As Microsoft prepares to sunset its legacy competencies program, the landscape for partner benefits and incentives is rapidly evolving. With the introduction of Solution Partner Designations, partners need to be proactive to ensure they stay competitive. The shift presents both challenges and opportunities for those ready to adapt.
If you’re a Microsoft partner, now is the time to ask: Are your Incentives, Product Benefits (IURs), and Partner Benefits future-proof?
What is Changing for Microsoft Partners?
Legacy Competencies and Incentives
As we approach 2025, partners need to be aware of significant changes that will impact their business strategies and benefits. One of the most notable changes is the discontinuation of legacy silver and gold competencies, which will officially end on January 22, 2025. This shift is part of Microsoft’s broader strategy to modernize its partner program and align it with the evolving technology landscape.
Starting January 22, 2025, partners will no longer be able to purchase or renew legacy silver and gold competencies. These competencies have been a cornerstone for many partners, providing them with valuable benefits and recognition. However, Microsoft is encouraging partners to transition to the new Solutions Partner designations, which offer differentiated benefits and badging.
Incentive Rates for Cloud Solution Provider (CSP)
One of the most important benefits of Microsoft badges are access to the incremental CSP Incentives partners receive as monthly or yearly payouts (cash-back) directly from Microsoft once they earn a badge and enroll into the Microsoft Commerce Incentives program. CSP Incentives can sometimes be twice as profitable as the margins especially for premium licenses and when the customers are purchasing Microsoft Cloud subscriptions for the first time.
Despite the changes to Legacy Competencies, the incentive rates for CSP programs will remain relatively stable next year. This stability is crucial for partners as they plan their financial strategies and forecast their earnings. A notable change for Business Applications partners is the discontinuation of the 10% accelerator for Dynamics 365 Sales Enterprise, and the introduction of a new 7.5% accelerator for D365 Finance and Supply Chain products.
Also for this example let’s also mention that the customer is Net New and that’s why they receive the 15% accelerator:
Example: Modern Work Incentives
To illustrate the incentive structure, let’s look at Modern Work. The table below provides an example of the various accelerators and core incentives available:
Example: Selling Copilot for M365 and Business Premium
(to an on-prem customer that is new to the Microsoft cloud)
Consider a partner selling Microsoft 365 Copilot and Microsoft 365 Business Premium to a customer that was on-prem or with another provider such as Google. The following incentives and accelerators would apply through the Microsoft Commerce Incentives (MCI) program:
By leveraging these incentives, partners can maximize their earnings and drive growth in their business. But that’s not all, the new designations also come with important benefits such as access to more Product Benefits (previously known as Internal Use Right Licenses IURs) as well as product support. Designations are also required to activating Specializations which enable partners to achieve co-sell status with Microsoft as well as receive incentives for delivering customer engagements such as pre and post sales workshops.
Change can be Complicated… We Make it Simple.
To ensure you are fully leveraging all available incentives and programs, we invite you to schedule a 30-minute call with Majd Madina. During this call, Majd will help you map out any missed incentives and identify the programs most relevant to your business. We understand how complicated the Microsoft programs are, and we specialize in making it simple, clear, and profitable!
MEET YOUR CONSULTANT:
MAJD MADINA, Partner Channel Consultant
Majd started his career at Microsoft over 20 years ago as a product marketing manager and managed the strategic partnerships with global players like HP, Dell, and Lenovo. For 20 years, Majd has closely followed Microsoft product development in the areas of security, office, virtualization, and business products. He has intimate knowledge of the workings of the Microsoft ecosystem and how partners can maximize their investment with Microsoft. Majd has managed the partner success programs for indirect providers such as Sherweb and AppRiver OpenText, working directly with Microsoft Partners. Majd has also helped direct community growth and networking at CompTIA and has a wide network of Microsoft professionals and partners around the world.
Not quite ready to book a call? That’s okay!
We have a wealth of resources to get you started on exploring the world of Microsoft Incentives. Contact us when you’re ready to chat, we’ll be here! (But, don’t wait too long, as many of these changes take effect in Jan. 2025)
Watch our On-Demand Webinar:
Download the Microsoft Incentives and Rebates Program Guide:
