Check out the latest updates on what managed service providers (MSPs) and managed intelligence providers (MIPs) need to know about Microsoft in May 2026.
Program Updates
Microsoft Extended Service Terms
Starting this month, Microsoft has removed the free grace period for nonrenewed subscriptions (this date was pushed back). Through this change, Microsoft will launch the extended service term and supporting features, which will apply to license‑based services across all channels and markets.
Pax8 is not offering extended service terms at this time. As a reminder, by default, Pax8 has auto-renew set to “on” for every purchase. If you don’t want to renew, you need to schedule a cancellation for time of renewal or cancel within the seven‑day window post-renewal.
New Process to Redeem Cloud Benefits
Starting July 2026, Microsoft has modernized how partners redeem license-based cloud benefits. Benefits are 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 your partner benefits and can only be redeemed on tenants under that account.
Benefit expiration is now aligned to your partner benefits package end date, with no 30‑day grace period. There’s no change to the benefits themselves.
SharePoint Online and OneDrive for Business: Retirement of Standalone Plans
Microsoft is evolving its cloud storage and collaboration portfolio and has announced the retirement of standalone SharePoint Online (SPO) Plan 1 and Plan 2 as well as OneDrive for Business (ODB) Plan 1 and Plan 2 offerings.
Partners should begin identifying impacted customers and preparing transition plans early. Microsoft is expanding storage options and providing an extended runway to support smooth customer migrations.
Key dates to know are:
- End of sale: June 2026 (no new tenants after May 31; renewals only)
- End of life: January 2027 (no renewals)
- End of service: December 2029 (all standalone plans fully retired)
Microsoft 365 Pricing and Feature Updates
Starting July 1, the following Microsoft 365 updates will take effect:
- Microsoft 365 Business Basic: $6 increases to $7
- Microsoft 365 Business Standard: $12.50 increases to $14
- Defender: SafeLinks Lite and +50GB Exchange Online storage
- Microsoft 365 Business Premium: no price increase
- +50GB Exchange Online storage
- Microsoft 365 E3: $36 increases to $39
- Intune: remote help, advanced analytics, Intune P2
- Defender: protection against email/collab threats
- Windows: quick machine recovery, point-in-time restore, cloud rebuild, autopatch update readiness
- Microsoft 365 E5: $57 increases to $60
- + all new Microsoft 365 E3 capabilities
- Security Copilot
- Purview: browser data loss prevention
- Intune: cloud PKI, endpoint privilege management, enterprise application management
New Partner Uplift and Proposal Planning platform (PUPP)
The Partner Uplift Planner and Proposal (PUPP) Tool is a new self‑service CSP renewal and growth platform available from Pax8 and Microsoft, designed to help partners turn renewal moments into AI and Security attach opportunities. PUPP consolidates customer signals, Microsoft offer details, and partner profitability insights—bringing together data that’s traditionally scattered across ASPX, Cloud Ascent (CLAS), Partner Center, and spreadsheets. In one place, partners can evaluate offer economics, identify the right upgrade paths, and generate customer‑ready proposals, making it easier to move from renewal planning to proactive growth conversations.
AI and Business Solutions Updates
New SKU Announcements
Agent 365
Announced at Ignite and available now, Agent 365 is the central control plane for enterprise AI agents. Capabilities include:
- Observing and monitoring agent activity
- Governing agents through their full lifecycle
- Securing agent access and behavior across the organization
This platform lets partners help customers manage AI agents safely and at scale. It’ll be available for $15 user/month.
Microsoft 365 E7 – The Frontier Worker Suite
Also available as of this month, this new integrated suite combines:
- Microsoft 365 E5
- Microsoft 365 Copilot
- Entra Suite
- Agent 365
The suite is priced at $99/user/month, offering savings of about $18/user/month (15%).
CSP Introductory Offers
To lower the barrier for entry to Microsoft 365 E7, Microsoft is offering one-year introductory offers starting this month for CSPs. They are:
- 10% off for 10+ seats
- 15% off for 100+ seats
Promotions and Offers
Partners can take advantage of multiple active promotions happening now. Please take note that offers will expire later this year, depending on the date. Current promotions include:
- Microsoft 365 E3 and E5: 10% off three-year terms, first-time purchases only (expires June 30, 2026)
- Microsoft 365 E5: 15% off one-year term, first-time purchases only (expires June 30, 2026)
- Microsoft 365 Copilot: 15% off one-year term, new Microsoft 365 Copilot customers with qualified pre-req SKUs (minimum 10 seats, maximum 300 seats) only (expires June 30, 2026)
- Purview and Defender Suite: 10% off net price for three-year contracts, first-time purchases only (expires July 1, 2026)
Pax8 + Zensai Customer Enablement Promo
To help you unlock your clients’ potential, Zensai offers an AI-powered Human Success Platform that combines learning, engagement and performance management. It can integrate directly into Microsoft 365, including Teams, SharePoint, Outlook and Copilot. Pax8 partners who sell a net-new subscription of more than 10 licenses of Copilot Business, Copilot for Nonprofit or Copilot Business Premium Bundle licenses are eligible to get the same number of licenses of Zensai free for a year for their clients.
Enroll here — the promotional period has been extended through June 30, but it will end once funding runs out, so act now.
SMB AI Success Stack
Microsoft’s SMB AI Success Stack bundles Copilot for Business, Business Premium and the Purview Suite at discounted rates through June 30. The bundle is available for $32, with Copilot dropping from $21 to $18 and Purview from $10 to $5. Take advantage of this pricing before Microsoft’s broader Modern Work price increases in July.
Business Application Updates
The Power Apps per app SKU that had previously been removed from the public price list should be available in the CSP channel price list now. This change wasn’t intended to apply to the CSP channel, but a temporary operational issue resulted in it not appearing on CSP price lists in March.
Enablement Updates
Partner Enablement:
- May 6 – Copilot Agents
- May 11 – Level Up: MS Security
- May 13 – Copilot Monitoring & Insights
- May 18 – MS Security #4
- May 20-21 – Pax8 + Microsoft Bootcamp (virtual)
- May 27 – Azure Virtual Desktop
- June 3 – Azure Migrate
- June 22 – Microsoft Security #5
- June 29 – Microsoft Security #6
Hands-on labs:
- May 5 – Fabric – Analytics
- May 7 – Foundry – AI Agents
- May 12 – Securing M365 Before Implementing Copilot
- May 14 – Azure – Get Started
- May 26 – Copilot Agents
- June 18 – Fabric – Analytics
- June 23 – Microsoft Purview
- June 25 – Azure Virtual Desktop
- June 30 – Copilot Practice Building Program
Pax8 Events:
- June 7–9 – Beyond 2026 (Salt Lake City, Utah)
Follow all of our events here.
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