2026: From AI Hype to Real Outcomes

Dear Partners,

Wishing you a great year ahead.

2026 is shaping up to be the year AI truly moves from hype to impact—where the majority of people begin using AI in ways that genuinely make sense, and real-world use cases finally outpace speculation.

This shift is being accelerated by rapid advancements in agentic systems. Some estimates suggest the duration for which AI agents can operate independently—without human intervention—is doubling every four months. What is roughly 4.5 hours today could reach 8 hours by March or April 2026, and continue from there. The implications of this trend will be felt across industries, geographies, and societies.

The technology and software sector, in particular, is on the brink of profound transformation. To put this into perspective: software alone now represents nearly 19 petabytes of structured data, in the form of publicly available code across GitHub repositories—freely accessible for AI training and innovation. This scale of knowledge availability is unprecedented.

There is only one viable path forward: to embrace this moment and act on it deliberately.

Many of you are pioneers in your respective domains and trusted advisors to your customers. With that role comes responsibility—to help navigate an increasingly complex landscape, identify the right tools, build platforms tailored to specific niches, and set customers up for long-term success. At Hybr®, we take this responsibility seriously and see ourselves as partners in that journey.

The Era of Service as Software

We believe we are entering the era of Service as Software.

With Hybr®, our goal is to enable you and your business to deliver outcomes—not just tools. We help you amplify the domain expertise and niche knowledge you’ve already built, and significantly increase the speed and quality with which you serve your customers.

Because people no longer just buy software—they expect finished work.

What Changes in 2026

As we move through 2026, several shifts are becoming clear:

• Asking users to click through complex interfaces just to get things done will feel increasingly archaic.
• UIs and dashboards will become more disposable—created on demand for specific tasks—while foundational layers like security, auditability, and financial controls remain constant.
• Composability will be king. For example, using Hybr® MCP servers directly from ChatGPT or agentic workflows like n8n to order licenses will become a normal expectation.
• Deep, micro-niche services and products will outperform broad, general-purpose offerings, as generic tasks are increasingly handled by agentic AI tools.
• Individuals and business owners must focus on domain-specific problems that AI cannot easily replace—solving these will create the most durable opportunities.
• Secure, private use of organizational and personal data in AI workflows—along with meeting data sovereignty requirements—will see significant demand.
• Distribution channels will continue to matter, even as products and services converge. Leveraging partners to deliver end-to-end Service as Software through platforms like the Hybr® Reseller Commerce Platform and Hybr® Service Provider Framework will become a strong differentiator.
• Finally, not every detour is an opportunity. With AI, it’s tempting to build endlessly and expand into adjacent areas. Knowing when to stop—and where to focus—will matter more than ever.

Looking Ahead

No matter how we look at it, 2026 represents a unique moment in history—where millennia of human evolution, resilience, and innovation converge, pushing us toward the next phase of progress.

We wish you tremendous success, joy, and good health in 2026 and the years ahead.

Let’s make this moment work—for all of us.

— Ravi

Microsoft CSP Partner Program Updates- 2025 Recap and Early January

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Critical Deadlines and Actions

January 2026 Deadlines

• New Product Launches: The Microsoft Defender Experts suite and Microsoft Entra Internet Access for GCC both become transactable on January 1, 2026.
• API Mandatory Field: Starting January 5, 2026, the Marketplace Intent field is required for all co-sell referral submissions made via API and connectors.
• SQL Server 2022 End of Sale: Customers wishing to purchase new SQL Server 2022 subscriptions must do so by January 20, 2026, as the product reaches End of Sale on January 21.
• Annual Security Validation: Beginning in January 2026, partners must complete annual security requirement validations, which include enabling MFA for all administrative roles and providing a monitored security contact.

December 2025 Important Items to Review

Immediate Actions (December 2025)

• Tax Documentation: As of December 1, 2025, tax documents are available for download within the Partner Center Billing workspace for all applicable regions.
• Erroneous Offers: Partners must refrain from transacting three-year offers for Microsoft 365 E3, E5, and Office 365 E3, which were created in error; Microsoft intends to remove these from the January 2026 price list.
• SQL Server 2025: Early purchase for SQL Server 2025 opened on December 17, 2025, allowing partners to begin migrations ahead of the January price list.

Upcoming Pricing and Promotion Deadlines

• Currency Adjustments: Effective February 1, 2026, Microsoft will adjust commercial cloud prices for the Swiss Franc (CHF), Danish Krone (DKK), Euro (EUR), Norwegian Krone (NOK), and Swedish Krona (SEK) to align with global levels.
• Copilot Business Promotions: Limited-time offers for Microsoft 365 Copilot Business—including discounts up to 35% on bundles—are available only until March 31, 2026.
• Microsoft 365 Extensions: Current promotions for Microsoft 365 E3 and E5 suites have been extended through June 30, 2026.
• Global Price Update: A major global price update for commercial Microsoft 365 suites takes effect on July 1, 2026. Partners are encouraged to start renewal conversations three months in advance to lock in current pricing for their customers.

Technical and Programmatic Actions

• Referral Enhancements: Partners should prepare for Phase 1 of smarter referral submissions launching in January 2026, which introduces automated completeness checks for deal value, close dates, and customer needs.
• Specialization Updates: Partners enrolled in the Agentic DevOps (formerly Accelerate Developer Productivity) or AI Apps on Microsoft Azure specializations should visit Partner Center immediately to review revised performance and ACR requirements.
• Security Copilot Billing: Since Security Copilot is being integrated into Microsoft 365 E5, partners must confirm with customers to ensure standalone billing stops automatically to prevent duplicate charges.

Managing these deadlines is like navigating a complex flight path; while many systems are automated, staying on schedule with specific manual checkpoints—like security validations and price-lock renewals—is essential to avoid turbulence for your customers' accounts.

What are the key updates for Microsoft partners?

1. The Microsoft Defender Experts suite is an integrated, expert-led security offering launching on January 1, 2026. It bundles managed XDR, incident response, and access to engineering resources into a unified SKU for resellers and Scale Solution Providers (SSP) to expand their security portfolio.
2. SQL Server 2025 became available for purchase by CSP partners on December 17, 2025, ahead of the January 2026 price list, with no price change from the 2022 version. SQL Server 2022 will reach its End of Sale date on January 21, 2026, and customers must purchase new subscriptions for it before that date.
3. Effective February 1, 2026, prices will be adjusted for the Swiss Franc (CHF), Danish Krone (DKK), Euro (EUR), Norwegian Krone (NOK), and Swedish Krona (SEK). The purpose is to align prices more closely with global levels, ensuring consistent regional pricing for customers across different geographies.
4. The smarter referral submission process includes automated completeness checks, smart prompts to validate BANT and articulate customer need, suggestions for Campaign IDs, and an enhanced experience for suggesting product names. Key features include validation of the estimated deal value and close date.
5. The Microsoft 365 Copilot Business SKU is priced at $21.00 USD per user/month for up to 300 users. It requires a prerequisite license of Microsoft 365 Business Basic, Standard, or Premium.
6. Indirect resellers must provide and maintain a monitored security contact in Partner Center, enable multifactor authentication (MFA) for all users with administrative roles, and regularly review and limit privileged roles while removing inactive accounts.
7. The "Accelerate Developer Productivity with Microsoft Azure" specialization was renamed to "Agentic DevOps with Microsoft Azure and GitHub." The "Build AI Apps with Microsoft Azure Specialization" was renamed to "AI Apps on Microsoft Azure Specialization." These changes were made to better align the specializations with their respective business areas.
8. Three-year offers for Microsoft 365 E3 (Product ID: CFQ7TTC0LFLX), Microsoft 365 E5 (Product ID: CFQ7TTC0LFLZ), and Office 365 E3 (Product ID: CFQ7TTC0LF8R) were created in error and will be removed.
9. The "Marketplace Intent" field will be mandatory for all IP co-sell referral submissions via API. The accepted values for this field are "Yes," "No," and "Have not decided."
10. The Security Immersion Briefing program now has no execution cap, allowing partners to run unlimited briefings with up to 20 open at a time. Eligibility has been expanded to allow distributors or resellers to deliver and claim for the activity, and a new briefing has been introduced focusing on Business Premium customers (50-300 licenses).

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Details and Key Actions

I. Strategic Product Launches and AI Integration

A series of major product launches and integrations signal a deep commitment to embedding AI and expert-led services into the Microsoft ecosystem, with a significant focus on security and productivity.

Microsoft Defender Experts Suite

• General Availability: January 1, 2026
• Description: An integrated, expert-led security offering designed to help organizations defend against threats, build cyber resilience, and modernize security operations.
• Partner Opportunity: Resellers and Scale Solution Providers (SSPs) can leverage a unified "per user, per month" SKU that bundles managed XDR, proactive and reactive incident response, and access to dedicated engineering resources. This allows partners to expand their security portfolios with direct access to Microsoft's advanced capabilities.
• Promotions: A limited-time promotional offer will be available for the full calendar year, from January 1 to December 31, 2026.

Microsoft 365 Copilot for Business

• Availability: As of December 1, 2025
• Target Audience: Small and Medium Business (SMB) customers.
• Product Details: This offering provides the same AI-powered productivity features as the enterprise Copilot SKU but at a more accessible price point for SMBs.
  • Price: 21.00 USD per user/month.
  • Capacity: Up to 300 users.
  • Prerequisites: Requires a Microsoft 365 Business Basic, Standard, or Premium license.
• Convenience Bundles: To simplify renewals and drive adoption, three streamlined bundles are offered:
  • Business Basic + Copilot Business
  • Business Standard + Copilot Business: 30.50 USD per user/month
  • Business Premium + Copilot Business: 43.00 USD per user/month
• Promotional Offers (Dec 1, 2025 - Mar 31, 2026):
  • Standalone Copilot Business: 15% discount (1-300 licenses)
  • Business Standard + Copilot Business Bundle: 35% discount (10-300 licenses)
  • Business Premium + Copilot Business Bundle: 25% discount (10-300 licenses)
  • Microsoft Purview suite add-on for Business Premium: 50% discount

Security Copilot Integration with Microsoft 365 E5

• Availability: Rollout began November 18, 2025, for existing Security Copilot customers with E5 and will expand to all E5 customers in subsequent months.
• Details: Microsoft Security Copilot is being made available to all Microsoft 365 E5 customers. This includes 12 new Microsoft-built agents across Microsoft Defender, Microsoft Entra, Intune, and Purview to enable smarter security workflows.
• Partner Impact: This integration adds significant value to the M365 E5 suite. For partners managing customer security or using Security Copilot internally, this benefit is provided at no extra cost. Partners must confirm with customers to prevent duplicated charges, as billing for standalone Security Copilot will stop automatically once included in a tenant.

SQL Server 2025

• Early CSP Availability: Available for Cloud Solution Provider (CSP) partners to purchase starting December 17, 2025, ahead of its appearance on the January 2026 price list.
• Key Features: Designed to accelerate AI application development.
• Transition Details:
• Pricing: Pricing for SQL Server 2025 remains the same as SQL Server 2022.
• End of Sale for SQL Server 2022: January 21, 2026. Customers can purchase new subscriptions for the 2022 version until January 20, 2026.

II. Partner Operations and Platform Enhancements

Microsoft is implementing significant updates to Partner Center and partner requirements to improve efficiency, data quality, and security posture.

Modernization of the Co-Sell Referral Process

A phased rollout of enhancements to the referral submission process in Partner Center is designed to accelerate opportunity creation and improve data quality through automation and intelligent guidance.

• Launch: January 2026
• Phase 1 Features (Partner Center UI):
  • Automated Completeness Checks: Inbound co-sell referrals will undergo automated validation to ensure only high-quality submissions progress.
  • Smart Prompts: Intelligent prompts will help partners validate BANT (Budget, Authority, Need, Timeline) and articulate customer needs more clearly, with AI-driven assistance available.
  • Data Validation: The system will enforce new rules:
    • Estimated deal value: Must be realistic; placeholder values will trigger a warning.
    • Estimated close date: Must be a future date; past dates or dates within seven days are invalid.
    • Customer contact information: Valid details must be provided, or a consent checkbox selected to share information later.
• Mandatory Field for API Submissions:
• Effective Date: January 5, 2026
• Requirement: The "Marketplace Intent" field will become a required component for all IP co-sell referral submissions made via API and connectors.
• Accepted Values: "Yes," "No," "Have not decided."

Security Posture Requirements for CSP Authorization

• Validation Period: Annual validation of security requirements begins in January 2026.
• Impacted Audience: Indirect Resellers.
• Key Actions Required: Partners must take steps to reduce risk and maintain their CSP authorization.
  • Provide a monitored security contact in Partner Center and keep it current.
  • Enable multifactor authentication (MFA) for all in-scope users with administrative roles.
  • Review and limit privileged roles regularly and remove inactive accounts.
• Tools: Partners can track progress in the Security workspace within Partner Center, which provides dashboards, alerts, and statistics.

Operational and Administrative Updates

• Tax Documents: As of December 1, 2025, tax documents are available for download from the Partner Center Billing workspace for all applicable countries/regions.
• Erroneous Offers Removed: Three-year offers for Microsoft 365 E3, Microsoft 365 E5, and Office 365 E3, which were created in error, are being removed. Microsoft is taking steps to mark these as "End of Sale" for the January 2026 price list. Partners are advised to refrain from transacting these offers.

III. Commercial Strategy: Pricing, Promotions, and Packaging

Microsoft is executing a multi-faceted commercial strategy involving targeted promotions, future price increases, and global currency realignments.

Microsoft 365 Promotions and Future Price Adjustments

• Extended Promotions (through June 30, 2026): To strengthen renewal and upsell efforts, CSP partners can use the following offers for new Microsoft 365 customers:    
  • 10% discount on Microsoft 365 E3, Security add-on suites (Purview and Defender), and Microsoft 365 E5 three-year subscriptions.
  • 15% discount on Microsoft 365 E5 annual term subscriptions.
• Future Price Increase (July 1, 2026): 
  • Microsoft will implement a global price update for commercial Microsoft 365 suites. The increase will coincide with the expanded availability of security and management capabilities within the suites. 
  • This change will apply to new and renewing customers starting July 1, 2026. This creates a significant opportunity for partners to accelerate renewals and upsells before the price change takes effect.

Microsoft Sentinel Prepurchase Plan

• Description: A plan allowing partners to purchase Microsoft Sentinel precommit units (CUs) at a discounted rate, offering customers more predictable pricing.
• Savings: 
  • Save 44% by purchasing a 5k CU plan.
  • Unlock up to 73% in total savings when combined with commitment tiers (exact discount varies by region and tier).

Global Price Adjustments for Commercial Cloud Services

• Effective Date: February 1, 2026
• Reason: To more closely align local currency pricing with global levels. This adjustment does not affect on-premises software pricing.
• Impacted Currencies and Adjustments:

IV. Programmatic and Enablement Updates

Updates to the partner program include changes to specializations to reflect evolving business needs and an expansion of enablement activities to help partners drive customer engagement.

Microsoft AI Cloud Partner Program Specialization Changes

Monthly updates are enhancing partner differentiation, particularly in high-demand AI solution areas.

• "Accelerate Developer Productivity with Microsoft Azure" Specialization:    
  • New Name: Agentic DevOps with Microsoft Azure and GitHub.   
  • Requirement Changes:
    • The Azure Consumed Revenue (ACR) requirement must now be met from a specific set of sub-strategic pillars: Azure DevOps, GitHub Copilot, GitHub Platform, and/or Microsoft Dev Box.
    • The Microsoft Sales Experience (MSX) engagement requirement has been removed.
• "Build AI Apps with Microsoft Azure" Specialization:
  • New Name: AI Apps on Microsoft Azure.    
  • Requirement Changes: The ACR requirement must now be met from an updated set of strategic pillars across three categories: Microsoft Foundry, Azure Application Platform services, and Azure Data Platform.

Expansion of Security Immersion Briefings

• New Focus: A new 90-minute interactive briefing is available, focused on Microsoft Defender for Business Premium and Microsoft Purview for Business Premium for customers with 50-300 licenses.
• Key Changes:
  • Unlimited Scale: Execution caps have been removed. Partners can now run unlimited briefings, with up to 20 open submissions at a time.
  • Expanded Eligibility: New delivery options allow distributors and resellers to collaborate or deliver directly, increasing flexibility.

Government Cloud Product Availability

• Microsoft Entra Internet Access for GCC: Availability has been delayed. The product is not transactable from the December price list and will become transactable on January 1, 2026.
• Note: This delay does not affect Microsoft Entra Private Access for GCC, which is currently available.

2025 Year-End Round-up

Quarter 1: Security and Infrastructure Foundations

• January: Focus began with the transition from Power BI Premium to Microsoft Fabric and the general availability of Copilot in Microsoft 365 admin centers.
• February: Microsoft announced that System Center 2025 would be available for CSP partners starting April 1.
• March: Significant updates were made to the Cloud Solution Provider (CSP) Program Guide, and new add-on options were introduced for Microsoft E5 Security and Compliance suites.

Quarter 2: Copilot Expansion and Global Compliance

• April: Promos for Microsoft 365 Copilot were extended, and the license cap was expanded to 2,400.
• May: Major shifts occurred due to a proposed settlement with the European Commission, impacting how Microsoft 365 and Teams were packaged. Additionally, three-year subscription terms for M365 E3 and E5 were announced for CSPs.
• June: Partners saw the launch of FY26 promo extensions and the announcement that multifactor authentication (MFA) would become mandatory for Partner Center.

Quarter 3: Security Enforcement and AI Tools

• July & August: This period focused on local currency price adjustments and the enforcement of MFA requirements to secure the partner ecosystem. The Windows 10 Extended Security Updates (ESU) program was also introduced for CSPs.
• September: Microsoft introduced Partner Center AI assistant (preview) in the Pricing and Billing workspaces to help partners manage operations. New SMB-security SKUs were launched to provide XDR and data protection for Business Premium customers.

Quarter 4: Major Product Launches and 2026 Readiness

• October: Mandatory MFA went live, and global changes to Microsoft 365 and Teams pricing took effect. Microsoft also began renaming its E5 mini-suites.
• November: The Launch Enablement guide was introduced alongside new Copilot resources specifically for SMB partners.
• December: The year concluded with the early availability of SQL Server 2025 for CSP partners and the introduction of the Microsoft Sentinel prepurchase plan. Looking ahead, Microsoft announced that the Microsoft Defender Experts Suite would launch on January 1, 2026.

What to Look for in the New Year 2026

The first half of 2026 is defined by several mandatory compliance dates, product transitions, and global pricing shifts.

January 2026: Launches and Mandatory Compliance⚠️

• January 1: The Microsoft Defender Experts suite launches with a limited-time promotional offer through the end of the year. Microsoft Entra Internet Access for GCC also becomes transactable on this date.
• January 5: For partners using API integrations, the Marketplace Intent field becomes a mandatory requirement for all co-sell referral submissions.
• January 21: SQL Server 2022 reaches End of Sale, meaning any new subscriptions for this version must be finalized by January 20.
• Annual Security Validation: Beginning in January, partners must complete annual security requirement validations, which include enabling MFA for all administrative roles and providing a monitored security contact.
• Smarter Referrals: Phase 1 of the enhanced referral submission experience launches, introducing automated completeness checks for deal values, close dates, and customer needs.

February – July 2026: Pricing and Promotional Deadlines

• February 1: Local currency price adjustments take effect for Commercial Cloud services in the Swiss Franc (CHF), Danish Krone (DKK), Euro (EUR), Norwegian Krone (NOK), and Swedish Krona (SEK) to align with global levels.
• March 31: This is the deadline for limited-time promotions on Microsoft 365 Copilot Business bundles, which offer discounts ranging from 15% to 35%.
• June 30: Extended promotions for Microsoft 365 E3 and E5 suites (10% and 15% discounts) are scheduled to expire.
• July 1: A significant global price update for commercial Microsoft 365 suites takes effect across all channels.

To navigate these changes effectively, partners are encouraged to start renewal conversations at least three months in advance (by April 2026) to lock in current pricing for customers before the July global update.

Preparing for 2026 is like securing a vessel before a scheduled tide change; while the shift in pricing and product versions is inevitable, those who lock in their renewals and complete their security validations early will remain on steady ground while others may face the rising costs of the new year.

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