Microsoft CSP Program Changes:

Big Changes Ahead: What Microsoft Partners Need to Know About FY26 CSP Updates

Microsoft is introducing significant updates to the Cloud Solution Provider (CSP) program starting October 1, 2025.

These changes affect all CSP partners: Direct Bill partners, Distributors, and Indirect Resellers and will impact both authorization and incentive eligibility.

The goal?

To ensure a stronger, more capable, and more secure partner ecosystem. If you’re part of the Microsoft CSP program, this is the time to understand what’s changing, assess your readiness, and take action.

🔍 Why Microsoft Is Making These Changes

Microsoft is evolving the CSP model to better support modern customer needs, encourage partner specialization, and drive long-term growth. That means:

• Encouraging partners to focus on specific solution areas
• Rewarding partners that deliver consistent customer value
• Strengthening security and operational capabilities

By updating the CSP requirements and aligning incentives with partner skills and performance, Microsoft is doubling down on partners who are truly driving cloud transformation.

🔹 New Authorization Requirements (Effective October 1, 2025)

Depending on your CSP role, here's what you'll need to stay authorized or join the program:

🔵 Direct Bill Partners must:

• Have at least 12 months as an Indirect Reseller;
• Complete business vetting.
• Show $1M+ in CSP revenue (last 12 months) at the Partner Global Account (PGA) level;
• Pass an operational capability assessment;
• Hold an Advanced or Premier Support plan;
• Achieve at least one Solutions Partner designation;
• Complete the Partner Center security requirements;
• Accept the direct bill Microsoft Partner Agreement (MPA).

🟠 Distributors must:

• Be nominated and approved by Microsoft;
• Complete business vetting.
• Show $30M+ CSP revenue per authorized region;
• Pass channel and security capability assessments;
• Hold Advanced or Premier Support;
• Complete the mandatory requirements of the Partner Center security score;
• Accept the updated Distributor Microsoft Partner Agreement (MPA).

🟢 Indirect Resellers must:

• Have at least $1,000 in CSP revenue (last 12 months);
• Meet the security score requirements;
• Accept the Indirect Reseller Microsoft Partner Agreement (MPA).

💰 CSP Incentive Eligibility Updates

Incentives are no longer just about sales volume, they now reward skills and customer success in key solution areas.

What Changes:

Incentives are now tied to Solution Areas (e.g., Modern Work, Security, Azure, Business Applications).

Partners must either:

• Have a relevant Solutions Partner designation, or
• Earn 25+ Partner Capability Score points in that solution area.
• Revenue thresholds also apply:
• Direct Bill Partners: $1M+ TTM CSP revenue at global account level
• Indirect Resellers: $25K+ TTM CSP revenue at PLA level

📊 Example: To earn Modern Work incentives, a partner must either be a Solutions Partner for Modern Work or Security, or score 25+ capability points in Modern Work.

Microsoft is clearly signaling: partners who invest in training, certification, and deployment capability will be rewarded.

⚡ COCP Monitoring: What You Need to Know

Microsoft will now monitor Change of Channel Partner (COCP) activity – this means tracking when customers move between CSP partners.

Why it matters:

• Microsoft will not pay incentives for revenue resulting from partner-to-partner transfers.
• Exceptions include cases of partner deauthorization or business closure.

This change is not yet enforced, but Microsoft has stated that future enforcement could include adjusted or clawed-back incentives.

ℹ️ Microsoft is currently observing COCP trends and collecting feedback. Partners will receive advance notice before any enforcement begins.

✅ Action Checklist

Here’s what you should do to stay ahead:

1. Review your revenue status: Are you above the $1K, $25K, $1M or $30M thresholds?
2. Solutions Partner: Start working on Solutions Partner designations if you haven’t yet.
3. Anniversary date: Check your CSP anniversary date, that's your compliance deadline.
4. Security score: Review and boost your Partner Center security score.
5. Talk to your distributor or Microsoft PDM to align on next steps.

⏰ Mark Your Calendar: October 1, 2025

That’s when all changes go into effect.

CloudCockpit is already helping partners navigate this transition. If you have questions, want a checklist, or need support getting compliant, we’re here to help.

Let’s get ready for FY26 – together.