Exciting Changes to Microsoft Commerce Incentives for FY25: Accelerating Partner Growth with Strategic Investments

As of October 1, 2024, Microsoft has launched new and refreshed opportunities within the Microsoft Commerce Incentives (MCI) program. These updates are designed to support partners in maximizing growth potential across key areas such as Azure, Business Applications, Modern Work, and Security. In FY25, Microsoft is doubling down on its commitment to partners, refining last year’s successful initiatives and introducing strategic investments to accelerate partner success.

Here's a breakdown of the key updates across Microsoft's core cloud solution areas:

Azure: Enhanced Support for Migrations and Innovation

1. Azure Migrate and Modernize (AMM) & Azure Innovate: To accelerate deal velocity and support diverse customer needs, we’ve expanded project size offerings and eligible scenarios under our AMM and Azure Innovate programs. These offerings continue to provide essential support for partners navigating customers through their cloud adoption journey.

2. Azure Cloud Solution Provider (CSP): Our CSP focus remains on acquiring small and medium-sized customers through the Azure customer add accelerator and extending the existing workload accelerator to include security solutions. Additionally, partners can now earn incentives from Azure CSP in combination with AMM and Azure Innovate projects, increasing earning potential for applicable Azure engagements.

3. Hosting Incentives: The current hosting incentives remain unchanged in FY25, with no adjustments to incentive rates or structure.

Business Applications: Streamlined Activity-Based Offerings

1. Partner Pre-sales and Post-sales Activities: Launched in July 2024, our streamlined activity-based offerings are tailored to align with Microsoft’s Customer Engagement Methodology. These offerings focus on enhancing sales enablement and delivering precise outcomes through specific modules. This approach will continue evolving throughout FY25 to better serve partners.

2. BizApps Presales Advisor Incentives: Formerly known as Online Services Advisor (OSA), the BizApps Presales Advisor incentives will continue in FY25 with consistent rates for Finance and Supply Chain customers across all segments. Rates for Customer Engagement and Activity/Device solution plays will remain differentiated by customer segment.

3. Low-Code Solution Engagements: We’re expanding beyond Power Platform to include new engagements such as Low Code Vision and Value and Low Code Solution Deployment. These offerings aim to drive customer intent and close significant deals, empowering partners to lead in the low-code market.

4. Dynamics 365 New Commerce & Legacy CSP Incentives: We remain committed to supporting Business Central and Copilot Sales/Service/Finance accelerators. New additions include Copilot Studio and Finance & Supply Chain accelerators, while we phase out the Sales Enterprise Accelerator to better align with the small and medium business (SMB) strategy.

Modern Work: Evolving Incentives for Maximum Impact

1. Modern Work CSP Incentives: CSP continues as our flagship breadth motion, focusing on small, medium, and corporate customer segments. Our focus remains on strategic products like Microsoft 365 E3, Microsoft 365 E5, Business Premium, and Copilot. The incentive earning potential for select Modern Work and Security products has increased to align with the broader small and medium-sized corporate (SMC) strategy.

2. Modern Work Usage: As part of an evolution in strategy, Modern Work workloads will no longer be eligible for usage incentives. Instead, we are focusing on more tailored, funded engagement opportunities.

Security: Expanding Earning Opportunities

1. Data Security Engagements: New to FY25, partners can now earn a flat fee for completing engagements that drive the deployment and adoption of Microsoft Purview solutions. This opportunity began in September 2024 and is designed to create customer intent around Microsoft’s data security offerings.

2. Security Usage Incentives: The Security usage incentives program continues to focus on key strategic workloads such as Microsoft Entra ID P2, Microsoft Defender for Endpoint, and Microsoft Purview Information Protection. Partners will have the opportunity to earn rewards based on growth beyond the High Water Mark, with maximum earning caps by workload.

3. Security CSP Incentives: Our focus remains on SMC segments in CSP, with adjustments to incentive rates to prioritize high-impact offers like Microsoft 365 E3, Microsoft 365 E5, and Business Premium. Security solutions will see further earning opportunities through strategic accelerators in FY25.

These updates position partners to drive growth through deeper engagement with Microsoft’s strategic priorities, such as Copilots on every device, AI adoption, and securing the cyber foundation of every customer. By focusing on targeted investments, Microsoft is ensuring partners have the tools and incentives to succeed in today’s fast-paced cloud market. Stay updated with the latest MCI developments and take advantage of the new opportunities to maximize your success in FY25!

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