Microsoft CSP Partner Program Updates - Mid-January 2025 and December 2024

Microsoft Partner Updates December 2024 January 2025 Podcast

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What are the key updates for Microsoft partners?

Microsoft is prioritizing security enhancements for partners and customers. Key updates include:

Migrate to enhanced CSP billing reconciliation APIs by January 21, 2025: To ensure uninterrupted service, migrate to the new asynchronous APIs for billing reconciliation in Partner Center by January 21, 2025.

Microsoft blocks unused Azure subscriptions as of December 2024 and deletes them after 90 days. An unused subscription is defined as one with no activity or consumption for over 12 months. Account owners and service admins receive email notifications 30 days before the block.

The Microsoft 365 E5 Accelerate promotion offers a 15% discount on Microsoft 365 E5 for new-to-offer customers purchasing annual subscriptions. This worldwide promotion runs from January 1 to June 30, 2025, and applies to both monthly and annual billing options.

• Microsoft recommends disabling the Yearly Giving Full Azure Function before the end of the calendar year and running the Yearly Giving Calculation Accelerator. These steps ensure accurate yearly giving calculations and smooth data synchronization between Azure SQL database and Dataverse.
• Partners might see false positives on the NCE license-based price list preview for countries/regions unaffected by Forex trading (FX) rate changes. This is because the preview might show products with price changes due to FX rates even in regions where no such changes are happening.
• The Azure portal began enforcing mandatory MFA in October 2024. The Microsoft 365 admin center portal will enforce MFA starting February 3, 2025.
• The Microsoft 365 Copilot CSP Getting Started 15%-off promo is extended until April 1, 2025. This extension allows partners more time to leverage the promotion and offer exceptional value to customers during the significant Microsoft 365 renewal quarter.
• The ATO requires this data collection to comply with the Sharing Economy Reporting Regime (SERR). By gathering information on seller transactions, the ATO can ensure publishers declare accurate income and activity levels, contributing to tax compliance.
• The Analytics on Microsoft Azure and Data Warehouse Migration specializations will be consolidated into a unified specialization during the first half of 2025. This update aims to better meet customer expectations, streamline expertise validation, and enhance the partner experience by recognizing proficiency in both core analytics and migration.

Three key topics covered in the December (last month) updates include: Partner Center AI assistant (preview), Securing the channel, and Deprecation of graph.windows.net audience tokens.

What changes are happening to billing reconciliation APIs in the Partner Center?

Partners must migrate to the new asynchronous v2 APIs for billing reconciliation by January 21, 2025, to avoid service disruptions. These APIs offer faster download times and reduced latency, particularly for large data volumes. Legacy APIs will return error messages after this date. Instructions for migrating to the new APIs are available in the Partner Center documentation.

What are the upcoming price adjustments for Microsoft's commercial cloud services in Brazil and the UK?

Effective February 1, 2025, Microsoft will adjust prices for commercial cloud services in Brazilian Real (BRL) and British Pound (GBP) to align with global levels. Brazil's on-premises software pricing will also be adjusted.

Brazil (BRL): 12% increase for cloud and on-premises software.

UK (GBP): Cloud services will see a 5% to 6% decrease, while on-premises software will remain unchanged.

Individual SKU price changes may vary due to rounding rules and pricing calculations.

How can partners ensure accurate calculation of yearly giving totals in the Fundraising and Engagement system?

Microsoft recommends disabling the Yearly Giving Full Azure Function before the end of the calendar year and running the Yearly Giving Calculation Accelerator at the start of the new year. This process ensures accurate yearly giving totals for Contact and Account records in the Fundraising and Engagement system.

Detailed instructions:

• Yearly partner giving guidance
• Instructions to disable the Yearly Giving Full Azure Function
• Yearly Giving Calculation Accelerator

What is the new Microsoft 365 E5 Accelerate 15% promotion for CSPs?

From January 1 to June 30, 2025, CSP partners can offer a 15% discount on the net partner price of Microsoft 365 E5 annual subscriptions to new-to-offer customers. This promotion applies worldwide and includes both monthly and annual billing options for Microsoft 365 E5 and Microsoft 365 E5 (no Teams).

What security updates should partners be aware of?

Several security updates are being implemented to enhance the partner ecosystem, including:

Available Now:

• Microsoft Security Copilot: Available for Admin On Behalf Of (AOBO) in Partner Center.
• Removal of Unused Azure Subscriptions: Unused subscriptions are blocked and deleted after 90 days.
• Mandatory MFA for Azure portal: Enforced for all users.
• Security Requirements API: The beta version provides direct access to security compliance data.

Coming Soon:

• Mandatory MFA for M365 admin center: Enforced starting February 3, 2025.
• Deprecation of graph.windows.net audience tokens: Partners need to update their interaction with Partner Center APIs.

What changes are being made to the Microsoft AI Cloud Partner Program?

Key updates include:

Available Now:

• Security SMB Path: Thresholds are available, though they are not live yet.
• Partner Center AI assistant plugin for Microsoft Action Pack: Answers queries related to membership, renewals, and enrollment.
• Updates to AI Platform on Microsoft Azure and Build AI Apps with Microsoft Azure specializations: Changes are now live.
• AI assistant for prepurchase: Provides information on program details before purchase or renewal.

Coming Soon:

• New Analytics on Microsoft Azure specialization: A unified specialization integrating Analytics on Microsoft Azure and Data Warehouse Migration specializations will launch in the first half of 2025.
• SMB paths for Data & AI (Azure), Digital & App Innovation (Azure), and Infrastructure (Azure): Launching in February 2025.

What are the key highlights of the Microsoft 365 Copilot CSP Getting Started 15%-off promo extension?

The promotion is extended until April 1, 2025. It provides a 15% discount for CSP partners transacting Microsoft 365 and Dynamics 365 on Microsoft 365 Copilot. To highlight this opportunity, partners are encouraged to connect with customers with upcoming renewals.

What action is required for Apps & Games partners with company accounts in the European Union?

To comply with the European Union's Digital Services Act, Apps & Games partners with company accounts must provide business verification and customer support contact information by February 17, 2025. Failure to comply will result in removing their Apps & Games products from the European Union markets.

Details and Key Actions

Security Enhancements:

• Mandatory MFA Enforcement: Microsoft is rolling out mandatory multi-factor authentication (MFA) for enhanced security.
• Azure portal enforcement began in October 2024.
• M365 admin center enforcement starts February 3, 2025.
• Unused Azure Subscription Removal: To minimize security risks, Unused Azure subscriptions are blocked and deleted after 90 days.
• A subscription is deemed unused after 12 months of inactivity.
• Account owners and service admins are notified 30 days before blocking.
• Security Requirements API (Beta): The beta Security Requirements API gives partners direct access to security compliance data.
• Deprecation of graph.windows.net Audience Tokens: Partners need to adapt to upcoming changes in how they interact with Partner Center APIs, as these tokens have been deprecated for security reasons.
• Microsoft Security Copilot for AOBO: This feature, which enables Admin On Behalf Of (AOBO) functionality, is now available on the Service Management page in Partner Center.

Pricing Adjustments:

• Local Currency Adjustments: Prices for commercial cloud services in Brazilian Real (BRL) and British Pound (GBP) are being adjusted on February 1, 2025 to align with global levels.
• BRL increases by 12%, also affecting on-premises software.
• GBP decreases by 5% to 6% for cloud services.
• Price Visibility in Partner Center Checkout: Partners can now see Unit Price and Total Price, including discounts and promotions, before checkout for improved transparency.
• NCE License-Based Price List False Positives: Partners might see inaccurate price changes (false positives) on the NCE preview price list for regions without FX rate changes in January 2025.

Microsoft AI Cloud Partner Program Updates:

• New Analytics on Microsoft Azure Specialization: An integrated specialization combining Analytics on Microsoft Azure and Data Warehouse Migration is expected in the first half of 2025.
• AI and Machine Learning Specialization Renamed: This specialization is now "AI Platform on Azure" with expanded product eligibility and a higher performance requirement ($5,000 average Azure consumption revenue from at least 3 customers).
• Build and Modernize AI Apps Specialization Renamed: Now called "Build AI Apps on Azure" with increased product eligibility and a raised performance requirement ($5,000 average Azure consumption revenue from at least 3 customers across Application, Data, and AI platforms).
• Security SMB Path Available: The qualifications for the Small and Medium Business (SMB) path for the Solutions Partner designation in Security have been released.
• New Partner Center AI Assistant Plugins: Plugin for Microsoft Action Pack assists with membership status, renewals, and enrollment queries.
• Plugin for prepurchase scenarios answers partner questions about purchasing or renewing programs in the Membership workspace.
• New Benefits Announcement: On January 22, 2025, Microsoft is adding over 20 in-demand product licenses, including Microsoft 365 Copilot products, Microsoft Defender for Endpoint, and GitHub Enterprise, to partner benefits packages, Solutions Partner designations, and specializations.
• Legacy Benefits Transition: Sales of Microsoft Action Pack, Learning Action Pack, and legacy silver/gold benefits end on January 22, 2025. Partners are encouraged to transition to new benefits packages or Solutions Partner designations.

Cloud Solution Provider (CSP) Updates:

• Enhanced Billing Reconciliation APIs Migration: Partners using billing APIs in the Partner Center must migrate to the new asynchronous v2 APIs by January 21, 2025.
• Microsoft 365 E5 Accelerate Promotion: CSP partners can offer new-to-E5 customers a 15% discount on annual subscriptions (January 1 to June 30, 2025).
• Microsoft 365 Copilot Getting Started Promotion Extended: The 15% off promotion for CSP partners selling Microsoft 365 Copilot has been extended to April 1, 2025.
• Flexible Billing for Microsoft 365 Copilot: CSP partners can now offer a monthly billing option for annual subscriptions of Microsoft 365 Copilot, with a 5% price premium compared to an 'annual upfront' payment.
• December and January CSP Monthly Updates: Partners should review the December and January updates including the Partner Launch Calendar, and CSP Bimonthly Update newsletter, and register for the monthly CSP community Q&A calls.

Other Important Announcements:

• Fundraising and Engagement Yearly Giving Calculation: Microsoft recommends a year-end process for partners and customers using Fundraising and Engagement to ensure accurate yearly giving totals, including disabling the Yearly Giving Full Azure Function and running the Yearly Giving Calculation Accelerator.
• Australian Microsoft Store and Commercial Marketplace ATO Compliance: Publishers must update their information to comply with the Sharing Economy Reporting Regime (SERR) requirements.
• Expanded Marketplace Opportunities for ISVs in China: As of January 6, 2025, ISVs in China can publish and sell solutions globally through the Microsoft commercial marketplace, reaching millions of enterprise customers.
• EU Digital Services Act Compliance: Apps & Games partners with company accounts in the Partner Center must provide business verification and customer support information by February 17, 2025, to comply with the EU's Digital Services Act.