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Have you ever wondered what it is Microsoft has been doing lately? If so, you're in the right place. We've carefully selected Microsoft's most significant updates over the last month, making sure you're always up to date.
As Microsoft eventually makes changes that directly impact your business, understanding the latest releases can give you a competitive edge.
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Microsoft Updates - [05/2025]
1. Microsoft 365 Business Premium & Office 365 E1 Grant Discontinuation
Microsoft is evolving its nonprofit offers to focus on sustainability and operational efficiency. As part of this shift, two widely used nonprofit grants, Microsoft 365 Business Premium and Office 365 E1, will be discontinued via the CSP and Web Direct channels.
This affects nonprofit organizations at their next renewal cycle and requires partners to prepare for transitions to alternate offers.
What’s happening:
- The Microsoft 365 Business Premium and Office 365 E1 nonprofit grants will be discontinued. Eligible nonprofits can transition to Microsoft 365 Business Basic (up to 300 licenses granted) or take advantage of up to 75% discounts on premium nonprofit plans.
Date of Announcement:
- May 15, 2025 (Updated May 19, 2025)
Effective Date:
- On or after July 1, 2025, upon each customer's next renewal
Who is affected:
- Partners managing nonprofit customers, PDMs, and Partner Solution Sales Managers (PSSMs)
Action Required:
- Review Microsoft's official grant discontinuation landing page.
- Communicate with affected nonprofit customers early to manage expectations.
- Contact the Tech for Social Impact Partner Desk for assistance.
2. Changes to Partner of Record (POR) Assignment for CSP Resellers
To strengthen compliance and ensure accuracy in how Cloud Solution Provider (CSP) subscriptions are managed, Microsoft is updating how Partner of Record (POR) is assigned.
This enforcement applies to both the Partner Center UI and PLA API, effective from September 1, 2025, and requires resellers to be properly authorized and compliant.
What’s happening:
- Microsoft will enforce new validation rules in Partner Center to ensure that only active, authorized, and compliant indirect resellers can be assigned as Partner of Record on CSP subscriptions.
Date of Announcement:
- May 14, 2025 (Updated June 4, 2025)
Effective Date:
- September 1, 2025
Who is affected:
- Distributors (formerly indirect providers) and all indirect resellers
Action Required:
- Ensure resellers have valid CSP authorization, active tenants, and correct PLA IDs.
- Use the Insights dashboard to validate POR status.
- Prepare by testing assignments in sandbox environments.
- Review Microsoft’s full guidance on Partner of Record policies.
3. CSP Authorization & Incentives Requirements FY26
To build a stronger, more secure CSP ecosystem, Microsoft is rolling out new eligibility and compliance requirements for CSP partners across all levels: direct bill, distributor, and indirect reseller.
These changes will be enforced starting October 1, 2025, and will impact CSP authorizations, incentive eligibility, and COCP (Change of Channel Partner) activities.
What’s happening:
- Updated authorization standards and incentive eligibility thresholds are being introduced for all CSP tiers, including new minimum revenue levels, mandatory Solution Partner designations, and performance evaluations.
Date of Announcement:
- May 1, 2025 (Updated May 5 and May 15, 2025)
Effective Date:
- October 1, 2025
Who is affected:
- All CSP partners: direct bill partners, distributors, and indirect resellers
Action Required:
- Review detailed requirements via the CSP Authorizations One-Pager and Incentives Eligibility Overview.
- Ensure compliance with Partner Center security score.
- Monitor your Change of Channel activity as Microsoft will enforce penalties for misuse.
4. AI Cloud Partner Program – May 2025 Update
The Microsoft AI Cloud Partner Program (MAICPP) continues to evolve with significant updates to certifications, SMB partner paths, new specializations, and benefit tiers.
This update focuses on helping partners differentiate in the AI and Azure space while increasing alignment with high-priority customer needs.
What’s happening:
Enhancements include:
- New SMB Paths for Azure solution areas (Data & AI, Infrastructure, Digital & App Innovation)
- New Azure Specialization V.Next for building AI applications without requiring audits
- Updated certification requirements for several specializations
- Introduction of dual EEA and Non-EEA versions for M365 & Teams benefits
Date of Announcement:
- May 5, 2025
Effective Date:
- Ongoing
Who is affected:
- All partners enrolled in the Microsoft AI Cloud Partner Program
Action Required:
- Explore SMB-specific designations: SMB Path for Solutions Partners
- Review updated skilling paths in the Specializations Community
- Access the MAICPP benefits FAQ
- Learn more about the Azure Innovate Program
Key Resources
- Partner blog
- CSP Community call
- March 20, 2025, announcement.
- Review CSP overview on Microsoft Learn.
- CSP Technical Training session
- Download the authorizations one-pager for more details about the changes.
- Microsoft Partner Agreement (MPA).
- Partner Center security score.
![Risk Management [Part 3]](https://media.cloudcockpit.works/media/assets/large_managing_financial_risk_in_the_microsoft_csp_program_564aaefd90.webp)
