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 will take effect on 1st July 2026. Nonprofit pricing will be 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 365 E7: The Frontier Suite launch
Microsoft announces M365 E7: “The Frontier Suite”, a new bundle designed to bring AI, security, identity, and governance together in one platform.
Launching 1 May 2026 at USD$99 per user/month, Microsoft 365 E7: Frontier Suite combines:
- Microsoft 365 E5 + Copilot + new Agent 365 platform
- Agent 365 acts as a control plane to observe, manage, and secure AI agents across the organisation
- Supports multiple AI models, including next-gen OpenAI models and Anthropic’s Claude
Microsoft offers one-year introductory promo pricing for M365 E7:
- 10% off for 10+ seats
- 15% off for 100+ seats
Agent 365
Available from 1 May 2026 at USD$15 per user per month, Agent 365 serves as the central control plane for enterprise AI agents. It enables organisations to:
- Observe and monitor AI agent activity
- Govern agents across their entire lifecycle
- Secure agent access and behaviour at an organisational level
Licensing prerequisites:
- Enterprise customers: M365 E5
- Frontline: Defender + Purview F5
- SMB customers: M365 Business Premium
Microsoft Promotions
Microsoft 365 Copilot Business
- 15% discount (minimum 1; max 300)
- End date: 30 June 2026
Business Standard + Copilot Business
- 35% discount for new Copilot customers (minimum 10 licenses; max 300)
- End date: 30 June 2026
Business Premium + Copilot Business
- 25% (minimum 10 licenses; max 300)
- End date: 30 June 2026
Purview Suite for Business Premium
- 50% discount
- End date: 30 June 2026
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 & E5 3-Year
- 10% discount for new-to-offer customers committing to three-year terms (minimum 100 licenses).
- End date: 30 June 2026
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.
Microsoft is retiring standalone SharePoint Online and OneDrive for Business plans (Plan 1 & 2)
This change reflects low demand for standalone plans and Microsoft’s continued shift toward Microsoft 365 suites as the primary way customers get SharePoint and OneDrive services.
- Key dates:
End of sale: 31 May 2026 – no new customers starting 1 June 2026. Existing subs will continue to auto-renew
End of life: January 2027 – no further renewals
End of service: December 2029 – fully retired. Customers must transition to M365 suites, capacity packs, or PAYG
Microsoft 365 Business, E3, and E5 suites will be the primary path forward.
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
Key dates:
- 16 June – GA + grace period starts
- 30 June – Grace period ends
- 1 July – Billing required or access stops
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.
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.
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.
MCAPS Start for Partners Is 22 July 2026
Microsoft is kicking off FY27, and there are a couple of dates partners should have on their radar.
22 July – MCAPS Start for Partners (free, online). It’s the earliest view of where Microsoft is investing and what that actually means for partners: Register here.
Expect straight talk on FY27 priorities – including Frontier Transformation, moving from AI pilots to real scale, and where to focus across co-sell, Marketplace, incentives, and skilling.
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*
- Promotional Period Enrollment date – 30 June 2026
- 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
Copilot Business Partner Launch Pack
Pax8 partners can now register their interest for the Copilot Studio Partner Launch Pack, a Pax8‑exclusive opportunity to kick‑start your Agentic practice.
This launch pack gives you hands‑on experience building your first Copilot Studio agent using Pax8 Marketplace data, starting with the Microsoft Renewal Notifier Agent – your first step in the Pax8 Agentic Journey.
Eligible partners who successfully deploy the agent can receive a one‑off USD $100 (or local equivalent) credit.
- Promotion period: 14 April – 30 June 2026
- Eligibility: APAC Pax8 partners transacting $100+ in Microsoft NCE (new Azure plan required)
- Register your interest to get access to how‑to guides, agent instructions, and solution engineer support to help you get started.
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.
