Welcome to Spring!
August delivered several important Microsoft partner updates, particularly around AI skilling, partner readiness and new recognition pathways. At the same time, opportunities around Azure migrations, Copilot adoption and Azure funding continue to grow as customers review their cloud, AI and security strategies. Microsoft also announced new AI-focused certification pathways, a new Eligibility Dashboard and Partner Compliance Readiness training.
For partners, the opportunity remains focused on helping customers modernise, optimise and prepare for the next phase of AI-driven transformation.
New Frontier Transformation Engineer Badge
Microsoft has introduced the Frontier Transformation Engineer badge, designed to recognise partners with the skills required to deliver Frontier AI solutions.
As AI projects continue moving from proof of concept into production, Microsoft is placing greater emphasis on validated technical capability and customer outcomes.
AI-Focused Skilling Continues
Microsoft continues to evolve certification pathways, with traditional certifications being replaced by AI-focused alternatives.
Certifications retiring with replacements:
Azure Security Engineer Associate (AZ-500) retired on 31 August 2026 and has been replaced by Cloud and AI Security Engineer Associate (SC-500).
Power Platform Functional Consultant Associate (PL-200) retired on 31 August 2026 and has been replaced by Intelligent Applications Builder Associate (AB-410).
Microsoft has also introduced a new Eligibility Dashboard within Partner Center and launched new Partner Compliance Readiness training within the Partner Skilling Hub. We suggest to review your team's certification roadmap, check your Partner Center eligibility status and ensure your skilling plans remain aligned with Microsoft's latest requirements.
Azure Opportunities Continue to Grow
Many organisations are currently reviewing their Azure consumption, licensing arrangements and long-term cloud strategy.
This is creating opportunities for partners to engage customers currently transacting through Enterprise Agreements (EA), Azure Pay-As-You-Go (PAYG) and other Azure purchasing models to determine whether their current Azure purchasing approach remains the right fit for their business.
As part of Dicker Data's Microsoft Frontier Distributor designation, we can now access Azure Accelerate funding opportunities for eligible customer projects.
This funding can help support qualified Azure engagements across migration, modernisation, AI initiatives and Azure consumption growth opportunities.
If you have an Azure opportunity you would like to discuss, reach out to the Dicker Data Microsoft team to explore available funding options and support.
Pricing Changes
1st of October 2026 there will be a 5% price uplift for annual term CSP Software Subscriptions billed monthly.
The CSP Software Subscription products affected by this announcement include:
- SQL Server
- Windows Server
- System Center
What does this mean?
- New annual term Software Subscriptions billed monthly purchased from 1 October 2026 will include the 5% uplift.
- For Existing annual term Software Subscriptions billed monthly the 5% uplift will take effect at their first renewal on or after 1 October 2026.
- There is no change to annual upfront billing.
We recommend reviewing any upcoming renewals and discussing the pricing change with affected customers ahead of their renewal date.
Read the full announcement here: August 2026 announcements - Partner Center announcements | Microsoft Learn
***Please note this announcement does not relate to any NCE seat-based products such as M365***
CSP Growth Margins Commence in October
From 1 October 2026, Microsoft will introduce a new CSP Growth Margin for selected licence-based offers. The Growth Margin provides a higher total margin for qualifying customer growth and already includes the standard base margin. It is not stacked on top.
Partners can qualify through three scenarios: New-to-Offer, significant seat expansion, or strategic SKU mix. Eligible products include Microsoft 365 Copilot, Microsoft 365 E5, Microsoft 365 E7, Microsoft Defender Suite, Microsoft Purview Suite and Windows 365 Enterprise. Nonprofit, Education and Government SKUs are not eligible.
The Lookback Period
For New-to-Offer opportunities, Microsoft reviews the customer's tenant history across all Microsoft channels and partners. The default lookback period is the previous three years, unless a different period is specified in the CSP Growth Margin Guide for the relevant offer. A product may therefore not qualify as new even if it is the first time the current partner has sold it through CSP.
Deal Structure Is Important
For qualifying mid-term seat expansions, the additional seats must be placed on a new subscription. Seats added to an existing subscription mid-term receive only the standard base margin. At scheduled renewal, a separate subscription is not required and all seats may receive Growth Margin where the eligibility criteria are met.
Growth Margins - Partner Resources (Appropriate Partner Centre access is required for these documents.
Margin Changes Coming October 2026
Microsoft has advised that the base margin on a select group of CSP SKUs will reduce from 20% to 15% effective October 2026. The impacted products include Office 365 E1, Office 365 E3, OneDrive Extra Storage, SharePoint, Exchange Online, Microsoft 365 Apps for Business, and Microsoft 365 Apps for Enterprise.
Partners should review current opportunities and renewal pipelines to understand any potential impact on profitability and customer pricing discussions ahead of the change.
Promotions Worth Reviewing Before 30 September
Several Microsoft promotions remain available for eligible customers and may help support conversations around AI adoption, security and Microsoft 365 upgrades.
- Microsoft 365 Copilot discounts of up to 30% off for eligible customers deploying Copilot at scale. Available until 30 September 2026.
- Microsoft 365 E7 discounts of up to 15% off for eligible customers. Available until 30 September 2026.
- Microsoft 365 E5 annual subscriptions with 15% off for eligible new-to-E5 customers. Available until 30 September 2026.
- Microsoft Purview Suite with 50% off for eligible Microsoft 365 Copilot customers. Available until 30 September 2026.
- Microsoft 365 Business Basic and Copilot Business bundle promotions offering 25% off for eligible customers. Available until 31 December 2026.
For more information on current promotions and eligibility requirements, please contact our licensing teams:
Australia: microsoft.sales@dickerdata.com.au
New Zealand: microsoft.sales@dickerdata.co.nz
Copilot in 30 Continues to Build Momentum
Hurry! Only available until December 31, 2006!
If there is one area where Microsoft's investment remains strong, it is Copilot.
Copilot in 30 provides partners with a practical framework for introducing Microsoft 365 Copilot through structured workshops focused on productivity, business outcomes and real-world use cases.
The initiative helps customers move beyond talking about AI and start understanding how it can be applied within everyday business processes.
See our August Blog on Trial information - August Momentum
If you'd like to understand how Copilot in 30 can support your customer engagement strategy, reach out to the Dicker Data Microsoft team.
Trail period for Microsoft 365 Copilot Business Trail is to end 31 December 2026
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September 2026 announcements - Partner Center announcements | Microsoft Learn
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How Dicker Data Can Help
Whether you're looking to build a Copilot practice, explore Azure funding opportunities, support Azure migrations, maximise available promotions, understand Partner Center updates, review designation requirements or identify new customer growth opportunities, the Dicker Data Microsoft team is here to help.
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