Pax8 and Microsoft Updates for January 2025

Pax8
Pax8 and Microsoft Update January 2025

To stay current with all things Microsoft in 2025, be sure to register for our monthly Microsoft partner update webcast. Below are the top takeaways from our first update of the year.

Program Updates

Partner-to-partner transfer tool now generally available in Pax8 Marketplace
Microsoft has recently unveiled the ability for partners to transfer between indirect providers mid-commitment. Partners no longer need to wait until renewal or the end of their commitment to move within the channel and can find the SKU in our Marketplace.

CSP Data Quality Enhancements
Pax8 has seen an increase in Microsoft audits of partner center information. Please ensure your global admin is regularly checking partner center notifications via the action center to ensure your CSP enrollment is always in good standing. Please remember to keep your legal information up to date and if you need to make a change to any legal information, you are prepared to submit supporting documentation to pass the audit. If you have any questions, please contact Microsoft support directly. Pax8 will not be able to support due to compliance reasons set by Microsoft.

Microsoft AI Cloud Partner Program (MAICPP)
A reminder: The last day to purchase or renew legacy MAICPP benefits will be January 21, 2025. If eligible to purchase, these benefits will remain active for the next 12 months. Otherwise, partners with Silver or Gold benefits will only be able to earn incentives and rebates until September 30, 2025, and will need to attain a Solutions Partner designation or specialization to continue to earn incentives and rebates.

Key licenses partners can use within this program for their internal business purposes include:

  • Copilot for Microsoft 365 (Partner Success Expanded Benefits only)
  • Copilot for Sales, Finance and Service (Partner Success Expanded Benefits only)
  • Windows Server (Partner Success Core and Expanded Benefits only)
  • Defender for Endpoint P2
  • Entra ID P2

Storage Policies for Unlicensed OneDrive
Storage policy updates for unlicensed OneDrive as of January 27, 2025, include the following:

  • Any OneDrive user account that has been unlicensed for more than 93 days will either be moved to the recycle bin and subsequently permanently deleted or archived if they fall under a retention policy.
  • Reactivation fees and monthly storage fees will be applied to archived accounts.
  • These changes do not apply to Education (EDU), GCC or DoD customers.

To help your customers navigate these changes, identify which ones are using OneDrive without a license and assess their usage patterns. Be sure to inform them about these upcoming changes and the potential impact on their services and costs. You may advise them to upgrade to a licensed Microsoft 365 plan to avoid additional charges and help with data migration and backups.

Securing the Partner Ecosystem
Previously in October 2024, Microsoft made enabling MFA a requirement for all Azure users in the Azure portal. Please be aware that this change is now being rolled out to all Microsoft 365 users accessing the Microsoft 365 Admin Center effective February 2025. For assistance, please open a support ticket with Microsoft.

Also, be aware that Microsoft will block usage on subscriptions with no previous activity within the past 12 months to reduce vulnerabilities for fraudulent activity. These subscriptions will be deleted 90 days after the block.

Microsoft 365/Office 365 Changes
As of October 2024, Microsoft is now requiring all enterprise purchases to acquire Teams separately.

Microsoft Pricing Updates
As of January 1, 2025, partners can receive 15% off the net price of Microsoft 365 E5 annual commitment subscriptions for eligible customers. This promotion will be available worldwide for new-to-offer customers, for subscriptions between 1–2,400 licenses. The offer will be available through June 30, 2025.

Starting April 1, 2025, Microsoft will implement a 5% price adjustment across all new and renewing annual paid monthly subscriptions. Monthly, paid monthly subscriptions will not be impacted, and the current 20% price adjustment will remain. At the same time, Teams Phone Standard licenses will be priced at $10 per user, per month, with Power BI Pro licenses at $14 per user, per month, and Power BI Premium licenses at $24 per user, per month.

Microsoft Virtual Training Days
Get free training and certifications at Microsoft virtual training days, which are offered across different languages and time zones. See a full list here.

2025 Q1 Renewals

Priorities for Renewals

Pax8 recommends partners focus on two main priorities in the first quarter, when nearly half of CSP renewals take place. Firstly, upsell high-propensity customers—those most likely to upgrade, expand or attach products. Start conversations early to develop a deeper understanding of their needs. Secondly, renew your remaining customers on time, the recapture rate is 20% higher for earlier renewals.

Additionally, try attaching Microsoft 365 Copilot or getting customers the prerequisite licenses for Copilot. You can also upsell to premium offerings, such as Business Premium or Microsoft 365 E3 or E5. Your upsell opportunity can focus around developing premium security, so your clients can properly prepare for AI.

Lastly, build 90-day renewal plans with your clients by utilizing such strategies as mapping out upcoming renewals, leveraging engagement resources and using incentives and promos to close deals.

Accessing Your Renewal Data in CloudAscent
Any partner that has existing transacting customers with Microsoft can see renewal data in CloudAscent. Navigate to partner.microsoft.com and select Partner Center to log in and download reports. To accomplish this, within the Downloads Hub, first create a new report, ensure you have cloud product performance selected, have chosen the basic download option and download “Cloud Ascent – M365 Propensity.” Once open, navigate to Column “AS” to view and filter upcoming CSP renewal dates.

Pax8 Microsoft 365 Copilot Reward Program
This program has been extended to January 31, 2025. Partners will receive one month free for every qualifying Copilot for Microsoft 365 license they purchase (a value of $30). Seats must be purchased on a net new subscription for a 12-month term. The rebate is valid only for the initial quantity ordered and not for quantity increases. Register here.

Microsoft has also extended a direct 15% promotion through March 31, 2025, with a 10-seat minimum order. Eligible subscriptions will automatically be adjusted in the Pax8 Marketplace. Learn more at aka.ms/CopilotCSPPromoFAQ.

Enablement Updates

Upcoming sessions include:

Modern Work and Copilot hands-on labs:

  • February 11: Deploying Applications Using Microsoft Intune
  • February 13: Access Management with Microsoft Entra
  • February 18: Identity Governance with Microsoft Entra
  • February 25: Mitigating Threats Using Microsoft Purview

Azure hands-on labs:

  • January 23: Microsoft Fabric
  • February 6: Azure Arc
  • February 20: Defender for Cloud

Global events:

  • February 4: Cybersecurity Masterclass – Bristol
  • February 18: Cybersecurity Masterclass – Germany
  • February 20: UK Launch Briefing – virtual
  • March 11: Cybersecurity Masterclass – Helsinki
  • March 13: Cybersecurity Masterclass – Stockholm
  • March 18: Cybersecurity Masterclass – Zwolle
  • March 19: Mission Briefing – Manchester
  • April 10: UK Launch Briefing – virtual

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