Microsoft recently announced significant changes, showcasing a dedicated commitment to CSP partners as the primary channel for SMB customers. These changes are designed to enhance the partners' capacity to drive renewals, upgrades, and customer retention, while also allowing for effective business scaling. 

Key Updates: 

Introduction of Three-Year Subscription Terms: 
  • Effective June 1, 2025, Microsoft will offer three-year subscription terms for Microsoft 365 E3 and E5, with or without Teams.  
  • Also, starting July 1, 2025, a three-year subscription for Microsoft 365 E5 Security and E5 Compliance mini suites is available. 
  • These terms will include flexible billing options, allowing for upfront payment or triennial/annual billing cycles, providing greater financial flexibility for customers, including those transitioning from expiring Enterprise Agreements (EAs) 
New Promotional Offers: 
  • Starting June 9, 2025, Microsoft will launch a 10% discount promotion for new-to-E3 or new-to-E5 customers on CSP three-year subscription terms.  
  • Also, starting July 1, 2025, Microsoft will offer a 10% discount promotion for new-to E5 Security and E5 Compliance mini-bundle customers on CSP three-year subscription terms.  
  • Plus, Microsoft are extending the 15% discount promotion for Microsoft 365 Copilot in CSP through June 30, 2025. 

Net Paid Seat Adds Reporting: 
  • From June 2025, the Partner Center will feature Net Paid Seat Adds Reporting. 
  • This new reporting capability will provide you with valuable insights into performance metrics, facilitating more informed business reviews and strategic execution. 
Cloud Solution Provider (CSP) authorisation requirements 
  • To ensure the CSP partner ecosystem is well-positioned to serve SMB customers, from October 1, 2025, Microsoft is introducing new authorisation requirements that will apply to direct bill partners, distributors (formerly indirect providers), and indirect resellers. 
  • Direct bill partners, distributors and indirect resellers must meet updated authorisation criteria to maintain status.  

Learn more about these changes: 

  • You can read full details of this announcement here.