July 15, 2026
The Microsoft Partner Journey Explained
The Microsoft AI Cloud Partner Program has evolved dramatically, but many partners are still approaching it with an outdated mindset. In this episode of m365.fm, we break down the complete Microsoft Partner Journey and explain how organizations can progress from basic membership to Solutions Partner designation and ultimately Advanced Specialization. You'll learn why the old Silver and Gold competency model has been replaced, how Microsoft's focus shifted from certifications to measurable customer outcomes, and what that means for partners looking to grow their business in 2026 and beyond. Whether you're just joining the Microsoft ecosystem or planning your next designation, this episode provides a practical roadmap for building a profitable long-term Microsoft partnership.
FROM MEMBERSHIP TO BUSINESS GROWTH
Every Microsoft partner starts with a simple membership, but very few understand how to turn that first step into a sustainable growth strategy. We explain the different membership packages, what benefits they include, and why membership alone does not unlock the real financial opportunities available within the Microsoft ecosystem. You'll discover how product benefits, Azure credits, internal use licenses, and Microsoft Learn resources fit into the bigger picture while learning why many partners stall before reaching the next level. The episode also explores how the Microsoft Cloud Partner Program evolved into the Microsoft AI Cloud Partner Program and why customer success, cloud consumption, and adoption have become the primary metrics for partner recognition.
UNDERSTANDING SOLUTIONS PARTNER DESIGNATIONS
The heart of the Microsoft Partner Journey is earning a Solutions Partner designation. We explain how the Partner Capability Score works, how Performance, Skilling, and Customer Success contribute to qualification, and why customer usage is now more important than simply collecting certifications. You'll also learn about the six current solution areas, Microsoft's FY26 consolidation plans, annual designation costs, qualification timelines, and how to select the right designation based on your existing customer base instead of chasing every available badge. If you've ever wondered how Microsoft evaluates partner capability today, this episode gives you the complete picture.
SPECIALIZATIONS, INCENTIVES, AND MARKET ADVANTAGE
Once you've earned a designation, the real opportunity begins with Specializations and Advanced Specializations. We explain how these audited certifications unlock significantly larger incentives, deployment funding, technical assessments, co-sell opportunities, and exclusive Microsoft programs. You'll also discover how backend incentives work, how Market Development Funds (MDF) are earned and managed, why many partners unknowingly leave money unclaimed, and how internal use rights can dramatically reduce operational costs. The episode also covers Partner Center, MCI engagements, co-op funding, Azure incentives, and the operational processes successful partners use to maximize their Microsoft investment.
BUILDING YOUR MICROSOFT PARTNER ROADMAP
The episode concludes with a practical roadmap for progressing through every stage of the Microsoft Partner Journey. Learn how to evaluate your current Partner Capability Score, identify the right solution area, improve customer success metrics, plan your first specialization, enroll in available incentive programs, and create an operational process that continuously grows your Microsoft business. Instead of treating the partner program as a compliance exercise, you'll learn how leading partners transform it into a strategic growth engine that generates recurring revenue, stronger Microsoft relationships, and long-term competitive advantage. Whether you're an MSP, CSP, Systems Integrator, ISV, or consulting organization, this episode provides the blueprint for successfully navigating the Microsoft Partner ecosystem in the AI era.
Become a supporter of this podcast: https://www.spreaker.com/podcast/m365-fm-modern-work-security-and-productivity-with-microsoft-365--6704921/support.
🚀 Want to be part of m365.fm?
Then stop just listening… and start showing up.
👉 Connect with me on LinkedIn and let’s make something happen:
- 🎙️ Be a podcast guest and share your story
- 🎧 Host your own episode (yes, seriously)
- 💡 Pitch topics the community actually wants to hear
- 🌍 Build your personal brand in the Microsoft 365 space
This isn’t just a podcast — it’s a platform for people who take action.
🔥 Most people wait. The best ones don’t.
👉 Connect with me on LinkedIn and send me a message:
"I want in"
Let’s build something awesome 👊
1
00:00:00,000 --> 00:00:02,260
Here's the thing, most partners don't see coming.
2
00:00:02,260 --> 00:00:04,680
You think the partner journey is about climbing tiers,
3
00:00:04,680 --> 00:00:07,500
silver to gold, gold to something shinier.
4
00:00:07,500 --> 00:00:08,900
That used to be how it worked,
5
00:00:08,900 --> 00:00:10,560
and most people still think that way,
6
00:00:10,560 --> 00:00:12,320
but the program doesn't work like that anymore.
7
00:00:12,320 --> 00:00:14,020
The real question is, what each badge actually
8
00:00:14,020 --> 00:00:15,280
unlocks for your business.
9
00:00:15,280 --> 00:00:16,960
You see a designation and you want it,
10
00:00:16,960 --> 00:00:18,620
Microsoft announces a new program
11
00:00:18,620 --> 00:00:20,120
and you rush to enroll.
12
00:00:20,120 --> 00:00:21,560
But nobody stops to ask,
13
00:00:21,560 --> 00:00:23,760
what does this actually do for my business?
14
00:00:23,760 --> 00:00:25,440
Here's the gap you need to understand.
15
00:00:25,440 --> 00:00:28,220
The program changed completely in 2022,
16
00:00:28,220 --> 00:00:29,400
silver and gold are gone.
17
00:00:29,400 --> 00:00:32,740
The Microsoft Cloud Partner Program launched in October 2022,
18
00:00:32,740 --> 00:00:36,440
then rebranded to the AI Cloud Partner Program in July 2023.
19
00:00:36,440 --> 00:00:39,420
But most partners are still operating like it's 2021,
20
00:00:39,420 --> 00:00:42,000
thinking in terms of old competencies and old benefits,
21
00:00:42,000 --> 00:00:43,480
and that's costing them real money.
22
00:00:43,480 --> 00:00:45,080
So here's what we're covering today.
23
00:00:45,080 --> 00:00:47,240
The partner journey has three distinct layers,
24
00:00:47,240 --> 00:00:49,300
not a ladder with rungs, but three layers,
25
00:00:49,300 --> 00:00:52,660
membership, solutions, partner designation, and specialization.
26
00:00:52,660 --> 00:00:54,560
Each layer unlocks something different
27
00:00:54,560 --> 00:00:56,960
and most partners never get past layer one.
28
00:00:56,960 --> 00:00:58,240
Stick with this.
29
00:00:58,240 --> 00:01:01,320
It changes how you think about your partnership with Microsoft.
30
00:01:01,320 --> 00:01:04,560
Why the program changed and why it matters?
31
00:01:04,560 --> 00:01:06,340
Silver and gold are officially gone.
32
00:01:06,340 --> 00:01:08,680
The last renewals hit January 2025.
33
00:01:08,680 --> 00:01:11,160
If you're still running on legacy silver or gold benefits,
34
00:01:11,160 --> 00:01:13,800
your incentives run through September 2025,
35
00:01:13,800 --> 00:01:17,200
and then that's it, no more renewals, no more extensions.
36
00:01:17,200 --> 00:01:19,240
The old program is done, Microsoft killed it
37
00:01:19,240 --> 00:01:21,440
because the old model measured the wrong thing.
38
00:01:21,440 --> 00:01:23,200
Silver and gold were about inputs.
39
00:01:23,200 --> 00:01:25,920
How many search your team holds, how many exams they passed,
40
00:01:25,920 --> 00:01:27,400
how many competencies you stacked.
41
00:01:27,400 --> 00:01:28,800
It was a checkbox game.
42
00:01:28,800 --> 00:01:30,480
You could load up on certifications,
43
00:01:30,480 --> 00:01:33,680
never deliver a thing, and still call yourself a gold partner.
44
00:01:33,680 --> 00:01:35,600
The new model measures outputs.
45
00:01:35,600 --> 00:01:38,480
Not what your team knows, but what your customers actually do.
46
00:01:38,480 --> 00:01:40,580
How much of the Microsoft cloud are they consuming?
47
00:01:40,580 --> 00:01:41,880
Are they using what you sold them?
48
00:01:41,880 --> 00:01:42,720
Are they growing?
49
00:01:42,720 --> 00:01:43,560
That's what matters now.
50
00:01:43,560 --> 00:01:47,520
Microsoft retired the Microsoft Partner Network in October 2022,
51
00:01:47,520 --> 00:01:49,880
launching the Microsoft Cloud Partner Program,
52
00:01:49,880 --> 00:01:53,920
then rebranded to the AI Cloud Partner Program in July 2023.
53
00:01:53,920 --> 00:01:56,640
The name changed, but the direction stayed the same.
54
00:01:56,640 --> 00:01:58,960
Everything now points to customer outcomes.
55
00:01:58,960 --> 00:02:00,640
Why does this shift matter to you?
56
00:02:00,640 --> 00:02:02,960
The rules for getting recognized change completely.
57
00:02:02,960 --> 00:02:04,720
You can't coast on old certifications,
58
00:02:04,720 --> 00:02:07,240
you can't rest on deals you close three years ago.
59
00:02:07,240 --> 00:02:08,960
The program is designed to measure
60
00:02:08,960 --> 00:02:11,360
what you're doing right now with real customers
61
00:02:11,360 --> 00:02:12,480
in the Microsoft Cloud.
62
00:02:12,480 --> 00:02:15,240
If you're not driving consumption, you're not progressing.
63
00:02:15,240 --> 00:02:17,680
So what does the new journey actually look like?
64
00:02:17,680 --> 00:02:21,120
It starts with the layer most partners skip past too fast.
65
00:02:21,120 --> 00:02:24,120
The membership layer, where most partners start install.
66
00:02:24,120 --> 00:02:25,400
Membership is the entry point.
67
00:02:25,400 --> 00:02:26,480
You go to partner.
68
00:02:26,480 --> 00:02:29,720
Microsoft.com, fill out a form, get an MPN ID,
69
00:02:29,720 --> 00:02:30,360
and that's it.
70
00:02:30,360 --> 00:02:33,120
You're a Microsoft partner with access to marketing resources
71
00:02:33,120 --> 00:02:35,360
and Microsoft learn but not much else.
72
00:02:35,360 --> 00:02:37,960
You're in the system, but you're not really doing anything yet.
73
00:02:37,960 --> 00:02:40,800
From there, Microsoft offers three paid membership bundles
74
00:02:40,800 --> 00:02:45,800
starting at about $3.50 a year for Partner Launch, $925 for Partner Success Core,
75
00:02:45,800 --> 00:02:49,800
and $4,125 for Partner Success Expanded.
76
00:02:49,800 --> 00:02:51,920
Each one unlocks more product benefits.
77
00:02:51,920 --> 00:02:55,120
Launch gives you starter Azure credits and small license bundles.
78
00:02:55,120 --> 00:02:57,160
Enough to poke around, build a demo environment,
79
00:02:57,160 --> 00:02:58,640
maybe train a couple people.
80
00:02:58,640 --> 00:03:02,240
Core bumps that up to roughly $2,400 in Azure credits per year,
81
00:03:02,240 --> 00:03:06,400
plus 15 user grounds for things like Microsoft 365 Business Premium,
82
00:03:06,400 --> 00:03:08,600
Dynamics 365 Defender and Entra ID.
83
00:03:08,600 --> 00:03:10,360
It's a solid package for a small team.
84
00:03:10,360 --> 00:03:13,240
Expanded provides significantly higher quantities across the board
85
00:03:13,240 --> 00:03:15,800
with more Azure credits, more user licenses,
86
00:03:15,800 --> 00:03:17,480
and more sandbox environments.
87
00:03:17,480 --> 00:03:19,120
It's the bundle that starts to look like
88
00:03:19,120 --> 00:03:21,880
what old silver partners used to get.
89
00:03:21,880 --> 00:03:22,760
But here's the problem.
90
00:03:22,760 --> 00:03:26,040
Most partners stop here buying the cheapest bundle and calling it a day.
91
00:03:26,040 --> 00:03:27,440
They never move past membership,
92
00:03:27,440 --> 00:03:29,960
and membership alone doesn't unlock the real economics,
93
00:03:29,960 --> 00:03:32,720
no backend incentives, no co-op funding, no MDF.
94
00:03:32,720 --> 00:03:34,040
You're getting product benefits,
95
00:03:34,040 --> 00:03:36,920
but you're not getting paid for the business you're bringing to Microsoft.
96
00:03:36,920 --> 00:03:39,800
To get to the real money, you need to move to the next layer,
97
00:03:39,800 --> 00:03:41,840
the solutions partner designation.
98
00:03:41,840 --> 00:03:44,360
What a solutions partner designation actually requires.
99
00:03:44,360 --> 00:03:46,640
So what does it take to get a solutions partner designation?
100
00:03:46,640 --> 00:03:49,760
It all comes down to one number, your partner capability score.
101
00:03:49,760 --> 00:03:51,200
You need 70 points out of 100,
102
00:03:51,200 --> 00:03:53,360
with at least one point in every single symmetric.
103
00:03:53,360 --> 00:03:54,720
You can't have a zero anywhere.
104
00:03:54,720 --> 00:03:57,360
Score 90 points total, but have a zero in one category.
105
00:03:57,360 --> 00:03:59,440
You don't qualify, that's the rule.
106
00:03:59,440 --> 00:04:01,200
Your score comes from three categories.
107
00:04:01,200 --> 00:04:04,640
Performance, worth 20 points, measuring net customer ads.
108
00:04:04,640 --> 00:04:07,520
Are you bringing new customers into the Microsoft ecosystem?
109
00:04:07,520 --> 00:04:10,640
Skilling worth 25 points based on your team's intermediate
110
00:04:10,640 --> 00:04:12,840
and advanced certifications.
111
00:04:12,840 --> 00:04:16,480
And customer success worth 55 points, more than half your entire score.
112
00:04:16,480 --> 00:04:18,640
Customer success breaks into two pieces,
113
00:04:18,640 --> 00:04:21,760
usage growth, which tracks whether your existing customers are using
114
00:04:21,760 --> 00:04:23,760
more of the Microsoft cloud than last year,
115
00:04:23,760 --> 00:04:27,400
and deployments, which measures whether you're landing new workloads with active use,
116
00:04:27,400 --> 00:04:30,600
meaning more than 40% of licenses are actually being used.
117
00:04:30,600 --> 00:04:32,600
That 40% threshold is the shelf way killer.
118
00:04:32,600 --> 00:04:35,080
Microsoft doesn't want you selling licenses that sit in a drawer.
119
00:04:35,080 --> 00:04:36,360
They want you driving real consumption.
120
00:04:36,360 --> 00:04:38,960
This is the biggest shift from silver and gold.
121
00:04:38,960 --> 00:04:42,920
In the old program, you could load up on certifications, stack competencies,
122
00:04:42,920 --> 00:04:46,000
and never worry about whether your customers actually use the products.
123
00:04:46,000 --> 00:04:49,920
You could be a gold partner with 135 people and zero customer adoption.
124
00:04:49,920 --> 00:04:50,960
That doesn't work anymore.
125
00:04:50,960 --> 00:04:54,160
You can't ignore usage growth and expect to hold a designation.
126
00:04:54,160 --> 00:04:59,520
The cost to hold a solutions partner designation is $4,730 per year per designation.
127
00:04:59,520 --> 00:05:04,000
Two designations cost 9,160, three cost 14,090.
128
00:05:04,000 --> 00:05:07,080
It adds up, but the incentives you unlock at this layer
129
00:05:07,080 --> 00:05:09,880
more than cover the cost if you're driving real business.
130
00:05:09,880 --> 00:05:11,360
Here's how the timing works.
131
00:05:11,360 --> 00:05:13,600
If you're not yet enrolled in a solution area,
132
00:05:13,600 --> 00:05:17,560
your qualification window is the current month plus the previous five full months,
133
00:05:17,560 --> 00:05:19,000
a rolling six month window.
134
00:05:19,000 --> 00:05:23,640
If you're already enrolled, your window is your anniversary date plus a 30 day renewal window.
135
00:05:23,640 --> 00:05:27,040
Once you qualify and purchase, the designation is valid for 13 months,
136
00:05:27,040 --> 00:05:28,760
including that one month renewal window.
137
00:05:28,760 --> 00:05:31,400
So you've got about a year before you need to re-qualify.
138
00:05:31,400 --> 00:05:34,760
The designation you pursue depends on which solution area fits your business.
139
00:05:34,760 --> 00:05:37,720
So let's look at what those areas actually are.
140
00:05:37,720 --> 00:05:40,720
The six solution areas and the consolidation coming.
141
00:05:40,720 --> 00:05:42,640
Here's the thing about the six designations.
142
00:05:42,640 --> 00:05:45,360
Today you've got six solutions partner designations.
143
00:05:45,360 --> 00:05:48,800
Business applications, data and AI, digital and app innovation,
144
00:05:48,800 --> 00:05:51,080
infrastructure, security and modern work.
145
00:05:51,080 --> 00:05:55,280
Three of those are Azure aligned, meaning data and AI, digital and app innovation
146
00:05:55,280 --> 00:05:59,040
and infrastructure all tied directly to Azure workloads.
147
00:05:59,040 --> 00:06:03,840
The other three are non-Azure business applications maps to Dynamics 365,
148
00:06:03,840 --> 00:06:07,800
modern work maps to Microsoft 365 and security sits across both.
149
00:06:07,800 --> 00:06:10,080
Now here's something coming that most partners don't know about.
150
00:06:10,080 --> 00:06:15,160
In FY26, Microsoft is consolidating from six solution areas down to three commercial solution areas.
151
00:06:15,160 --> 00:06:19,000
They haven't published the exact new names yet, but the direction is clear.
152
00:06:19,000 --> 00:06:22,080
Fewer, broader areas that align to customer demand.
153
00:06:22,080 --> 00:06:26,480
The idea is to make it easier for you to match your capabilities to what the market actually wants.
154
00:06:26,480 --> 00:06:29,520
For most partners, the smart play is to start with modern work.
155
00:06:29,520 --> 00:06:34,640
You're already selling Microsoft 365 and you already have customers using Exchange Teams SharePoint.
156
00:06:34,640 --> 00:06:38,400
The path to a modern work designation is the shortest because you're already doing the work
157
00:06:38,400 --> 00:06:39,880
and just need to formalize it.
158
00:06:39,880 --> 00:06:41,640
From there, pick one second designation.
159
00:06:41,640 --> 00:06:45,680
If you're strong in Azure, go with infrastructure or data and AI.
160
00:06:45,680 --> 00:06:48,280
If you're seeing demand around security, go with security,
161
00:06:48,280 --> 00:06:52,320
instead of chasing all six at once, pick two, get good at them and build from there.
162
00:06:52,320 --> 00:06:54,080
Once you know which designation to pursue,
163
00:06:54,080 --> 00:06:56,760
the next question is what it actually unlocks for you?
164
00:06:56,760 --> 00:06:58,440
What solutions partner unlocks?
165
00:06:58,440 --> 00:06:59,760
Benefits and incentives.
166
00:06:59,760 --> 00:07:03,320
So you've done the work, hit the 70 point threshold and bought the designation.
167
00:07:03,320 --> 00:07:04,640
Let's look at what you actually get.
168
00:07:04,640 --> 00:07:05,720
First, the big one.
169
00:07:05,720 --> 00:07:07,840
Solutions partner turns on backend incentives,
170
00:07:07,840 --> 00:07:11,400
which are residual payments from Microsoft on top of what you make from licensing.
171
00:07:11,400 --> 00:07:15,400
On eligible workloads, you typically get 4% to 20% backend incentives,
172
00:07:15,400 --> 00:07:17,680
depending on what you're selling, which program is active.
173
00:07:17,680 --> 00:07:18,800
This is not margin.
174
00:07:18,800 --> 00:07:22,320
Margin is the discount you get from your distributor when you buy a license.
175
00:07:22,320 --> 00:07:24,640
While backend incentives come from Microsoft directly,
176
00:07:24,640 --> 00:07:27,840
based on what your customers consume, then there are the product benefits.
177
00:07:27,840 --> 00:07:29,800
If you hold a modern work or security designation,
178
00:07:29,800 --> 00:07:34,560
you get 100 Microsoft 365 E3 or E5 licenses to run your own business,
179
00:07:34,560 --> 00:07:38,440
plus somewhere between $500 and $1,000 per month in Azure credits,
180
00:07:38,440 --> 00:07:40,520
depending on the designation.
181
00:07:40,520 --> 00:07:43,560
You also get 50 hours of technical pre-sales and deployment support.
182
00:07:43,560 --> 00:07:45,400
That means when you're in a complex deal,
183
00:07:45,400 --> 00:07:48,440
you can bring in Microsoft architects to help design the solution.
184
00:07:48,440 --> 00:07:51,280
That alone is worth more than the cost of the designation.
185
00:07:51,280 --> 00:07:53,520
You also get access to go-to-market resources like
186
00:07:53,520 --> 00:07:57,080
Cossal eligibility, partner badging and marketplace listing.
187
00:07:57,080 --> 00:08:00,000
These are the things that make you visible to Microsoft's own sales teams.
188
00:08:00,000 --> 00:08:02,200
Without a designation, you're invisible to them,
189
00:08:02,200 --> 00:08:04,360
but with one, you show up in their systems.
190
00:08:04,360 --> 00:08:05,920
And there's the internal use rights piece,
191
00:08:05,920 --> 00:08:09,840
and you can run your own business on Microsoft's stack at a fraction of the cost.
192
00:08:09,840 --> 00:08:11,160
And that's not a small thing.
193
00:08:11,160 --> 00:08:15,840
If you're a 50 person firm, having 103 E3 licenses covers your entire staff,
194
00:08:15,840 --> 00:08:18,640
your Azure credits cover your dev and test environments,
195
00:08:18,640 --> 00:08:21,920
and your dynamic sandboxes let you build practice demos.
196
00:08:21,920 --> 00:08:24,960
You're essentially running your business on Microsoft's time.
197
00:08:24,960 --> 00:08:26,120
Now here's the catch.
198
00:08:26,120 --> 00:08:28,520
Backend incentives accrue in six months increments,
199
00:08:28,520 --> 00:08:30,800
and how you get paid depends on volume.
200
00:08:30,800 --> 00:08:32,800
For earnings under $10,000 per period,
201
00:08:32,800 --> 00:08:35,320
Microsoft just cuts you a check every six months,
202
00:08:35,320 --> 00:08:37,480
simple and straightforward, no strings attached.
203
00:08:37,480 --> 00:08:39,760
For earnings over $10,000, it splits.
204
00:08:39,760 --> 00:08:43,360
60% comes as a check, and 40% goes into a co-op bucket,
205
00:08:43,360 --> 00:08:44,880
which is market development funds.
206
00:08:44,880 --> 00:08:47,280
You have six months to spend that money on approved activities
207
00:08:47,280 --> 00:08:49,840
like marketing events, digital campaigns, certifications,
208
00:08:49,840 --> 00:08:53,000
ignite tickets and hotel and travel for Microsoft led events.
209
00:08:53,000 --> 00:08:55,000
If you don't spend it, Microsoft takes it back.
210
00:08:55,000 --> 00:08:57,480
Most partners have MDF sitting in that bucket right now,
211
00:08:57,480 --> 00:08:58,320
and don't even know it.
212
00:08:58,320 --> 00:09:01,600
There's a link in Partner Center under co-op management that shows your balance.
213
00:09:01,600 --> 00:09:05,080
If you've never clicked it, go check because you might be leaving money on the table.
214
00:09:05,080 --> 00:09:07,600
But the real money, the kind that changes your business,
215
00:09:07,600 --> 00:09:10,360
doesn't start until you move to the next layer.
216
00:09:10,360 --> 00:09:12,600
Specializations where the economics change.
217
00:09:12,600 --> 00:09:15,960
Specializations sit on top of your solutions partner designation.
218
00:09:15,960 --> 00:09:18,480
They approve of deep expertise in a specific scenario,
219
00:09:18,480 --> 00:09:20,440
not broad capability but auditable,
220
00:09:20,440 --> 00:09:23,400
verifiable depths that Microsoft or a third party validates.
221
00:09:23,400 --> 00:09:25,160
This isn't a check box exercise.
222
00:09:25,160 --> 00:09:27,080
The requirements are different from designations.
223
00:09:27,080 --> 00:09:30,160
Designations are self-reported through your partner capability score.
224
00:09:30,160 --> 00:09:32,040
Specializations, those get audited,
225
00:09:32,040 --> 00:09:34,000
you need to show real customer deployments,
226
00:09:34,000 --> 00:09:37,200
real consumption, real outcomes, how many can you stack?
227
00:09:37,200 --> 00:09:40,840
For Azure, data and AI, digital and app innovation infrastructure,
228
00:09:40,840 --> 00:09:43,840
you can count up to five for extra benefits per solution area.
229
00:09:43,840 --> 00:09:46,320
For business applications, modern work and security,
230
00:09:46,320 --> 00:09:47,680
the cap is three per area.
231
00:09:47,680 --> 00:09:49,080
So you can't just collect them all.
232
00:09:49,080 --> 00:09:51,560
You have to be strategic about which ones you pursue.
233
00:09:51,560 --> 00:09:53,360
Advanced specialization is the top tier.
234
00:09:53,360 --> 00:09:55,640
That's where Microsoft allocates the real resources,
235
00:09:55,640 --> 00:09:58,240
deployment funds, assessment money, bounties.
236
00:09:58,240 --> 00:09:59,400
These are not small numbers.
237
00:09:59,400 --> 00:10:00,880
Here's the math that matters.
238
00:10:00,880 --> 00:10:02,760
On a $100,000 Azure deal,
239
00:10:02,760 --> 00:10:06,800
a solutions partner might earn about $21,000 in first year incentives.
240
00:10:06,800 --> 00:10:08,600
That's back end incentives on the consumption
241
00:10:08,600 --> 00:10:10,600
plus whatever programs they're enrolled in.
242
00:10:10,600 --> 00:10:11,480
Decent, right?
243
00:10:11,480 --> 00:10:13,520
An advanced specialized partner on the same deal
244
00:10:13,520 --> 00:10:16,080
can earn up to $81,000 in the first year.
245
00:10:16,080 --> 00:10:18,600
The difference is $60,000 on a single deal.
246
00:10:18,600 --> 00:10:19,960
That's not a rounding error.
247
00:10:19,960 --> 00:10:22,200
It's the difference between a good year and a great year.
248
00:10:22,200 --> 00:10:23,720
Where does that extra money come from?
249
00:10:23,720 --> 00:10:26,040
Deployment funds that pay you to do the migration?
250
00:10:26,040 --> 00:10:29,080
Assessment fees that pay you to evaluate the customer's environment.
251
00:10:29,080 --> 00:10:31,040
Bounties that pay you for net new workloads
252
00:10:31,040 --> 00:10:34,400
all stacked on top of the back end incentives you're already earning.
253
00:10:34,400 --> 00:10:38,280
That math is why every partner we work with gets pushed towards specialization.
254
00:10:38,280 --> 00:10:39,720
The designation gets you in the game.
255
00:10:39,720 --> 00:10:42,080
The specialization lets you win it.
256
00:10:42,080 --> 00:10:45,760
The real economics, co-op, MDF, and what you're leaving on the table.
257
00:10:45,760 --> 00:10:48,120
Let's get specific about how co-op actually works
258
00:10:48,120 --> 00:10:50,960
because this is where most partners leave money on the table
259
00:10:50,960 --> 00:10:52,280
without realizing it.
260
00:10:52,280 --> 00:10:53,360
Here's the mechanics.
261
00:10:53,360 --> 00:10:55,800
Back end incentives accrue in six month increments.
262
00:10:55,800 --> 00:10:58,880
Microsoft tracks everything you earn across your eligible workloads
263
00:10:58,880 --> 00:11:01,320
at the end of each six month period they look at your total.
264
00:11:01,320 --> 00:11:03,880
If you're under $10,000 they cut you a check.
265
00:11:03,880 --> 00:11:07,360
Straight payment, no MDF bucket, no co-op to manage.
266
00:11:07,360 --> 00:11:08,720
You get the cash you move on.
267
00:11:08,720 --> 00:11:10,320
If you're over 10,000 it splits.
268
00:11:10,320 --> 00:11:11,920
60% comes as a check.
269
00:11:11,920 --> 00:11:15,760
That's the deposit from Microsoft that shows up in your bank account with no explanation.
270
00:11:15,760 --> 00:11:19,680
The other 40% goes into your MDF bucket, market development funds,
271
00:11:19,680 --> 00:11:21,280
and you have six months to spend it.
272
00:11:21,280 --> 00:11:22,480
What can you spend it on?
273
00:11:22,480 --> 00:11:25,440
Marketing events, digital campaigns, certifications for your team,
274
00:11:25,440 --> 00:11:28,480
ignite tickets, hotel and travel for Microsoft lead events,
275
00:11:28,480 --> 00:11:29,760
pretty broad list.
276
00:11:29,760 --> 00:11:31,920
Microsoft wants you using this money to drive more business,
277
00:11:31,920 --> 00:11:33,120
not just pocketing it.
278
00:11:33,120 --> 00:11:34,800
Here's what happens if you don't spend it.
279
00:11:34,800 --> 00:11:36,080
Microsoft takes it back.
280
00:11:36,080 --> 00:11:37,040
End of story.
281
00:11:37,040 --> 00:11:38,880
You lose that money that was sitting in your bucket,
282
00:11:38,880 --> 00:11:40,400
earmarked for your business.
283
00:11:40,400 --> 00:11:40,960
Gone.
284
00:11:40,960 --> 00:11:42,000
And Microsoft keeps it.
285
00:11:42,000 --> 00:11:44,320
Now here's the part that surprises most partners.
286
00:11:44,320 --> 00:11:46,720
Most of you have MDF sitting in that bucket right now
287
00:11:46,720 --> 00:11:47,680
and you don't even know it.
288
00:11:47,680 --> 00:11:50,880
There's a page and partner center under co-op management that shows your balance.
289
00:11:50,880 --> 00:11:54,160
It's one of those links buried deep enough that most people never find it.
290
00:11:54,160 --> 00:11:55,040
But it's there.
291
00:11:55,040 --> 00:11:56,000
And the money is real.
292
00:11:56,000 --> 00:11:59,360
This is cash that funds your go-to-market without touching your P&L.
293
00:11:59,360 --> 00:12:01,200
You can run a marketing campaign,
294
00:12:01,200 --> 00:12:04,400
send your team to ignite, pay for certifications,
295
00:12:04,400 --> 00:12:06,080
all on Microsoft's dime.
296
00:12:06,080 --> 00:12:09,600
But only if you know it's there and only if you spend it before the clock runs out.
297
00:12:09,600 --> 00:12:12,720
So how do you actually build a plan to move through these layers
298
00:12:12,720 --> 00:12:14,960
and make sure you're not leaving money behind?
299
00:12:14,960 --> 00:12:16,720
Building your journey roadmap.
300
00:12:16,720 --> 00:12:17,680
Where to start?
301
00:12:17,680 --> 00:12:19,280
Start by logging into partner center
302
00:12:19,280 --> 00:12:21,440
and pulling up your current partner capability score.
303
00:12:21,440 --> 00:12:23,600
That's your baseline and you can't plan a route
304
00:12:23,600 --> 00:12:25,040
if you don't know where you're standing.
305
00:12:25,040 --> 00:12:27,040
See where you're strong and where you're weak.
306
00:12:27,040 --> 00:12:29,200
If your customer success score is dragging,
307
00:12:29,200 --> 00:12:30,800
that's the place to invest first.
308
00:12:30,800 --> 00:12:32,880
Now pick one solution area to pursue.
309
00:12:32,880 --> 00:12:34,480
Modern work is the easiest entry point
310
00:12:34,480 --> 00:12:36,880
because you're already selling Microsoft 365
311
00:12:36,880 --> 00:12:38,880
and your customers are already using exchange,
312
00:12:38,880 --> 00:12:40,080
teams and SharePoint.
313
00:12:40,080 --> 00:12:42,400
The path to a modern work designation is the shortest
314
00:12:42,400 --> 00:12:43,840
because you're already doing the work.
315
00:12:43,840 --> 00:12:45,280
You just need to formalize it.
316
00:12:45,280 --> 00:12:46,720
Here's the shift most people miss.
317
00:12:46,720 --> 00:12:48,800
Customer success is worth 55 points,
318
00:12:48,800 --> 00:12:50,800
which is more than half of your total score.
319
00:12:50,800 --> 00:12:53,200
So focus on usage growth and deployments
320
00:12:53,200 --> 00:12:56,080
instead of spending all your energy chasing new logos.
321
00:12:56,080 --> 00:12:59,200
Get your existing customers actually consuming what they've bought.
322
00:12:59,200 --> 00:13:01,440
That alone will move your score more than anything else.
323
00:13:01,440 --> 00:13:03,040
Once you hold the designation,
324
00:13:03,040 --> 00:13:04,800
enroll in MCI engagements.
325
00:13:04,800 --> 00:13:07,600
That's where you see what programs you're actually eligible for.
326
00:13:07,600 --> 00:13:09,760
Microsoft has dozens of incentive programs
327
00:13:09,760 --> 00:13:11,200
running at any given time.
328
00:13:11,200 --> 00:13:14,160
Deployment funds, assessment offers, bounties,
329
00:13:14,160 --> 00:13:15,200
but you have to enroll.
330
00:13:15,200 --> 00:13:16,320
They don't just show up.
331
00:13:16,320 --> 00:13:18,400
Then start targeting your first specialization.
332
00:13:18,400 --> 00:13:20,560
Look at the requirements and build a six month plan
333
00:13:20,560 --> 00:13:22,160
around what customer deployments you need,
334
00:13:22,160 --> 00:13:23,360
what consumption targets hit,
335
00:13:23,360 --> 00:13:25,440
and what certifications your team has to earn.
336
00:13:25,440 --> 00:13:27,120
Map it out and start working toward it.
337
00:13:27,120 --> 00:13:29,120
The partners who win are the ones who build a system,
338
00:13:29,120 --> 00:13:30,960
not the ones who chase every new program.
339
00:13:30,960 --> 00:13:32,800
You don't need to enroll in everything.
340
00:13:32,800 --> 00:13:34,240
You need a repeatable process.
341
00:13:34,240 --> 00:13:37,120
Sign one person in your org to own MCI engagements.
342
00:13:37,120 --> 00:13:39,440
They track renewals, check for eligible programs,
343
00:13:39,440 --> 00:13:41,520
and make sure you're not leaving money on the table.
344
00:13:41,520 --> 00:13:43,520
One person, that's all it takes.
345
00:13:43,520 --> 00:13:44,880
The one thing that separates partners
346
00:13:44,880 --> 00:13:46,640
who scale from partners who store.
347
00:13:46,640 --> 00:13:47,760
So here's where we land.
348
00:13:47,760 --> 00:13:50,480
The partner journey is three layers, not a ladder.
349
00:13:50,480 --> 00:13:54,240
Membership, Solutions Partner Designation, and Specialization.
350
00:13:54,240 --> 00:13:56,080
Each layer unlocks something different,
351
00:13:56,080 --> 00:13:58,080
and most partners stop at layer 102
352
00:13:58,080 --> 00:13:59,840
and wonder why their incentives don't grow.
353
00:13:59,840 --> 00:14:01,600
The difference between a Solutions Partner
354
00:14:01,600 --> 00:14:04,320
and an Advanced Specialized Partner on a single deal
355
00:14:04,320 --> 00:14:06,000
can be $60,000.
356
00:14:06,000 --> 00:14:07,360
That's not a small gap.
357
00:14:07,360 --> 00:14:09,440
That's the difference between a good year and a great year.
358
00:14:09,440 --> 00:14:11,440
And it's sitting there for the partners who do the work.
359
00:14:11,440 --> 00:14:12,480
Here's your homework.
360
00:14:12,480 --> 00:14:14,480
This week, log into Partner Center,
361
00:14:14,480 --> 00:14:16,240
check your partner capability score
362
00:14:16,240 --> 00:14:19,040
and look at your MDF balance under co-op management.
363
00:14:19,040 --> 00:14:20,960
If you're over $10,000 in earnings,
364
00:14:20,960 --> 00:14:22,240
you have co-op dollars sitting there.
365
00:14:22,240 --> 00:14:24,560
Spend them before Microsoft takes them back.
366
00:14:24,560 --> 00:14:26,400
Start with the first layer we covered.
367
00:14:26,400 --> 00:14:29,200
Membership, if you're not even there yet, that's where you begin.
368
00:14:29,200 --> 00:14:30,880
If you are, move to the next layer.
369
00:14:30,880 --> 00:14:33,040
Pick one solution area, build your score,
370
00:14:33,040 --> 00:14:36,640
get the designation, and then start targeting your first specialization.
371
00:14:36,640 --> 00:14:38,240
And if you want the full breakdown
372
00:14:38,240 --> 00:14:39,920
of how to plan your specialization path,
373
00:14:39,920 --> 00:14:41,120
that's the next video.
374
00:14:41,120 --> 00:14:43,120
We'll walk through the specific requirements,
375
00:14:43,120 --> 00:14:44,640
the timelines and the strategy
376
00:14:44,640 --> 00:14:46,880
for picking the right specialization for your business.
00:00:00,000 --> 00:00:02,260
Here's the thing, most partners don't see coming.
2
00:00:02,260 --> 00:00:04,680
You think the partner journey is about climbing tiers,
3
00:00:04,680 --> 00:00:07,500
silver to gold, gold to something shinier.
4
00:00:07,500 --> 00:00:08,900
That used to be how it worked,
5
00:00:08,900 --> 00:00:10,560
and most people still think that way,
6
00:00:10,560 --> 00:00:12,320
but the program doesn't work like that anymore.
7
00:00:12,320 --> 00:00:14,020
The real question is, what each badge actually
8
00:00:14,020 --> 00:00:15,280
unlocks for your business.
9
00:00:15,280 --> 00:00:16,960
You see a designation and you want it,
10
00:00:16,960 --> 00:00:18,620
Microsoft announces a new program
11
00:00:18,620 --> 00:00:20,120
and you rush to enroll.
12
00:00:20,120 --> 00:00:21,560
But nobody stops to ask,
13
00:00:21,560 --> 00:00:23,760
what does this actually do for my business?
14
00:00:23,760 --> 00:00:25,440
Here's the gap you need to understand.
15
00:00:25,440 --> 00:00:28,220
The program changed completely in 2022,
16
00:00:28,220 --> 00:00:29,400
silver and gold are gone.
17
00:00:29,400 --> 00:00:32,740
The Microsoft Cloud Partner Program launched in October 2022,
18
00:00:32,740 --> 00:00:36,440
then rebranded to the AI Cloud Partner Program in July 2023.
19
00:00:36,440 --> 00:00:39,420
But most partners are still operating like it's 2021,
20
00:00:39,420 --> 00:00:42,000
thinking in terms of old competencies and old benefits,
21
00:00:42,000 --> 00:00:43,480
and that's costing them real money.
22
00:00:43,480 --> 00:00:45,080
So here's what we're covering today.
23
00:00:45,080 --> 00:00:47,240
The partner journey has three distinct layers,
24
00:00:47,240 --> 00:00:49,300
not a ladder with rungs, but three layers,
25
00:00:49,300 --> 00:00:52,660
membership, solutions, partner designation, and specialization.
26
00:00:52,660 --> 00:00:54,560
Each layer unlocks something different
27
00:00:54,560 --> 00:00:56,960
and most partners never get past layer one.
28
00:00:56,960 --> 00:00:58,240
Stick with this.
29
00:00:58,240 --> 00:01:01,320
It changes how you think about your partnership with Microsoft.
30
00:01:01,320 --> 00:01:04,560
Why the program changed and why it matters?
31
00:01:04,560 --> 00:01:06,340
Silver and gold are officially gone.
32
00:01:06,340 --> 00:01:08,680
The last renewals hit January 2025.
33
00:01:08,680 --> 00:01:11,160
If you're still running on legacy silver or gold benefits,
34
00:01:11,160 --> 00:01:13,800
your incentives run through September 2025,
35
00:01:13,800 --> 00:01:17,200
and then that's it, no more renewals, no more extensions.
36
00:01:17,200 --> 00:01:19,240
The old program is done, Microsoft killed it
37
00:01:19,240 --> 00:01:21,440
because the old model measured the wrong thing.
38
00:01:21,440 --> 00:01:23,200
Silver and gold were about inputs.
39
00:01:23,200 --> 00:01:25,920
How many search your team holds, how many exams they passed,
40
00:01:25,920 --> 00:01:27,400
how many competencies you stacked.
41
00:01:27,400 --> 00:01:28,800
It was a checkbox game.
42
00:01:28,800 --> 00:01:30,480
You could load up on certifications,
43
00:01:30,480 --> 00:01:33,680
never deliver a thing, and still call yourself a gold partner.
44
00:01:33,680 --> 00:01:35,600
The new model measures outputs.
45
00:01:35,600 --> 00:01:38,480
Not what your team knows, but what your customers actually do.
46
00:01:38,480 --> 00:01:40,580
How much of the Microsoft cloud are they consuming?
47
00:01:40,580 --> 00:01:41,880
Are they using what you sold them?
48
00:01:41,880 --> 00:01:42,720
Are they growing?
49
00:01:42,720 --> 00:01:43,560
That's what matters now.
50
00:01:43,560 --> 00:01:47,520
Microsoft retired the Microsoft Partner Network in October 2022,
51
00:01:47,520 --> 00:01:49,880
launching the Microsoft Cloud Partner Program,
52
00:01:49,880 --> 00:01:53,920
then rebranded to the AI Cloud Partner Program in July 2023.
53
00:01:53,920 --> 00:01:56,640
The name changed, but the direction stayed the same.
54
00:01:56,640 --> 00:01:58,960
Everything now points to customer outcomes.
55
00:01:58,960 --> 00:02:00,640
Why does this shift matter to you?
56
00:02:00,640 --> 00:02:02,960
The rules for getting recognized change completely.
57
00:02:02,960 --> 00:02:04,720
You can't coast on old certifications,
58
00:02:04,720 --> 00:02:07,240
you can't rest on deals you close three years ago.
59
00:02:07,240 --> 00:02:08,960
The program is designed to measure
60
00:02:08,960 --> 00:02:11,360
what you're doing right now with real customers
61
00:02:11,360 --> 00:02:12,480
in the Microsoft Cloud.
62
00:02:12,480 --> 00:02:15,240
If you're not driving consumption, you're not progressing.
63
00:02:15,240 --> 00:02:17,680
So what does the new journey actually look like?
64
00:02:17,680 --> 00:02:21,120
It starts with the layer most partners skip past too fast.
65
00:02:21,120 --> 00:02:24,120
The membership layer, where most partners start install.
66
00:02:24,120 --> 00:02:25,400
Membership is the entry point.
67
00:02:25,400 --> 00:02:26,480
You go to partner.
68
00:02:26,480 --> 00:02:29,720
Microsoft.com, fill out a form, get an MPN ID,
69
00:02:29,720 --> 00:02:30,360
and that's it.
70
00:02:30,360 --> 00:02:33,120
You're a Microsoft partner with access to marketing resources
71
00:02:33,120 --> 00:02:35,360
and Microsoft learn but not much else.
72
00:02:35,360 --> 00:02:37,960
You're in the system, but you're not really doing anything yet.
73
00:02:37,960 --> 00:02:40,800
From there, Microsoft offers three paid membership bundles
74
00:02:40,800 --> 00:02:45,800
starting at about $3.50 a year for Partner Launch, $925 for Partner Success Core,
75
00:02:45,800 --> 00:02:49,800
and $4,125 for Partner Success Expanded.
76
00:02:49,800 --> 00:02:51,920
Each one unlocks more product benefits.
77
00:02:51,920 --> 00:02:55,120
Launch gives you starter Azure credits and small license bundles.
78
00:02:55,120 --> 00:02:57,160
Enough to poke around, build a demo environment,
79
00:02:57,160 --> 00:02:58,640
maybe train a couple people.
80
00:02:58,640 --> 00:03:02,240
Core bumps that up to roughly $2,400 in Azure credits per year,
81
00:03:02,240 --> 00:03:06,400
plus 15 user grounds for things like Microsoft 365 Business Premium,
82
00:03:06,400 --> 00:03:08,600
Dynamics 365 Defender and Entra ID.
83
00:03:08,600 --> 00:03:10,360
It's a solid package for a small team.
84
00:03:10,360 --> 00:03:13,240
Expanded provides significantly higher quantities across the board
85
00:03:13,240 --> 00:03:15,800
with more Azure credits, more user licenses,
86
00:03:15,800 --> 00:03:17,480
and more sandbox environments.
87
00:03:17,480 --> 00:03:19,120
It's the bundle that starts to look like
88
00:03:19,120 --> 00:03:21,880
what old silver partners used to get.
89
00:03:21,880 --> 00:03:22,760
But here's the problem.
90
00:03:22,760 --> 00:03:26,040
Most partners stop here buying the cheapest bundle and calling it a day.
91
00:03:26,040 --> 00:03:27,440
They never move past membership,
92
00:03:27,440 --> 00:03:29,960
and membership alone doesn't unlock the real economics,
93
00:03:29,960 --> 00:03:32,720
no backend incentives, no co-op funding, no MDF.
94
00:03:32,720 --> 00:03:34,040
You're getting product benefits,
95
00:03:34,040 --> 00:03:36,920
but you're not getting paid for the business you're bringing to Microsoft.
96
00:03:36,920 --> 00:03:39,800
To get to the real money, you need to move to the next layer,
97
00:03:39,800 --> 00:03:41,840
the solutions partner designation.
98
00:03:41,840 --> 00:03:44,360
What a solutions partner designation actually requires.
99
00:03:44,360 --> 00:03:46,640
So what does it take to get a solutions partner designation?
100
00:03:46,640 --> 00:03:49,760
It all comes down to one number, your partner capability score.
101
00:03:49,760 --> 00:03:51,200
You need 70 points out of 100,
102
00:03:51,200 --> 00:03:53,360
with at least one point in every single symmetric.
103
00:03:53,360 --> 00:03:54,720
You can't have a zero anywhere.
104
00:03:54,720 --> 00:03:57,360
Score 90 points total, but have a zero in one category.
105
00:03:57,360 --> 00:03:59,440
You don't qualify, that's the rule.
106
00:03:59,440 --> 00:04:01,200
Your score comes from three categories.
107
00:04:01,200 --> 00:04:04,640
Performance, worth 20 points, measuring net customer ads.
108
00:04:04,640 --> 00:04:07,520
Are you bringing new customers into the Microsoft ecosystem?
109
00:04:07,520 --> 00:04:10,640
Skilling worth 25 points based on your team's intermediate
110
00:04:10,640 --> 00:04:12,840
and advanced certifications.
111
00:04:12,840 --> 00:04:16,480
And customer success worth 55 points, more than half your entire score.
112
00:04:16,480 --> 00:04:18,640
Customer success breaks into two pieces,
113
00:04:18,640 --> 00:04:21,760
usage growth, which tracks whether your existing customers are using
114
00:04:21,760 --> 00:04:23,760
more of the Microsoft cloud than last year,
115
00:04:23,760 --> 00:04:27,400
and deployments, which measures whether you're landing new workloads with active use,
116
00:04:27,400 --> 00:04:30,600
meaning more than 40% of licenses are actually being used.
117
00:04:30,600 --> 00:04:32,600
That 40% threshold is the shelf way killer.
118
00:04:32,600 --> 00:04:35,080
Microsoft doesn't want you selling licenses that sit in a drawer.
119
00:04:35,080 --> 00:04:36,360
They want you driving real consumption.
120
00:04:36,360 --> 00:04:38,960
This is the biggest shift from silver and gold.
121
00:04:38,960 --> 00:04:42,920
In the old program, you could load up on certifications, stack competencies,
122
00:04:42,920 --> 00:04:46,000
and never worry about whether your customers actually use the products.
123
00:04:46,000 --> 00:04:49,920
You could be a gold partner with 135 people and zero customer adoption.
124
00:04:49,920 --> 00:04:50,960
That doesn't work anymore.
125
00:04:50,960 --> 00:04:54,160
You can't ignore usage growth and expect to hold a designation.
126
00:04:54,160 --> 00:04:59,520
The cost to hold a solutions partner designation is $4,730 per year per designation.
127
00:04:59,520 --> 00:05:04,000
Two designations cost 9,160, three cost 14,090.
128
00:05:04,000 --> 00:05:07,080
It adds up, but the incentives you unlock at this layer
129
00:05:07,080 --> 00:05:09,880
more than cover the cost if you're driving real business.
130
00:05:09,880 --> 00:05:11,360
Here's how the timing works.
131
00:05:11,360 --> 00:05:13,600
If you're not yet enrolled in a solution area,
132
00:05:13,600 --> 00:05:17,560
your qualification window is the current month plus the previous five full months,
133
00:05:17,560 --> 00:05:19,000
a rolling six month window.
134
00:05:19,000 --> 00:05:23,640
If you're already enrolled, your window is your anniversary date plus a 30 day renewal window.
135
00:05:23,640 --> 00:05:27,040
Once you qualify and purchase, the designation is valid for 13 months,
136
00:05:27,040 --> 00:05:28,760
including that one month renewal window.
137
00:05:28,760 --> 00:05:31,400
So you've got about a year before you need to re-qualify.
138
00:05:31,400 --> 00:05:34,760
The designation you pursue depends on which solution area fits your business.
139
00:05:34,760 --> 00:05:37,720
So let's look at what those areas actually are.
140
00:05:37,720 --> 00:05:40,720
The six solution areas and the consolidation coming.
141
00:05:40,720 --> 00:05:42,640
Here's the thing about the six designations.
142
00:05:42,640 --> 00:05:45,360
Today you've got six solutions partner designations.
143
00:05:45,360 --> 00:05:48,800
Business applications, data and AI, digital and app innovation,
144
00:05:48,800 --> 00:05:51,080
infrastructure, security and modern work.
145
00:05:51,080 --> 00:05:55,280
Three of those are Azure aligned, meaning data and AI, digital and app innovation
146
00:05:55,280 --> 00:05:59,040
and infrastructure all tied directly to Azure workloads.
147
00:05:59,040 --> 00:06:03,840
The other three are non-Azure business applications maps to Dynamics 365,
148
00:06:03,840 --> 00:06:07,800
modern work maps to Microsoft 365 and security sits across both.
149
00:06:07,800 --> 00:06:10,080
Now here's something coming that most partners don't know about.
150
00:06:10,080 --> 00:06:15,160
In FY26, Microsoft is consolidating from six solution areas down to three commercial solution areas.
151
00:06:15,160 --> 00:06:19,000
They haven't published the exact new names yet, but the direction is clear.
152
00:06:19,000 --> 00:06:22,080
Fewer, broader areas that align to customer demand.
153
00:06:22,080 --> 00:06:26,480
The idea is to make it easier for you to match your capabilities to what the market actually wants.
154
00:06:26,480 --> 00:06:29,520
For most partners, the smart play is to start with modern work.
155
00:06:29,520 --> 00:06:34,640
You're already selling Microsoft 365 and you already have customers using Exchange Teams SharePoint.
156
00:06:34,640 --> 00:06:38,400
The path to a modern work designation is the shortest because you're already doing the work
157
00:06:38,400 --> 00:06:39,880
and just need to formalize it.
158
00:06:39,880 --> 00:06:41,640
From there, pick one second designation.
159
00:06:41,640 --> 00:06:45,680
If you're strong in Azure, go with infrastructure or data and AI.
160
00:06:45,680 --> 00:06:48,280
If you're seeing demand around security, go with security,
161
00:06:48,280 --> 00:06:52,320
instead of chasing all six at once, pick two, get good at them and build from there.
162
00:06:52,320 --> 00:06:54,080
Once you know which designation to pursue,
163
00:06:54,080 --> 00:06:56,760
the next question is what it actually unlocks for you?
164
00:06:56,760 --> 00:06:58,440
What solutions partner unlocks?
165
00:06:58,440 --> 00:06:59,760
Benefits and incentives.
166
00:06:59,760 --> 00:07:03,320
So you've done the work, hit the 70 point threshold and bought the designation.
167
00:07:03,320 --> 00:07:04,640
Let's look at what you actually get.
168
00:07:04,640 --> 00:07:05,720
First, the big one.
169
00:07:05,720 --> 00:07:07,840
Solutions partner turns on backend incentives,
170
00:07:07,840 --> 00:07:11,400
which are residual payments from Microsoft on top of what you make from licensing.
171
00:07:11,400 --> 00:07:15,400
On eligible workloads, you typically get 4% to 20% backend incentives,
172
00:07:15,400 --> 00:07:17,680
depending on what you're selling, which program is active.
173
00:07:17,680 --> 00:07:18,800
This is not margin.
174
00:07:18,800 --> 00:07:22,320
Margin is the discount you get from your distributor when you buy a license.
175
00:07:22,320 --> 00:07:24,640
While backend incentives come from Microsoft directly,
176
00:07:24,640 --> 00:07:27,840
based on what your customers consume, then there are the product benefits.
177
00:07:27,840 --> 00:07:29,800
If you hold a modern work or security designation,
178
00:07:29,800 --> 00:07:34,560
you get 100 Microsoft 365 E3 or E5 licenses to run your own business,
179
00:07:34,560 --> 00:07:38,440
plus somewhere between $500 and $1,000 per month in Azure credits,
180
00:07:38,440 --> 00:07:40,520
depending on the designation.
181
00:07:40,520 --> 00:07:43,560
You also get 50 hours of technical pre-sales and deployment support.
182
00:07:43,560 --> 00:07:45,400
That means when you're in a complex deal,
183
00:07:45,400 --> 00:07:48,440
you can bring in Microsoft architects to help design the solution.
184
00:07:48,440 --> 00:07:51,280
That alone is worth more than the cost of the designation.
185
00:07:51,280 --> 00:07:53,520
You also get access to go-to-market resources like
186
00:07:53,520 --> 00:07:57,080
Cossal eligibility, partner badging and marketplace listing.
187
00:07:57,080 --> 00:08:00,000
These are the things that make you visible to Microsoft's own sales teams.
188
00:08:00,000 --> 00:08:02,200
Without a designation, you're invisible to them,
189
00:08:02,200 --> 00:08:04,360
but with one, you show up in their systems.
190
00:08:04,360 --> 00:08:05,920
And there's the internal use rights piece,
191
00:08:05,920 --> 00:08:09,840
and you can run your own business on Microsoft's stack at a fraction of the cost.
192
00:08:09,840 --> 00:08:11,160
And that's not a small thing.
193
00:08:11,160 --> 00:08:15,840
If you're a 50 person firm, having 103 E3 licenses covers your entire staff,
194
00:08:15,840 --> 00:08:18,640
your Azure credits cover your dev and test environments,
195
00:08:18,640 --> 00:08:21,920
and your dynamic sandboxes let you build practice demos.
196
00:08:21,920 --> 00:08:24,960
You're essentially running your business on Microsoft's time.
197
00:08:24,960 --> 00:08:26,120
Now here's the catch.
198
00:08:26,120 --> 00:08:28,520
Backend incentives accrue in six months increments,
199
00:08:28,520 --> 00:08:30,800
and how you get paid depends on volume.
200
00:08:30,800 --> 00:08:32,800
For earnings under $10,000 per period,
201
00:08:32,800 --> 00:08:35,320
Microsoft just cuts you a check every six months,
202
00:08:35,320 --> 00:08:37,480
simple and straightforward, no strings attached.
203
00:08:37,480 --> 00:08:39,760
For earnings over $10,000, it splits.
204
00:08:39,760 --> 00:08:43,360
60% comes as a check, and 40% goes into a co-op bucket,
205
00:08:43,360 --> 00:08:44,880
which is market development funds.
206
00:08:44,880 --> 00:08:47,280
You have six months to spend that money on approved activities
207
00:08:47,280 --> 00:08:49,840
like marketing events, digital campaigns, certifications,
208
00:08:49,840 --> 00:08:53,000
ignite tickets and hotel and travel for Microsoft led events.
209
00:08:53,000 --> 00:08:55,000
If you don't spend it, Microsoft takes it back.
210
00:08:55,000 --> 00:08:57,480
Most partners have MDF sitting in that bucket right now,
211
00:08:57,480 --> 00:08:58,320
and don't even know it.
212
00:08:58,320 --> 00:09:01,600
There's a link in Partner Center under co-op management that shows your balance.
213
00:09:01,600 --> 00:09:05,080
If you've never clicked it, go check because you might be leaving money on the table.
214
00:09:05,080 --> 00:09:07,600
But the real money, the kind that changes your business,
215
00:09:07,600 --> 00:09:10,360
doesn't start until you move to the next layer.
216
00:09:10,360 --> 00:09:12,600
Specializations where the economics change.
217
00:09:12,600 --> 00:09:15,960
Specializations sit on top of your solutions partner designation.
218
00:09:15,960 --> 00:09:18,480
They approve of deep expertise in a specific scenario,
219
00:09:18,480 --> 00:09:20,440
not broad capability but auditable,
220
00:09:20,440 --> 00:09:23,400
verifiable depths that Microsoft or a third party validates.
221
00:09:23,400 --> 00:09:25,160
This isn't a check box exercise.
222
00:09:25,160 --> 00:09:27,080
The requirements are different from designations.
223
00:09:27,080 --> 00:09:30,160
Designations are self-reported through your partner capability score.
224
00:09:30,160 --> 00:09:32,040
Specializations, those get audited,
225
00:09:32,040 --> 00:09:34,000
you need to show real customer deployments,
226
00:09:34,000 --> 00:09:37,200
real consumption, real outcomes, how many can you stack?
227
00:09:37,200 --> 00:09:40,840
For Azure, data and AI, digital and app innovation infrastructure,
228
00:09:40,840 --> 00:09:43,840
you can count up to five for extra benefits per solution area.
229
00:09:43,840 --> 00:09:46,320
For business applications, modern work and security,
230
00:09:46,320 --> 00:09:47,680
the cap is three per area.
231
00:09:47,680 --> 00:09:49,080
So you can't just collect them all.
232
00:09:49,080 --> 00:09:51,560
You have to be strategic about which ones you pursue.
233
00:09:51,560 --> 00:09:53,360
Advanced specialization is the top tier.
234
00:09:53,360 --> 00:09:55,640
That's where Microsoft allocates the real resources,
235
00:09:55,640 --> 00:09:58,240
deployment funds, assessment money, bounties.
236
00:09:58,240 --> 00:09:59,400
These are not small numbers.
237
00:09:59,400 --> 00:10:00,880
Here's the math that matters.
238
00:10:00,880 --> 00:10:02,760
On a $100,000 Azure deal,
239
00:10:02,760 --> 00:10:06,800
a solutions partner might earn about $21,000 in first year incentives.
240
00:10:06,800 --> 00:10:08,600
That's back end incentives on the consumption
241
00:10:08,600 --> 00:10:10,600
plus whatever programs they're enrolled in.
242
00:10:10,600 --> 00:10:11,480
Decent, right?
243
00:10:11,480 --> 00:10:13,520
An advanced specialized partner on the same deal
244
00:10:13,520 --> 00:10:16,080
can earn up to $81,000 in the first year.
245
00:10:16,080 --> 00:10:18,600
The difference is $60,000 on a single deal.
246
00:10:18,600 --> 00:10:19,960
That's not a rounding error.
247
00:10:19,960 --> 00:10:22,200
It's the difference between a good year and a great year.
248
00:10:22,200 --> 00:10:23,720
Where does that extra money come from?
249
00:10:23,720 --> 00:10:26,040
Deployment funds that pay you to do the migration?
250
00:10:26,040 --> 00:10:29,080
Assessment fees that pay you to evaluate the customer's environment.
251
00:10:29,080 --> 00:10:31,040
Bounties that pay you for net new workloads
252
00:10:31,040 --> 00:10:34,400
all stacked on top of the back end incentives you're already earning.
253
00:10:34,400 --> 00:10:38,280
That math is why every partner we work with gets pushed towards specialization.
254
00:10:38,280 --> 00:10:39,720
The designation gets you in the game.
255
00:10:39,720 --> 00:10:42,080
The specialization lets you win it.
256
00:10:42,080 --> 00:10:45,760
The real economics, co-op, MDF, and what you're leaving on the table.
257
00:10:45,760 --> 00:10:48,120
Let's get specific about how co-op actually works
258
00:10:48,120 --> 00:10:50,960
because this is where most partners leave money on the table
259
00:10:50,960 --> 00:10:52,280
without realizing it.
260
00:10:52,280 --> 00:10:53,360
Here's the mechanics.
261
00:10:53,360 --> 00:10:55,800
Back end incentives accrue in six month increments.
262
00:10:55,800 --> 00:10:58,880
Microsoft tracks everything you earn across your eligible workloads
263
00:10:58,880 --> 00:11:01,320
at the end of each six month period they look at your total.
264
00:11:01,320 --> 00:11:03,880
If you're under $10,000 they cut you a check.
265
00:11:03,880 --> 00:11:07,360
Straight payment, no MDF bucket, no co-op to manage.
266
00:11:07,360 --> 00:11:08,720
You get the cash you move on.
267
00:11:08,720 --> 00:11:10,320
If you're over 10,000 it splits.
268
00:11:10,320 --> 00:11:11,920
60% comes as a check.
269
00:11:11,920 --> 00:11:15,760
That's the deposit from Microsoft that shows up in your bank account with no explanation.
270
00:11:15,760 --> 00:11:19,680
The other 40% goes into your MDF bucket, market development funds,
271
00:11:19,680 --> 00:11:21,280
and you have six months to spend it.
272
00:11:21,280 --> 00:11:22,480
What can you spend it on?
273
00:11:22,480 --> 00:11:25,440
Marketing events, digital campaigns, certifications for your team,
274
00:11:25,440 --> 00:11:28,480
ignite tickets, hotel and travel for Microsoft lead events,
275
00:11:28,480 --> 00:11:29,760
pretty broad list.
276
00:11:29,760 --> 00:11:31,920
Microsoft wants you using this money to drive more business,
277
00:11:31,920 --> 00:11:33,120
not just pocketing it.
278
00:11:33,120 --> 00:11:34,800
Here's what happens if you don't spend it.
279
00:11:34,800 --> 00:11:36,080
Microsoft takes it back.
280
00:11:36,080 --> 00:11:37,040
End of story.
281
00:11:37,040 --> 00:11:38,880
You lose that money that was sitting in your bucket,
282
00:11:38,880 --> 00:11:40,400
earmarked for your business.
283
00:11:40,400 --> 00:11:40,960
Gone.
284
00:11:40,960 --> 00:11:42,000
And Microsoft keeps it.
285
00:11:42,000 --> 00:11:44,320
Now here's the part that surprises most partners.
286
00:11:44,320 --> 00:11:46,720
Most of you have MDF sitting in that bucket right now
287
00:11:46,720 --> 00:11:47,680
and you don't even know it.
288
00:11:47,680 --> 00:11:50,880
There's a page and partner center under co-op management that shows your balance.
289
00:11:50,880 --> 00:11:54,160
It's one of those links buried deep enough that most people never find it.
290
00:11:54,160 --> 00:11:55,040
But it's there.
291
00:11:55,040 --> 00:11:56,000
And the money is real.
292
00:11:56,000 --> 00:11:59,360
This is cash that funds your go-to-market without touching your P&L.
293
00:11:59,360 --> 00:12:01,200
You can run a marketing campaign,
294
00:12:01,200 --> 00:12:04,400
send your team to ignite, pay for certifications,
295
00:12:04,400 --> 00:12:06,080
all on Microsoft's dime.
296
00:12:06,080 --> 00:12:09,600
But only if you know it's there and only if you spend it before the clock runs out.
297
00:12:09,600 --> 00:12:12,720
So how do you actually build a plan to move through these layers
298
00:12:12,720 --> 00:12:14,960
and make sure you're not leaving money behind?
299
00:12:14,960 --> 00:12:16,720
Building your journey roadmap.
300
00:12:16,720 --> 00:12:17,680
Where to start?
301
00:12:17,680 --> 00:12:19,280
Start by logging into partner center
302
00:12:19,280 --> 00:12:21,440
and pulling up your current partner capability score.
303
00:12:21,440 --> 00:12:23,600
That's your baseline and you can't plan a route
304
00:12:23,600 --> 00:12:25,040
if you don't know where you're standing.
305
00:12:25,040 --> 00:12:27,040
See where you're strong and where you're weak.
306
00:12:27,040 --> 00:12:29,200
If your customer success score is dragging,
307
00:12:29,200 --> 00:12:30,800
that's the place to invest first.
308
00:12:30,800 --> 00:12:32,880
Now pick one solution area to pursue.
309
00:12:32,880 --> 00:12:34,480
Modern work is the easiest entry point
310
00:12:34,480 --> 00:12:36,880
because you're already selling Microsoft 365
311
00:12:36,880 --> 00:12:38,880
and your customers are already using exchange,
312
00:12:38,880 --> 00:12:40,080
teams and SharePoint.
313
00:12:40,080 --> 00:12:42,400
The path to a modern work designation is the shortest
314
00:12:42,400 --> 00:12:43,840
because you're already doing the work.
315
00:12:43,840 --> 00:12:45,280
You just need to formalize it.
316
00:12:45,280 --> 00:12:46,720
Here's the shift most people miss.
317
00:12:46,720 --> 00:12:48,800
Customer success is worth 55 points,
318
00:12:48,800 --> 00:12:50,800
which is more than half of your total score.
319
00:12:50,800 --> 00:12:53,200
So focus on usage growth and deployments
320
00:12:53,200 --> 00:12:56,080
instead of spending all your energy chasing new logos.
321
00:12:56,080 --> 00:12:59,200
Get your existing customers actually consuming what they've bought.
322
00:12:59,200 --> 00:13:01,440
That alone will move your score more than anything else.
323
00:13:01,440 --> 00:13:03,040
Once you hold the designation,
324
00:13:03,040 --> 00:13:04,800
enroll in MCI engagements.
325
00:13:04,800 --> 00:13:07,600
That's where you see what programs you're actually eligible for.
326
00:13:07,600 --> 00:13:09,760
Microsoft has dozens of incentive programs
327
00:13:09,760 --> 00:13:11,200
running at any given time.
328
00:13:11,200 --> 00:13:14,160
Deployment funds, assessment offers, bounties,
329
00:13:14,160 --> 00:13:15,200
but you have to enroll.
330
00:13:15,200 --> 00:13:16,320
They don't just show up.
331
00:13:16,320 --> 00:13:18,400
Then start targeting your first specialization.
332
00:13:18,400 --> 00:13:20,560
Look at the requirements and build a six month plan
333
00:13:20,560 --> 00:13:22,160
around what customer deployments you need,
334
00:13:22,160 --> 00:13:23,360
what consumption targets hit,
335
00:13:23,360 --> 00:13:25,440
and what certifications your team has to earn.
336
00:13:25,440 --> 00:13:27,120
Map it out and start working toward it.
337
00:13:27,120 --> 00:13:29,120
The partners who win are the ones who build a system,
338
00:13:29,120 --> 00:13:30,960
not the ones who chase every new program.
339
00:13:30,960 --> 00:13:32,800
You don't need to enroll in everything.
340
00:13:32,800 --> 00:13:34,240
You need a repeatable process.
341
00:13:34,240 --> 00:13:37,120
Sign one person in your org to own MCI engagements.
342
00:13:37,120 --> 00:13:39,440
They track renewals, check for eligible programs,
343
00:13:39,440 --> 00:13:41,520
and make sure you're not leaving money on the table.
344
00:13:41,520 --> 00:13:43,520
One person, that's all it takes.
345
00:13:43,520 --> 00:13:44,880
The one thing that separates partners
346
00:13:44,880 --> 00:13:46,640
who scale from partners who store.
347
00:13:46,640 --> 00:13:47,760
So here's where we land.
348
00:13:47,760 --> 00:13:50,480
The partner journey is three layers, not a ladder.
349
00:13:50,480 --> 00:13:54,240
Membership, Solutions Partner Designation, and Specialization.
350
00:13:54,240 --> 00:13:56,080
Each layer unlocks something different,
351
00:13:56,080 --> 00:13:58,080
and most partners stop at layer 102
352
00:13:58,080 --> 00:13:59,840
and wonder why their incentives don't grow.
353
00:13:59,840 --> 00:14:01,600
The difference between a Solutions Partner
354
00:14:01,600 --> 00:14:04,320
and an Advanced Specialized Partner on a single deal
355
00:14:04,320 --> 00:14:06,000
can be $60,000.
356
00:14:06,000 --> 00:14:07,360
That's not a small gap.
357
00:14:07,360 --> 00:14:09,440
That's the difference between a good year and a great year.
358
00:14:09,440 --> 00:14:11,440
And it's sitting there for the partners who do the work.
359
00:14:11,440 --> 00:14:12,480
Here's your homework.
360
00:14:12,480 --> 00:14:14,480
This week, log into Partner Center,
361
00:14:14,480 --> 00:14:16,240
check your partner capability score
362
00:14:16,240 --> 00:14:19,040
and look at your MDF balance under co-op management.
363
00:14:19,040 --> 00:14:20,960
If you're over $10,000 in earnings,
364
00:14:20,960 --> 00:14:22,240
you have co-op dollars sitting there.
365
00:14:22,240 --> 00:14:24,560
Spend them before Microsoft takes them back.
366
00:14:24,560 --> 00:14:26,400
Start with the first layer we covered.
367
00:14:26,400 --> 00:14:29,200
Membership, if you're not even there yet, that's where you begin.
368
00:14:29,200 --> 00:14:30,880
If you are, move to the next layer.
369
00:14:30,880 --> 00:14:33,040
Pick one solution area, build your score,
370
00:14:33,040 --> 00:14:36,640
get the designation, and then start targeting your first specialization.
371
00:14:36,640 --> 00:14:38,240
And if you want the full breakdown
372
00:14:38,240 --> 00:14:39,920
of how to plan your specialization path,
373
00:14:39,920 --> 00:14:41,120
that's the next video.
374
00:14:41,120 --> 00:14:43,120
We'll walk through the specific requirements,
375
00:14:43,120 --> 00:14:44,640
the timelines and the strategy
376
00:14:44,640 --> 00:14:46,880
for picking the right specialization for your business.
