Check out the latest updates on what managed service providers (MSPs) and managed intelligence providers (MIPs) need to know about Microsoft in August 2026.
Program Updates
New Process to Redeem Cloud Benefits
Microsoft has updated how partners redeem license‑based cloud benefits. They’re now activated through a guided experience in Partner Center using a $0 purchase flow, replacing key-based redemption. Benefits are tied to the Microsoft Customer Agreement (MCA)
billing account used to purchase partner benefits and can only be redeemed on tenants under that account.
In addition, benefit expiration is now aligned to your partner benefits package end date, not the date you redeem each benefit, and the 30‑day grace period has been removed. There’s no change to the benefits themselves.
Microsoft Pricing Changes Take Effect
As of July 1, Microsoft has updated global pricing and packaging updates for Microsoft 365 (M365) commercial suites. Changes applying to new customers immediately and to existing customers at their next renewal.
At the same time, Microsoft has added enhanced capabilities at no additional cost, including expanded Copilot Chat experiences, strengthened security protections like Microsoft Defender for Office, and improved IT management through Intune and related services.
Pricing changes include:
- M365 Business Basic: from $6 to $7
- M365 Business Standard: from $12.50 to $14
- M365 E3: from $36 to $39
- M365 E5: from $57 to $60
Read the full announcement here.
Microsoft Partner Code of Conduct
Effective August 1, Microsoft has updated its Partner Code of Conduct to clarify partner compliance expectations.
Microsoft now requires partners to participate in anti-corruption and remediation programs when necessary. These programs are separate from standard compliance training and may include additional business controls, training, and remediation activities.
Microsoft Partner Agreement Update
Microsoft has published an updated Microsoft Partner Agreement (MPA) and CSP Program Guide, with changes focused on privacy, security, compliance, and evolving business practices. For most CSP partners, the updated agreement will automatically take effect Dec. 1, 2026, and no action is required. Partners may review the updated agreement and choose to accept it earlier in Partner Center.
Partner Upsell Planner and Proposal (PUPP) Tool
Have you tried PUPP yet? It’s a tool that helps you execute proactive proposals for Copilot and Security upsell at CSP renewal. Check it out in the Microsoft Hub in Pax8 Academy.
Promotions and Offers
Current promotions include:
- M365 E3 and E5: 10% off three-year term (first-time purchase only, minimum 100 seats, expires Sept. 30, 2026)
- M365 E5: 15% off one-year term (first-time purchase only, expires Sept. 30, 2026)
- M365 E7: 15% off three-year term (minimum 300 seats, expires Dec. 31, 2026) and 10% off one-year term (first-time purchase only, minimum 10 seats, expires Dec. 31, 2026)
- Purview Suite for Business Premium: 50% off one-year term (first-time purchase only, expires Dec. 31, 2026)
- M365 Business Basic plus Copilot Business: 25% off one-year term (maximum 300 seats, expires Dec. 31, 2026)
- Microsoft Copilot Business: 15% off one-year term (maximum 300 seats, expires Dec. 31, 2026)
AI Business Solutions Update
Updated Copilot Margins
Microsoft has increased the standard partner margin for M365 Copilot Business and eligible M365 Business bundles. Eligible offerings include:
- M365 Copilot Business
- M365 Business Basic and Copilot
- M365 Business Standard and Copilot
- M365 Business Premium and Copilot
What Is Copilot Cowork?
Copilot Cowork is an agentic system that plans, executes, and delivers real work. Here’s what it offers:
- Execute long-running, multitask work. Add guidance anytime and work asynchronously, with checkpoints that keep you in control.
- It’s grounded in your work context and powered by the best model for the task. And it connects to the apps and systems you use every day.
- It’s secure, compliant, observable by design, and built for cost control.
Cowork stands out with:
- Work IQ
- Native app integration
- Cloud-native architecture
- Built for collaboration
- Model choice
- Security and governance
With usage-based billing, Cowork can be pay-as-you-go or paid for with Copilot credits. Offers are MACC- and CSP-eligible. Learn more.
August Enablement Update
See our lineup of upcoming events.
Partner Enablement
- August 10: Microsoft 365 Copilot 101
- August 17: Microsoft Security #3
- August 19: Intro to Agent 365
- August 24: Microsoft Security #4
- August 31: Microsoft Azure #2
Hands-On Labs
- August 4: Securing Your Microsoft 365 Tenant
- August 11: Migrate Windows Server to Azure
- August 18: Microsoft 365 Copilot Admin
- August 20: Migrate and Modernize SQL Servers to Azure
- August 25: Microsoft 365 Copilot Agents
- August 27: Document Processing using Azure OpenAI
Bootcamps:
- August 5-6: Copilot Bootcamp
- August 12-13: Modern Workplace Bootcamp
- August 19-20: AI Bootcamp
Follow all of our events here.
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