To stay ahead in the Microsoft ecosystem, be sure to register for our monthly Microsoft partner update webinar. Below are the key highlights from our December 2025 session for the APAC region.
Microsoft 365 Price Increases and New Capabilities
Microsoft announced new AI, security and management capabilities coming to Microsoft 365 in 2026. To support these enhancements, global price adjustments will take effect on 1 July 2026. Nonprofit pricing will be adjusted in line with commercial pricing, as nonprofit discounts are tied to commercial rates.
Partners should review upcoming changes across Business, Enterprise and Frontline plans and proactively communicate pricing updates to customers.
Key product updates:
These updates reflect Microsoft’s commitment to delivering advanced AI-powered productivity and security features, including Copilot Chat integration, enhanced Defender for Office security and expanded endpoint management capabilities.
Microsoft Copilot Business and Bundles Launch
Microsoft is launching new SMB-focused Copilot SKUs and bundled offers starting 1 December 2025. These options are designed to make AI-powered productivity more accessible for small and medium-sized businesses.
Note: The below pricing is in USD per user per month/paid yearly. Please check the Pax8 Marketplace for pricing in local currencies.
Microsoft 365 Copilot Business Standalone
This is a net new SKU that will launch with the same functionality as the current M365 Copilot ($30 per user/month)
- Microsoft 365 Copilot Business SKU
Price: $21 per user/month
Requires M365 Business plan as a prerequisite
Supports up to 300 users
No seat minimum
Brings AI-powered productivity tools to SMBs
Note: Customers already on M365 Copilot pricing must wait for contract renewal to switch to SMB SKUs.
Bundled Offers
Microsoft will bundle M365 Copilot Business with existing Microsoft 365 Business SKUs:
- Business Basic + Copilot Business – $27 per user/per month
- Business Standard + Copilot Business – $33.50 per user/per month
- Business Premium + Copilot Business – $43 per user/per month
Bundle Requirements:
- Seat minimum: 10
- Seat maximum: 300
- Bundles transact as one purchase but deliver two products to the tenant
Note: Customers already on M365 Copilot pricing must wait for contract renewal to switch to these SMB SKUs.
Introductory Promotions (1 December 2025 – 31 March 2026)
- M365 Copilot Business – 15%
- *seat requirements for Copilot Business promo: 1 minimum, 300 maximum
- Business Standard and Copilot Business – 35%
- Business Premium and Copilot Business – 25%
- Purview Suite for Business Premium – 50%
- *seat requirements for Bundles promo: 10 minimum, 300 maximum
Promotions will be available from 1 December 2025 to 31 March 2026 (locks the discounted pricing for 12 months).
More information:
Security Copilot Now Included in Microsoft 365 E5
Microsoft Security Copilot is now included with Microsoft 365 E5, effective 18 November 2025. This update introduces new Microsoft-built agents across Defender, Entra, Intune and Purview to help security teams automate investigations and respond faster.
Existing E5 customers will receive the included version at no additional cost, with rollout expanding across tenants over the coming months.
Program Updates: Fast and Easy Microsoft Transfers
Pax8 released the Migrations feature on 10 December 2025 to simplify Microsoft change of channel. The guided experience provides faster transfers, improved tracking and reduced operational burden for partners managing Microsoft subscriptions.
The feature allows:
- Partner-initiated migrations for Microsoft subscriptions directly in the Pax8 Marketplace
- Real-time progress tracking and visibility into errors or expiration timelines
- Bulk migration support for partners managing large client portfolios
- Automatic company and subscription creation within Pax8 once transfers complete
- Service delivery integration for any migration that needs additional support
These capabilities help partners save time, reduce service escalations and improve accuracy across every transfer.
For detailed steps and preparation tips, reference the Pax8 Migrations Helpdocs.
Improve Your Security Posture to Retain CSP Authorisation
Microsoft is reminding indirect resellers to strengthen their security posture to maintain Cloud Solution Provider authorisation. Annual validation of mandatory security requirements begins in January 2026. To stay compliant and reduce risk, partners must provide and maintain a monitored security contact in Partner Center, enable MFA for all administrative users and regularly review and reduce privileged roles. Partners can track progress and improve security using the Security workspace in Partner Center, and should review available guidance including the Security requirements page, CSP authorisation FAQ and security best-practices.
Microsoft Rebates Payouts
Microsoft has updated how FY26 CSP incentives are calculated and paid, resulting in late payouts.
Timelines:
- 1 October 2025: new CSP incentive eligibility requirements and rebates structure took effect
- Late December 2025: October/November earnings will appear in the Partner Center Earnings report
- 15 January 2026: first CSP payout under the new FY26 model, including October and November earnings; July to September 2025 earnings will also be recalculated using FY26 rebates structure and updated in Partner Center
- Mid-February 2026: payout of December earnings, plus the retroactive July-September adjustment
Microsoft Customer Agreement Acceptance
Any customer who signed an MCA before April 2023 is required to sign the newest Microsoft Customer Agreement
- 7 October 2025: Any customers with an outdated (before 1 April 2023) or missing MCA will need to sign a new MCA.
- 5 January 2026: For all new customers, acceptance via Pax8 Marketplace by providing the customer’s signature details (partner cannot put their own contact details and accept on customer’s behalf) is required
- Pax8 will be prompting all customers’ profiles to enter customer signatory details at the time of purchase or modification, including:
- First name (Customer Signatory Authority)
- Last name (Customer Signatory Authority)
- Email address (Customer Signatory Authority)
*Failure to have the customer signature details for MCA might result in failed orders.
Partner of Record Requirements
Starting 1 December 2025, Microsoft enforces the new Partner Location Account (PLA) requirements. These changes are designed to ensure that only authorised indirect resellers are assigned as Partner of Record (POR) on new Cloud Solution Provider (CSP) subscriptions.
Starting 1 December 2025, indirect resellers:
- Must use Partner Location ID (not Global ID) on Pax8 orders
- Can only complete orders in countries Pax8 is authorised in (US, Canada, Europe, Australia, New Zealand, Southeast Asia)
- Can only complete orders in countries in which the indirect reseller is authorised
- Must have active reseller status in Partner Center
Microsoft Promotions
- Microsoft 365 Copilot
- 15% discount for new Copilot customers (minimum 10 licenses; max 2,400)
- End date: 30 June 2026
- Microsoft 365 E5
- 15% off for net-new E5 customers
- End date: 30 June 2026
- Microsoft 365 E3 and E5 3-Year
- 10% discount for new-to-offer customers committing to three-year terms (minimum 100 licenses)
- End date: 30 June 2026
- Microsoft Defender Suite and Purview Suite
- 10% discount on three-year commitments (minimum 100 seats)
- End date: 31 December 2025
- Windows 365
- 20% discount for new Windows 365 customers (available monthly or annually)
- End date: 30 April 2026
Pax8 Microsoft Copilot Rewards Program
Pax8 is offering partners one month free for every qualifying Copilot for Microsoft 365 license they purchase (value of $30). Partners must opt-in through a registration form, and seats must be purchased on a net new subscription for a 12-month term. The rebate is valid only for the initial quantity ordered (quantity increases are not eligible).
Pax8 is also providing a suite of enablement resources to help you go-to-Market with Copilot, including editable PowerPoint templates, a campaign-in-a-box and end-user training hosted by Microsoft. Whether you’re just getting started or looking to scale your Copilot practice, these tools can help you accelerate adoption and drive revenue.
APAC Pax8 Microsoft Enablement Sessions
Pax8 and Microsoft continue their collaboration through The Power of Microsoft Webinar series, highlighting how Microsoft solutions help organisations innovate faster, work smarter and lead confidently in an AI-driven world.
