Sales updates
M365 Price increases and new capabilities – 1 July 2026
Microsoft announced new AI, security, and management features coming to Microsoft 365 in 2026. Packaging updates start rolling out from June 2026, with advance notice to customers.
To support these enhancements, global price adjustments took effect on 1st July 2026. Nonprofit pricing is adjusted in line with commercial pricing, as it is tied to commercial rates through a fixed percentage discount.
Price Increase
- M365 Business Basic – 16%
- M365 Business Standard – 12%
- M365 Business Premium – 0%
- M365 E3 – 8%
- M365 E5 – 5%
- M365 F1 – 33%
- M365 F3 – 25%
See the full list of affected products and learn more here. Changes apply to new customers immediately and to existing customers at their next renewal.
Microsoft Promotions
Copilot promos
Business
- Microsoft 365 Copilot Business (annual commit): 14.29% off, all customers, 1-300 seats, through 31 Dec 2026
- Business Basic + Copilot Business bundle (annual commit): 25% off, all customers, 1-300 seats, through 31 Dec 2026
Enterprise
- Microsoft 365 Copilot (annual): 15% off for 300-9,999 seats, or 30% off for 1,000-9,999 seats, through to 30 Sep 2026
- Microsoft 365 Copilot (3-year commit): 15% off, 300+ seats, through 30 Sep 2026
Microsoft 365 Enterprise suites
- M365 E3 (annual commit): 20% off, 250-9,999 seats, through 30 Sep 2026 – targeted customers
- M365 E5 (annual commit): 15% off for new-to-E5 customers, through 30 Sep 2026
- M365 E3 & E5 (3-year commit): 10% off, new-to-E3/E5 customers, through 30 Sep 2026
- M365 E7 (annual commit): 10% off (10+ seats) or 15% off (100+ seats), all customers, through 31 Dec 2026
- M365 E7 (3-year commit): 15% off (300+ seats), all customers, through 31 Dec 2026
Windows 365
- Business edition: 25% off, up to 300 seats, all customers, through 30 Jun 2027
- Enterprise edition: 20% off, all customers, through 30 Sep 2026
Security
- Purview Suite for Business Premium: up to 50% off when paired with Copilot Business / Business Premium, through 31 Dec 2026
- Microsoft Sentinel 50 GB commitment tier: up to 32% off, through 31 Dec 2026 – locks promotional pricing to 31 Mar 2027
Dynamics
- Dynamics 365 Bridge to Cloud (3-year): 30% off for existing on-prem customers migrating to the cloud, through 31 Dec 2027.
Adjustment to Copilot Business Promo Offers
Microsoft has removed the “one-time only” restriction that previously caused some partners to delay purchasing Copilot Business until their renewal dates. Customers with renewals between now and 30 June 2026 can upgrade today and renew at the same discounted price.
Copilot Cowork General Availability
Microsoft Copilot Cowork is now generally available, but the commercial model has changed.
- No longer included in M365 Copilot / Copilot Business
- Moves to usage-based billing (Copilot Credits)
- Requires an Azure subscription linked to the tenant
- Still needs a base M365 Copilot license
Billing model
- PAYG – based on usage (agents, services, tasks)
- Pooled credits – tenant-level with controls + annual commit
Identify customers using Cowork and start conversations on billing and consumption.
Ensure Azure is connected before 30 June 2026 for billing. Learn more.
Microsoft Updates for SMB Copilot
Starting 1 July 2026, Microsoft is transitioning the promo Copilot Business bundles onto permanent SKUs at the same promo pricing:
- Microsoft 365 Business Standard with Copilot
- Microsoft 365 Business Premium with Copilot
These SKUs will remain at the same pricing level as the current promo offers.
Microsoft is also launching a new 25% promo for Microsoft 365 Business Basic with Copilot Business (available till 31 December 2026). The current 15% off promo for Copilot Business has been extended till 31 December 2026.
Use this change to standardise your Copilot positioning and remove reliance on short-term promo pricing.
Microsoft Copilot Business TRIAL launch – Copilot in 30
Microsoft launches a 30-day Copilot Business trial starting 1 August 2026. This motion will help partners land first-time Copilot wins through a guided, 30-day SMB evaluation – a free 25-seat, 30-day Microsoft 365 Copilot Business trial, available through CSP for a limited time.
- 25-user, 30-day Microsoft 365 Copilot Business trial
- $0 trial SKU, live on the Pax8 Marketplace 1 August 2026
- available for a limited time (~H1 FY27)
- One trial (25 users) per customer – no extensions or quantity changes mid-trial
- It auto-renews to a paid subscription by default (25 seats, annual/monthly billing) with a 7-day cancellation window. Partners can cancel, adjust the renewal seat count, term, and billing frequency before conversion.
Best-fit customers: Existing M365 Business Standard/Premium accounts, new to Copilot (no paid Copilot licenses), with up to 300 users.
Call to action:
- Be Customer Zero: complete the Copilot Business MicroSkilling so you can speak to the trial from hands-on experience.
- Know the motion: review the Partner Playbook and Customer Kit
- Get first trials in the ground: aim to have each active M365 Business customer provision their trials in the first 30 days, then support adoption and conversion.
- Identify: use Pax8 Microsoft NCE Tracker/Renewals report under the Subscriptions tab on the Pax8 Marketplace to target your customers. You can also use ASPX data from Microsoft. Launch a campaign to new-to-Copilot customers (campaign email templates are in Partner Playbook and Customer Kit)
- Activate: provision trial via the Pax8 Marketplace (available 1 August 2026), help customers configure settings, assign licenses, and ready users.
- Convert: review outcomes and move to paid. Lead with the Copilot/bundle promos.
Program Updates
New Partner Uplift and Proposal Planning platform (PUPP)
The Partner Uplift Planner and Proposal (PUPP) tool is a new self-service platform from Pax8 and Microsoft, designed to help partners maximise renewal opportunities and drive AI and Security growth.
PUPP brings together key customer insights, Microsoft offer data, and partner profitability metrics – all in one place. It consolidates information that’s typically spread across ASPX, Cloud Ascent (CLAS), Partner Center, and spreadsheets, making renewal planning more streamlined and actionable.
With PUPP, partners can assess offer economics, identify the most relevant upgrade paths, and quickly generate customer-ready proposals – helping shift conversations from simple renewals to proactive, value-led growth.
New process to redeem Partner Cloud Benefits
Microsoft is modernising how partners redeem cloud licence benefits. Benefits will now be redeemed via a guided experience in Partner Center using a $0 purchase flow, replacing key‑based activation and ensuring benefits are securely tied to the partner’s billing account.
Benefit expiry dates are now aligned to the partner benefits package activation date (not the redemption date), which means the 30‑day grace period has been removed.
This change does not alter the benefits themselves – only how they’re redeemed and managed. The new experience is already live for Partner Success Expanded in Australia, with Partner Launch Benefits and Partner Success Core Benefits rolling out shortly. Other regions will transition by the end of July 2026.
Microsoft Skilling and Certification
Partners who invest in upskilling are better positioned to deliver greater value to clients, differentiate themselves in a competitive market, and unlock new revenue opportunities. Earning Microsoft certifications also helps you secure the 25 points required for incentives and rebates in the Microsoft AI Cloud Partner Program (MAICPP), directly supporting both growth and profitability.
To help you get there, Pax8 provides free certification vouchers – reach out to your Channel Account Manager to get started.
Microsoft has replaced MS‑900 (Microsoft 365 Fundamentals) with a new intermediate option: AB‑900: Microsoft Copilot Fundamentals across both Enterprise and SMB tracks.
On top of that, Microsoft is rolling out new AI-focused cert paths (AI Business Professional, AI Transformation Leader, Agentic AI Business Solutions Architect) and has introduced AB‑620: AI Agent Builder Associate in beta to support partners building real AI capability.
Copilot Business + Zensai Offer
Zensai is an AI-powered Human Success Platform that integrates directly into Microsoft365 (including Teams, SharePoint, Outlook, and Copilot). Its mission is to help organizations unlock human potential by combining learning, engagement, and performance management in one seamless experience.
M365 Copilot Business & Zensai customer enablement promotional program is designed to provide partners with the incentive to sell a net new subscription of over 10+ licenses of Copilot Business, Copilot for Nonprofit or Copilot Business Premium Bundle licenses. They are then eligible to get the same amount of licenses Zensai free for a year.
- Note that Zensai is an annual commit, billed monthly
- Within 30 days of net new purchase of Copilot, partner must enroll through the form https://pages.pax8.com/Pax8-Copilot-Zensai.html
- Within the same 30 days of purchase and enrollment, partner must check out Zensai licenses to access the promotion
APAC Pax8 Microsoft enablement sessions
Pax8 and Microsoft continue their strong collaboration with The Power of Microsoft Webinar series, exploring how Microsoft’s solutions are helping organisations innovate faster, work smarter and lead confidently in an AI-driven world.
