realize.
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This isn't just a rename,
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it's a re-architecture of how Microsoft invests
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in its partner ecosystem.
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And the partners who treat it like one
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will be the ones who capture the growth.
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The old model and why it broke.
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So let's talk about what's changing and why.
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Right now the program runs on six solution areas,
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modern work, business applications, data and AI,
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digital and app innovation, infrastructure and security.
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To earn a solutions partner designation in any of these,
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you need a partner capability score of 70 out of 100 points
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across performance, skilling, and customer success.
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That's been the formula for a while.
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The problem is, this model created too much fragmentation.
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Partners stacked badges across multiple areas
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without building real capability in any single one.
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And on Microsoft's side, they couldn't focus,
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they go to market investments.
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You'd have a partner with a modern work designation,
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a security designation, and an infrastructure designation.
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But when a Microsoft seller looked at that partner,
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they couldn't tell where the real depth was.
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Microsoft needed better alignment
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between partner qualifications and actual delivery outcomes,
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so they could know which partners could deliver
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on the solution plays they were building
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their field motions around.
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The six area model just wasn't giving them that clarity.
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The FY26 restructuring, six becomes three.
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Here's the shift most partners don't see coming.
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Microsoft consolidated six solution areas into three,
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and that changes how you position yourself completely.
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The first new area is AI Business Solutions,
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which combines modern work and business applications
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into one commercial solution area.
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Copilot and Agentec AI are the center of gravity here.
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Every solution play, every incentive program,
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every seller motion in this area
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is built around AI-driven productivity
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and business process transformation.
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If your practice sits in modern work or business applications,
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you need to start thinking about how your capabilities
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map to AI outcomes, because that's how Microsoft
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is going to surface you to field sellers.
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The second area is Cloud and AI platforms.
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This combines all three Azure areas, data and AI,
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digital and app innovation and infrastructure,
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into a single unified playbook, migration, modernization,
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data platforms, AI apps, it's all under one roof now,
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and the incentive structure reflects that.
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Microsoft rolled out Azure Accelerate,
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a unified program that combines, migrate and modernize,
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innovate and Cloud Accelerate factory into one offering
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with a 70% year over year investment increase.
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But that funding is tied to having
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the right Azure designations and specializations.
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If you're an Azure partner,
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you can't afford to be spread thin
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across three different Azure badges anymore.
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You need to concentrate where your capability is strongest.
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Security stays as its own standalone area,
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but the validation requirements are getting tighter
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with third party audits, deeper performance metrics
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and stricter skilling thresholds.
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Microsoft is signaling that security partners
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need to be independently verified, not just self attested.
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Now here's what most partners miss.
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Your old designation strategy may not map
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cleanly to these three new areas.
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If you build a modern work practice
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and a separate business applications practice,
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those are now under AI business solutions
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and you may need to rethink how you demonstrate capability
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in that combined space.
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If you had a data and AI designation
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and an infrastructure designation,
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those are now under cloud and AI platforms
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and you need to decide where your anchor is.
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Microsoft is aligning every solution,
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play every incentive program
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and every cell emotion around these three areas.
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Not the old six, the partners who understand this now
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will have a six to 12 month head start
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on everyone waiting for the official changes
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to hit their renewal.
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The new designations and what they unlock,
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but it's not just consolidation.
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Microsoft is introducing entirely new designations
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that most partners haven't heard about yet
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and each one unlocks a different type of access.
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Take the support services designation.
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It's for partners who deliver high quality customer support
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across Microsoft products
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and it's measured on hard metrics, escalation rates,
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response times and customer satisfaction scores above 90%.
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If you're running a managed services practice
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and your support operation is tight,
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this designation gives you a way to signal
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that capability directly to customers
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and Microsoft field sellers.
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Trusted tech was one of the first partners globally to earn it
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and they went through a third party operational assessment
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to validate their processes.
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That's the level of proof Microsoft is requiring now.
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Then there's the distributor designation,
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which validates indirect providers
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who deliver value added services to resellers.
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If you're a distributor, this is an optional.
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It's becoming the new baseline
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for how Microsoft surfaces you to the reseller ecosystem.
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The designation measures things like reseller enablement,
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support metrics and security capabilities.
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Distributors who earn it get customer facing badging
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as your credits, product licenses and incentive access,
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those who don't risk getting buried in search results
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when resellers are looking for partners.
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There are also two new device designations.
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One is for OEMs building modern hybrid ready Windows devices.
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The other is for partners who sell
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and deploy Windows commercial devices,
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including co-pilot plus PCs
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across the full deployment lifecycle.
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These are designed to capture the Windows 10 refresh cycle,
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accelerate Microsoft 365 adoption
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and build trusted relationships through secure AI ready hardware.
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If device deployment is part of your business,
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these designations are going to become
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a competitive differentiator.
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The co-pilot specialization is already available.
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It signals deep expertise in Microsoft 365
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co-pilot, co-pilot studio and agent deployment.
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This one matters because every solution play
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in FY26 now positions co-pilot and agent AI as core components.
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If you don't have this specialization,
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you're going to struggle to get surfaced
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for AI-related co-cell opportunities.
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And then there's the Frontier Partner badge,
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the new top tier status.
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To earn it, you need all six solution designations
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plus three specific specializations.
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Microsoft describes it as signaling AI-first human led
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delivery capability.
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It's designed for partners who can deliver end-to-end AI
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transformation across the full Microsoft stack.
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Only a small number of partners will qualify initially
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and the gap between Frontier partners
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and everyone else is going to widen fast.
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Here's the thing about all these new badges.
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They directly influence how Microsoft surfaces you
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to field sellers and customers in the marketplace.
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When a Microsoft seller opens their internal tools
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to find a partner for a customer opportunity,
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the first filter is designation status.
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If you don't have the right designation
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for the right solution area, you don't show up.
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Period, the incentive implications.
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Now here's where it gets interesting.
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These designations unlock the biggest incentive increases
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Microsoft has ever put on the table.
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Take Azure Accelerate.
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Microsoft announced a 70% year-over-year increase
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in outcome-based investment for this unified program,
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which combines Azure Migrate and Modernize,
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Azure Innovate, and Cloud Accelerate Factory
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into one streamlined offering.
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The math is straightforward if you're managing
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a million dollars in annual Azure consumption.
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Partner-Earned Credit alone pays 15%
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on managed Azure consumption through Pay-L
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or DPR Attribution.
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That's $150,000 on a million dollar book of business
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or $750,000 at $5 million, and that's just one program.
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Co-pilot and power platform incentives are up 50% year-over-year,
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and Microsoft is betting big on AI adoption
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with real money behind it.
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The Co-pilot and Power Accelerate program covers
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envisioning workshops and deployment engagements
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with payouts ranging from $5,000 for smaller engagements
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up to $50,000 for larger deployments,
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and there's a $2 million global cap per partner.
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But here's the catch, you need a solutions partner designation
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in Modern Work or Security just to qualify.
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On top of an already significant base,
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security investment is up 15%.
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The security incentives span multiple engagement types,
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envisioning workshops, Sentinel Accelerator,
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Defender for Cloud Accelerator, and CSP Deployment Incentives,
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and each one requires an active security solutions partner
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designation and, in most cases,
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a specific advanced specialization.
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The Sentinel Accelerator alone pays $4,000 for activation,
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then scales up based on data ingestion volume
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at 200 gigabytes per day sustained,
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you're looking at $34,000 per engagement.
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Here's the number that should grab your attention.
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Across all three commercial solution areas,
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Microsoft is earmarking 70% of partner investments
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for the small medium enterprise and channel segment,
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not just enterprise, and that's a deliberate shift
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because Microsoft wants partners, serving SMB
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and mid-market customers to capture this funding.
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But there's a catch most partners, Miss Entirely.
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ECF funding and customer investment funds
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is gated behind advanced specializations,
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and no specialization means no access.
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ECF is where the biggest deal-level investments live.
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We're talking six-figure funding per deal
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for the right opportunities,
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but you can't even get nominated
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without an advanced specialization in place.
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The chain works like this.
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You earn an advanced specialization,
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which puts you on Microsoft's radar,
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00:08:53,680 --> 00:08:55,000
so a partner development manager
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00:08:55,000 --> 00:08:57,160
starts engaging you on customer opportunities,
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you build co-sale pipeline with net new cloud deals,
237
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Microsoft approves ECF investment,
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the ECF funded deployment generates
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00:09:04,320 --> 00:09:07,400
a zero consumption where your PAL attribution earns 15%,
240
00:09:07,400 --> 00:09:09,840
partner earned credit, your growing ACR strength
241
00:09:09,840 --> 00:09:13,280
in the PDM relationship, and the cycle accelerates.
242
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Partners who don't sequence their designation strategically
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are leaving $50,000 to $500,000 on the table annually?
244
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That's not an exaggeration.
245
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The difference between a partner who captures $300,000
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00:09:24,000 --> 00:09:25,120
in annual incentives,
247
00:09:25,120 --> 00:09:28,920
and one who captures $50,000 usually comes down to three things.
248
00:09:28,920 --> 00:09:31,200
Understanding how programs stack together,
249
00:09:31,200 --> 00:09:33,520
setting up all three attribution methods,
250
00:09:33,520 --> 00:09:35,640
and earning the advanced specializations
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that unlock the highest value funding.
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The sequencing strategy.
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00:09:39,400 --> 00:09:40,640
So how do you actually get there
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without spreading yourself too thin?
255
00:09:42,400 --> 00:09:44,760
That's the trap most partners fall into CC.
256
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They see six designations, three new areas,
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it doesn't specializations,
258
00:09:48,640 --> 00:09:50,720
and they try to chase everything at once,
259
00:09:50,720 --> 00:09:53,160
which is how you end up with a 45-point PCS
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00:09:53,160 --> 00:09:56,360
in four areas instead of a 70-in-1.
261
00:09:56,360 --> 00:09:58,040
The smart place starts with anchoring.
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Pick one solution area where your partner capability score
263
00:10:00,640 --> 00:10:03,480
is already strongest and lock that designation in first,
264
00:10:03,480 --> 00:10:05,880
because your first designation sets the anniversary date
265
00:10:05,880 --> 00:10:08,160
for every future designation you earn.
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If you earn modern work in November,
267
00:10:09,760 --> 00:10:12,520
then business applications in January, then security in March,
268
00:10:12,520 --> 00:10:14,680
all three will share that November anniversary,
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meaning you renew everything at once,
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00:10:16,400 --> 00:10:18,040
which is either a headache or an advantage
271
00:10:18,040 --> 00:10:19,440
depending on how you plan it.
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00:10:19,440 --> 00:10:21,440
The partners who sequence deliberately use this
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00:10:21,440 --> 00:10:22,920
to compress their renewal timelines
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00:10:22,920 --> 00:10:24,560
and reduce the administrative drag
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00:10:24,560 --> 00:10:27,400
of maintaining multiple designations on different cycles.
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00:10:27,400 --> 00:10:29,160
But if you're not close to 70 points yet,
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the 25-point capability threshold changes the game.
278
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Microsoft introduced this specifically
279
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to give partners a faster on-ramp.
280
00:10:35,680 --> 00:10:37,960
You can get 25 points in any solution area
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through skilling alone, like certifications,
282
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learning parts, and assessments,
283
00:10:41,760 --> 00:10:43,840
which is enough to qualify for certain benefits
284
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and incentive programs without needing the full designation.
285
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It's not a replacement for hitting 70,
286
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but it gets you in the game
287
00:10:49,960 --> 00:10:51,120
while you build the performance
288
00:10:51,120 --> 00:10:54,000
and customer success metrics you need to climb higher.
289
00:10:54,000 --> 00:10:56,200
Now here's the piece most partners skip entirely.
290
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You can't earn what you don't claim.
291
00:10:57,840 --> 00:10:59,320
Partner admin link needs to be set up
292
00:10:59,320 --> 00:11:00,560
on every Azure subscription
293
00:11:00,560 --> 00:11:02,280
where you're delivering managed services
294
00:11:02,280 --> 00:11:06,160
and CPOR claims need to be filed on every M365 deployment.
295
00:11:06,160 --> 00:11:07,800
These are the attribution mechanisms
296
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that make your work visible to Microsoft scoring engines
297
00:11:10,640 --> 00:11:13,680
and without them, your performance metrics are invisible.
298
00:11:13,680 --> 00:11:15,760
And here's the specific number that matters.
299
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CPOR earns double the designation points
300
00:11:18,080 --> 00:11:20,320
compared to CSP transaction credit alone.
301
00:11:20,320 --> 00:11:22,640
So if you're transacting M365 through CSP
302
00:11:22,640 --> 00:11:24,400
without filing CPOR claims,
303
00:11:24,400 --> 00:11:26,080
you're earning half the points you could be.
304
00:11:26,080 --> 00:11:28,320
And that's the difference between a six month path
305
00:11:28,320 --> 00:11:30,720
to designation and a 12 month path.
306
00:11:30,720 --> 00:11:33,880
The partners who move fastest use clustered qualification,
307
00:11:33,880 --> 00:11:36,200
instead of chasing one designation at a time,
308
00:11:36,200 --> 00:11:39,080
they build PCS in two or three areas simultaneously
309
00:11:39,080 --> 00:11:41,720
within the same five to six month qualification window.
310
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Here's how that works.
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The PCS evaluation window for unenrolled areas
312
00:11:46,080 --> 00:11:49,160
is the current month plus the previous five full calendar months.
313
00:11:49,160 --> 00:11:51,320
So you can stage your certifications, deployments
314
00:11:51,320 --> 00:11:53,040
and customer success activities
315
00:11:53,040 --> 00:11:55,760
so that multiple areas cross the 70 point threshold
316
00:11:55,760 --> 00:11:57,480
within overlapping windows.
317
00:11:57,480 --> 00:11:59,240
The certifications you earn for security
318
00:11:59,240 --> 00:12:00,840
often overlap with modern work
319
00:12:00,840 --> 00:12:03,320
and the Azure deployments you deliver for one customer
320
00:12:03,320 --> 00:12:05,960
can count toward infrastructure, data and AI
321
00:12:05,960 --> 00:12:08,280
and digital and app innovation simultaneously.
322
00:12:08,280 --> 00:12:09,600
You're not doing more work.
323
00:12:09,600 --> 00:12:12,600
You're just being intentional about which work counts where.
324
00:12:12,600 --> 00:12:15,000
Another approach is the specialization first lens,
325
00:12:15,000 --> 00:12:17,520
instead of asking which designation to earn first,
326
00:12:17,520 --> 00:12:19,440
ask which specialization you want to unlock
327
00:12:19,440 --> 00:12:23,080
because specializations are where the real revenue leverage lives.
328
00:12:23,080 --> 00:12:25,520
ECF funding as your accelerate engagements,
329
00:12:25,520 --> 00:12:28,080
co-sale prioritization, all of these are gated
330
00:12:28,080 --> 00:12:30,560
behind specific advanced specializations.
331
00:12:30,560 --> 00:12:32,480
So start from the specialization you want,
332
00:12:32,480 --> 00:12:35,080
like SAP on Azure, threat protection
333
00:12:35,080 --> 00:12:37,440
or analytics on Azure, then work backward
334
00:12:37,440 --> 00:12:39,360
to the designation that unlocks it.
335
00:12:39,360 --> 00:12:42,080
In most cases, you only need one of the required designations
336
00:12:42,080 --> 00:12:43,720
to pursue a specialization,
337
00:12:43,720 --> 00:12:46,960
even if that specialization spans multiple solution areas
338
00:12:46,960 --> 00:12:49,720
and that simplifies your sequencing dramatically.
339
00:12:49,720 --> 00:12:52,280
The partners who sequence deliberately renew faster,
340
00:12:52,280 --> 00:12:55,920
access incentives earlier and capture more co-sale opportunities.
341
00:12:55,920 --> 00:12:57,280
They're not doing more work,
342
00:12:57,280 --> 00:12:59,880
they're just doing the right work in the right order.
343
00:12:59,880 --> 00:13:03,160
Aligning your GTM motion, here's the thing about alignment.
344
00:13:03,160 --> 00:13:05,280
None of this matters if your go-to-market motion
345
00:13:05,280 --> 00:13:06,880
doesn't match the new structure.
346
00:13:06,880 --> 00:13:08,560
You could have every designation locked in,
347
00:13:08,560 --> 00:13:09,760
every specialization earned,
348
00:13:09,760 --> 00:13:11,680
every attribution method set up perfectly
349
00:13:11,680 --> 00:13:13,400
and still get ignored if you're messaging
350
00:13:13,400 --> 00:13:16,560
and marketplace presence don't reflect the new reality.
351
00:13:16,560 --> 00:13:18,320
Start with your messaging.
352
00:13:18,320 --> 00:13:21,000
If you're still leading with we're a gold partner,
353
00:13:21,000 --> 00:13:23,960
you're already behind because that language is obsolete.
354
00:13:23,960 --> 00:13:25,760
The shift is to something specific.
355
00:13:25,760 --> 00:13:28,200
We're a solutions partner for cloud and AI platforms
356
00:13:28,200 --> 00:13:31,880
or we're a solutions partner for AI business solutions.
357
00:13:31,880 --> 00:13:33,960
Specificity signals capability,
358
00:13:33,960 --> 00:13:36,440
so when a Microsoft field seller or customer hears you
359
00:13:36,440 --> 00:13:38,400
describe yourself by solution area,
360
00:13:38,400 --> 00:13:40,960
they immediately know what you do and where you deliver.
361
00:13:40,960 --> 00:13:42,680
Generic partner language gets you ignored.
362
00:13:42,680 --> 00:13:44,720
Your marketplace listings need the same treatment.
363
00:13:44,720 --> 00:13:47,560
Microsoft has unified, app source and as your marketplace
364
00:13:47,560 --> 00:13:48,920
into a single platform.
365
00:13:48,920 --> 00:13:52,080
So the taxonomy and the way customers and sellers search
366
00:13:52,080 --> 00:13:53,280
have both changed.
367
00:13:53,280 --> 00:13:55,840
If your listings still use the old solution area labels
368
00:13:55,840 --> 00:13:57,560
and keywords from FY25,
369
00:13:57,560 --> 00:13:59,320
they're getting buried in search results.
370
00:13:59,320 --> 00:14:01,080
And stay listings don't get surfaced,
371
00:14:01,080 --> 00:14:02,520
which means you're not getting discovered
372
00:14:02,520 --> 00:14:05,000
by the field sellers who are actively looking for partners
373
00:14:05,000 --> 00:14:06,360
to attach to their deals.
374
00:14:06,360 --> 00:14:08,640
Co-cell readiness requires something specific
375
00:14:08,640 --> 00:14:10,760
that most partners don't have.
376
00:14:10,760 --> 00:14:13,880
At least one referenceable client win per solution area.
377
00:14:13,880 --> 00:14:16,240
That's your entry ticket to Microsoft field sellers.
378
00:14:16,240 --> 00:14:17,960
When a seller opens their internal tools
379
00:14:17,960 --> 00:14:20,080
to find a partner for a custom opportunity,
380
00:14:20,080 --> 00:14:21,720
they're looking for partners who have proven
381
00:14:21,720 --> 00:14:24,000
they can deliver in that specific solution area.
382
00:14:24,000 --> 00:14:25,920
A generic case study doesn't cut it.
383
00:14:25,920 --> 00:14:27,920
You need a win that maps cleanly
384
00:14:27,920 --> 00:14:29,960
to the solution play the seller is running.
385
00:14:29,960 --> 00:14:33,600
The partner marketing center replaces the old GTM toolbox.
386
00:14:33,600 --> 00:14:36,400
It's an AI-powered platform for campaign creation,
387
00:14:36,400 --> 00:14:39,320
real-time performance tracking and solution play alignment.
388
00:14:39,320 --> 00:14:41,240
If you're still using the old toolbox,
389
00:14:41,240 --> 00:14:43,320
you're operating on outdated infrastructure.
390
00:14:43,320 --> 00:14:46,280
The new platform lets you create custom campaigns in minutes,
391
00:14:46,280 --> 00:14:48,800
align them to specific Microsoft solution plays
392
00:14:48,800 --> 00:14:50,640
and track performance in real time.
393
00:14:50,640 --> 00:14:52,640
Partners who adopted early get a real advantage
394
00:14:52,640 --> 00:14:54,600
in getting their messaging in front of the right people
395
00:14:54,600 --> 00:14:55,440
at the right time.
396
00:14:55,440 --> 00:14:59,200
Bottom line, your GTM should mirror Microsoft's own field priorities.
397
00:14:59,200 --> 00:15:01,640
Map your office to the FY26 solution plays.
398
00:15:01,640 --> 00:15:03,920
If Microsoft is leading with AI business solutions,
399
00:15:03,920 --> 00:15:06,280
your campaigns should lead with AI productivity
400
00:15:06,280 --> 00:15:07,840
and business process transformation.
401
00:15:07,840 --> 00:15:10,200
If they're pushing cloud and AI platforms,
402
00:15:10,200 --> 00:15:12,400
your messaging should center on migration,
403
00:15:12,400 --> 00:15:14,920
modernization and AI innovation.
404
00:15:14,920 --> 00:15:18,480
The partners who align their GTM to Microsoft's priorities
405
00:15:18,480 --> 00:15:20,000
get surfaced first.
406
00:15:20,000 --> 00:15:21,720
The ones who don't get buried.
407
00:15:21,720 --> 00:15:24,280
What different partners should do right now?
408
00:15:24,280 --> 00:15:26,960
Now let's get specific about what different types of partners
409
00:15:26,960 --> 00:15:29,360
should be doing today because the right move depends
410
00:15:29,360 --> 00:15:30,480
on your business model.
411
00:15:30,480 --> 00:15:33,480
If you're an MSP or CSP, your focus should be modern work
412
00:15:33,480 --> 00:15:34,480
and security.
413
00:15:34,480 --> 00:15:36,400
Bundle licensing with managed services.
414
00:15:36,400 --> 00:15:38,840
That's where the margin lives, not in the license markup.
415
00:15:38,840 --> 00:15:42,920
Use CPR on every single M365 deployment you touch.
416
00:15:42,920 --> 00:15:45,520
That double designation point advantage I mentioned earlier
417
00:15:45,520 --> 00:15:47,720
is your fastest path to hitting 70
418
00:15:47,720 --> 00:15:49,800
and target the SMB path specifically.
419
00:15:49,800 --> 00:15:52,080
It awards twice as many points per certification
420
00:15:52,080 --> 00:15:53,600
compared to the enterprise path.
421
00:15:53,600 --> 00:15:56,000
If your customer base is under 300 seats,
422
00:15:56,000 --> 00:15:58,080
you're leaving points on the table by not using it.
423
00:15:58,080 --> 00:16:00,280
If you're an ISV, your play is different.
424
00:16:00,280 --> 00:16:02,240
Pursue the certified software designations
425
00:16:02,240 --> 00:16:04,360
and the industry AI distinctions.
426
00:16:04,360 --> 00:16:06,680
Get your solution transactable on marketplace.
427
00:16:06,680 --> 00:16:09,720
That's the prerequisite for IP co-sell eligibility.
428
00:16:09,720 --> 00:16:13,280
Once you're transactable, target the $100,000 revenue threshold
429
00:16:13,280 --> 00:16:16,320
which unlocks Azure sponsorship tiers up to a million dollars.
430
00:16:16,320 --> 00:16:18,920
And the industry AI distinctions, healthcare, retail,
431
00:16:18,920 --> 00:16:22,240
financial services, those are your vertical differentiators.
432
00:16:22,240 --> 00:16:23,800
They signal to Microsoft field sellers
433
00:16:23,800 --> 00:16:25,600
that you understand their customers industry,
434
00:16:25,600 --> 00:16:27,000
not just their technology stack.
435
00:16:27,000 --> 00:16:28,840
If you're an Azure services partner,
436
00:16:28,840 --> 00:16:31,200
go deep on cloud and AI platforms.
437
00:16:31,200 --> 00:16:33,520
That's where the Azure Accelerate funding lives.
438
00:16:33,520 --> 00:16:36,360
Pursue the advanced specializations that unlock ECIF,
439
00:16:36,360 --> 00:16:39,240
like SIP on Azure, VMware or analytics.
440
00:16:39,240 --> 00:16:41,920
Those are the gates to six figure deal level investments.
441
00:16:41,920 --> 00:16:44,760
Don't spread yourself across all three Azure areas.
442
00:16:44,760 --> 00:16:46,280
Pick the specialization that matches
443
00:16:46,280 --> 00:16:49,000
your strongest delivery capability and go all in.
444
00:16:49,000 --> 00:16:49,880
If you're a distributor,
445
00:16:49,880 --> 00:16:52,240
start preparing for the new distributor designation now.
446
00:16:52,240 --> 00:16:53,800
It's coming later in FY26
447
00:16:53,800 --> 00:16:55,880
and the requirements are already taking shape.
448
00:16:55,880 --> 00:16:57,840
Security capabilities, support metrics,
449
00:16:57,840 --> 00:16:59,440
reseller enablement programs.
450
00:16:59,440 --> 00:17:01,400
Those are the categories Microsoft is measuring.
451
00:17:01,400 --> 00:17:03,800
If you don't have those documented and validated,
452
00:17:03,800 --> 00:17:06,080
you're going to be scrambling when the designation launches.
453
00:17:06,080 --> 00:17:08,120
And here's the one thing everyone should do,
454
00:17:08,120 --> 00:17:09,440
regardless of your model,
455
00:17:09,440 --> 00:17:12,000
audit your current partner capability score
456
00:17:12,000 --> 00:17:14,360
across all six solution areas today.
457
00:17:14,360 --> 00:17:15,520
Log into partner center
458
00:17:15,520 --> 00:17:18,400
and look at where you stand in modern work, business applications,
459
00:17:18,400 --> 00:17:20,720
data and AI, digital and app innovation,
460
00:17:20,720 --> 00:17:22,640
infrastructure and security.
461
00:17:22,640 --> 00:17:25,120
Know your numbers before the designation changes hit
462
00:17:25,120 --> 00:17:27,280
because once the consolidation takes effect,
463
00:17:27,280 --> 00:17:28,800
the old scoring models will shift.
464
00:17:28,800 --> 00:17:30,160
If you don't know your baseline,
465
00:17:30,160 --> 00:17:32,760
you won't know what you're losing or gaining.
466
00:17:32,760 --> 00:17:34,560
The first step, here's the thing,
467
00:17:34,560 --> 00:17:36,680
the first step is simpler than you think.
468
00:17:36,680 --> 00:17:38,680
The consolidation is already in market
469
00:17:38,680 --> 00:17:41,160
and the three commercial solution areas are live.
470
00:17:41,160 --> 00:17:43,840
The designation changes follow later in FY26,
471
00:17:43,840 --> 00:17:45,840
but the window to prepare is now not next quarter,
472
00:17:45,840 --> 00:17:47,200
not when your renewal comes up,
473
00:17:47,200 --> 00:17:49,200
but now log into partner center today,
474
00:17:49,200 --> 00:17:51,400
check your PCS across all six solution areas
475
00:17:51,400 --> 00:17:53,240
and identify your strongest anchor.
476
00:17:53,240 --> 00:17:55,400
Find the one area where your performance,
477
00:17:55,400 --> 00:17:58,600
skilling and customer success metrics are closest to 70.
478
00:17:58,600 --> 00:18:00,400
That's your first designation, so lock it in,
479
00:18:00,400 --> 00:18:02,880
don't try to boil the ocean, pick one area,
480
00:18:02,880 --> 00:18:06,320
get to 70 points, set your anniversary date and then expand.
481
00:18:06,320 --> 00:18:09,080
The partners who act now will have a six to 12 month head start
482
00:18:09,080 --> 00:18:11,000
on everyone waiting for the official changes,
483
00:18:11,000 --> 00:18:13,400
which means they'll have their anchor designation in place,
484
00:18:13,400 --> 00:18:14,960
their attribution method set up
485
00:18:14,960 --> 00:18:16,800
and their first specializations queued
486
00:18:16,800 --> 00:18:19,520
before most partners even realize the rules have changed.
487
00:18:19,520 --> 00:18:22,440
The gap between frontier partners and everyone else is widening
488
00:18:22,440 --> 00:18:24,200
and this is your chance to close it.
489
00:18:24,200 --> 00:18:26,000
So that's the FY26 restructuring.
490
00:18:26,000 --> 00:18:27,440
It's not a minor update.
491
00:18:27,440 --> 00:18:30,200
It's a major change in how Microsoft evaluates,
492
00:18:30,200 --> 00:18:32,200
rewards and surfaces partners.
493
00:18:32,200 --> 00:18:34,000
The partners who understand the new structure
494
00:18:34,000 --> 00:18:36,560
and sequence their designations strategically
495
00:18:36,560 --> 00:18:39,160
will capture the incentives, the co-sell access
496
00:18:39,160 --> 00:18:40,840
and the marketplace visibility,
497
00:18:40,840 --> 00:18:44,560
while the ones who don't will wonder where the opportunities went.
498
00:18:44,560 --> 00:18:47,240
Start with one anchor designation, set up your attribution
499
00:18:47,240 --> 00:18:48,200
and build from there.
500
00:18:48,200 --> 00:18:49,560
If you want the next breakdown,
501
00:18:49,560 --> 00:18:52,320
we're covering how to optimize your partner capability score
502
00:18:52,320 --> 00:18:54,480
step by step, so subscribe so you don't miss it.















