Microsoft CSP Partner Program Updates - March & April 2026- Combined Edition
Critical Deadlines and Actions
- April 1, 2026 [LIVE NOW] - MFA Enforcement for Partner Center App+User APIs: All API calls without a valid MFA claim are now blocked with a 401 response (error code 900421). If your billing integrations, CRM connectors, or automation tools use app+user authentication, update them immediately to pass a valid MFA token. Testing has been available since September 2025.
- April 1, 2026 [LIVE NOW] - Free Grace Period for Non-Renewed Subscriptions Discontinued: Customers on expired, non-renewed subscriptions no longer receive free continued access. They must either renew, cancel, or enter a paid Extended Service Term (EST) at the standard monthly rate plus a 3% uplift. Review all customer subscriptions with auto-renew turned off now.
- April 15, 2026 [ACT SOON] - ReferenceId JSON Format Change in Reconciliation Files: The ReferenceId attribute in both billed and unbilled reconciliation files changes to a structured JSON format on April 15. Partners who parse ReferenceId as a plain string must update their logic to handle the new JSON structure before this date.
- April 30, 2026 [EXPIRING] - Windows 365 New Customer Promotion Ends: The 20% discount for new Windows 365 customers expires on April 30, 2026. Close pending deals or pipeline opportunities before this deadline to lock in the promotional pricing.
- May 1, 2026 [UPCOMING] - Microsoft 365 E7 and Agent 365 General Availability: The new Frontier Suite (M365 E5 + Copilot + Entra Suite + Agent 365) becomes generally available. Prepare upsell motions, customer pitch materials, and pricing conversations for existing E5 customers now.
- May 4, 2026 [UPCOMING] - Extended Service Terms (EST) Full Enforcement Begins: Subscriptions meeting all three conditions — purchased on or after April 1, 2025; expiring on or after April 1, 2026; and auto-renew set to off — will automatically be moved into EST at expiration. Use the new EST download feature in Partner Center to audit your customer base.
- July 1, 2026 [PLAN NOW] - Microsoft 365 Global Price Increase Takes Effect: Price increases apply to new and renewing Microsoft 365 customers across all commercial plans globally. Begin proactive renewal conversations and lock customers into current pricing before July 1 to protect revenue and reduce churn risk.
What are the key updates for Microsoft partners?
March 2026 — Key Announcements (Catch-Up)
1. Microsoft 365 E7 — The Frontier Suite Announced
Microsoft announced the new Microsoft 365 E7, a premium productivity suite designed for the agentic era. It bundles Microsoft 365 E5, Microsoft 365 Copilot, the Microsoft Entra Suite, and the new Agent 365 — all grounded in Work IQ shared intelligence. The suite becomes generally available on May 1, 2026, and is positioned as the definitive offer for customers looking to move from AI pilots to enterprise-wide agentic deployment.
For partners, M365 E7 and Agent 365 are added as eligible workloads in CSP incentives. From April 1, 2026, the Copilot + Power Accelerate programme includes Agent 365 across Immersion Briefings, Envisioning sessions, Proof of Concept engagements, and Deployment Accelerators — giving partners a structured commercial path to drive E5-to-E7 upsells.
2. Support Services Designation Now Automated in Partner Center
Effective March 31, 2026, the automated self-nomination and enrollment process for the Support Services designation is live in Partner Center. Distributors and Direct Bill CSPs holding any Solution Partner designation can now self-nominate, track progress, and manage renewals through a single Partner Center dashboard — replacing the manual process previously required.
3. Qualified Referral Program (QRP) Retired
The QRP was retired at the end of March 2026. All lead and referral sharing is now consolidated into the standard Partner Center co-sell experience. This change reduces duplicate workflows, improves pipeline transparency, and accelerates response times. Microsoft has enhanced partner matching with real-time data and AI-driven logic to route leads to the right partners based on capabilities and competencies.
4. Security Dashboard for AI — Now in Public Preview
The Security Dashboard for AI entered public preview in March 2026, available to current Microsoft Security customers at no additional licensing cost. It gives CISOs and AI risk leaders a unified, real-time view of AI threats across agents, apps, and platforms by connecting signals from Microsoft Defender, Microsoft Entra, and Microsoft Purview. Partners can use this as an entry point to AI governance conversations without requiring customers to purchase new security products.
5. Microsoft Sentinel 50GB Promotion Extended to June 30, 2026
The promotional pricing for the Microsoft Sentinel 50GB commitment tier has been extended through June 30, 2026. Customers who purchase during this window lock in pricing through March 31, 2027, and can receive up to 32% off pay-as-you-go pricing (region-dependent). This is particularly relevant for SMB and mid-market customers where cost predictability is a key decision factor.
6. Power Apps Per App SKU — Temporary CSP Absence Resolved
Due to an operational issue, the Power Apps per app SKU was absent from CSP price lists throughout March 2026. Microsoft confirmed this was unintended and is resolving the issue, with the SKU returning to the CSP channel price list in the first week of April 2026. Partners can continue to manage renewals and existing subscriptions normally; no customer entitlements were impacted.
7. Specialisation Metric Improvements
As of February 13, 2026, specialisation percentage growth calculations round to the nearest percent, which positively impacts partners pursuing specialisations such as Low Code Application Development, Intelligent Automation, Business Intelligence, and Teamwork Deployment. Additionally, from February 27, the Business Applications Solutions Partner designation now shows detailed score calculations and baseline threshold status in Partner Center.
April 2026 — New Announcements
1. MFA Enforcement for APIs — Now Live
MFA is now enforced for all Partner Center app+user APIs. This follows the MFA rollout to the Partner Center portal in August 2025 and extends those protections to API access. Any API call without a valid MFA claim receives a 401 response code and a 900421 error code. All APIs have been MFA-enabled since September 2025 for testing purposes.
2. Copilot + Power Accelerate Expanded with Agent 365
From April 1, 2026, Agent 365 is included as an eligible workload within the Copilot + Power Accelerate incentive programme. This covers Immersion Briefings, Envisioning and Proof of Concept engagements, and Deployment Accelerators. Microsoft 365 E7 and Agent 365 are also included as eligible workloads for the core strategic product accelerator and growth levers within CSP incentives.
3. Power Apps Per App SKU Returns to CSP Price List
Following the March absence, the Power Apps per app SKU is available again on CSP price lists from the first week of April 2026. Partners can resume new purchases, renewals, and full licence management through standard CSP processes.
4. ReferenceId JSON Format Change — Deadline April 15
Effective April 15, 2026, the ReferenceId attribute in both Billed Reconciliation and Unbilled Reconciliation files changes to a structured JSON format. This update standardises the field to include both an identifier and version information, improving consistency when correlating reconciliation records across billing systems. Partners who parse or process ReferenceId as a plain string must update their logic before the deadline.
5. Sri Lanka VAT — 18% on Digital Services Effective April 1
Under Sri Lanka's VAT Act (Amendment) No.4 of 2025, all digital services invoiced from non-resident companies to Sri Lankan customers are subject to 18% VAT effective April 1, 2026. Partners and customers in Sri Lanka who have not already submitted a valid VAT ID to Microsoft should do so via Partner Center's billing profile section. Invoices without a VAT ID will still include VAT, but customers will be unable to claim input tax credits.
6. Microsoft Teams Shared Space — Pricing Update
Effective April 1, 2026, all Microsoft Teams Shared Space – Single Space products (formerly Teams Shared Devices, a subset of SKUs) are priced at $0, while all Microsoft Teams Shared Space licences are priced at $8. This is a pricing clarification following a SKU naming update announced in February 2026. No changes to product functionality or customer entitlements are involved.
My MFA enforcement date has passed — what happens if I haven't updated my API integrations?
Effective April 1, 2026, any app+user API call to Partner Center without a valid MFA claim is blocked and returns a 401 response with error code 900421. This means automated billing reconciliation, provisioning, and CRM sync processes that rely on these APIs will fail silently or throw errors. You need to update your integrations to include a valid MFA token immediately. All Partner Center APIs have been MFA-enabled for testing since September 2025, so the infrastructure is ready — the remaining work is on your end.
What exactly is the Extended Service Term (EST), and what will my customers be charged?
An Extended Service Term is a flexible, month-to-month continuation option that activates when a subscription expires without being renewed or cancelled. Under EST, customers continue to have access to their services and are billed at the standard monthly rate with a 3% uplift applied. Starting May 4, 2026, subscriptions that were purchased on or after April 1, 2025, expire on or after April 1, 2026, and have auto-renew turned off will automatically enter EST at expiration unless the partner proactively renews or cancels them first.
What is Microsoft 365 E7, and how does it differ from M365 E5?
Microsoft 365 E7 is Microsoft's new 'Frontier Suite,' designed for organisations deploying AI at scale. It builds on M365 E5 by adding Microsoft 365 Copilot, the Microsoft Entra Suite (identity and access management), and Agent 365 (Microsoft's agentic AI platform), all grounded in Work IQ shared intelligence. In practical terms, E7 gives customers full Copilot productivity, advanced identity governance, and the ability to deploy and orchestrate AI agents across their organisation — all in a single, integrated licence. It becomes generally available on May 1, 2026.
The Qualified Referral Program (QRP) has been retired — how do referrals work now?
Following QRP's retirement at the end of March 2026, all lead and referral sharing is now managed through Partner Center's standard co-sell referrals workflow. Partners use the Referrals workspace in Partner Center to accept, track, and close referrals with Microsoft sellers. The unified experience reduces the duplicate workflows that existed under QRP and improves pipeline transparency for both partners and Microsoft sellers. Microsoft has also enhanced the partner matching logic with real-time data and AI to ensure the right leads reach the right partners.
What is the ReferenceId JSON format change, and who does it affect?
Effective April 15, 2026, the ReferenceId attribute in both Billed Reconciliation and Unbilled Reconciliation files changes from a plain string to a structured JSON object that includes both an identifier and a version field. This affects CSP direct bill partners and distributors who process reconciliation files programmatically — particularly those with custom billing systems, BI pipelines, or automated reporting tools that parse the ReferenceId field. Partners who treat ReferenceId as a simple string will receive malformed data if they do not update their parsing logic before April 15.
Does the Sri Lanka VAT change affect me as a partner outside Sri Lanka?
No — this change only affects partners and customers based in Sri Lanka purchasing digital services from Microsoft's non-resident entities. Under Sri Lanka's VAT Act (Amendment) No.4 of 2025, an 18% VAT must be applied to all such invoices from April 1, 2026. If you operate in Sri Lanka or manage Sri Lankan customer tenants, you must ensure your valid Sri Lanka VAT ID is registered in your Partner Center billing profile. Without a valid VAT ID, invoices will still include VAT, but customers will not be able to claim input tax credits.
What promotions are currently active that I should be prioritising in customer conversations?
As of April 2026, the following promotions are active and worth prioritising:
- Microsoft Sentinel 50GB commitment tier at up to 32% off PAYG pricing, available through June 30, 2026, with customer price lock-in through March 31, 2027.
- Microsoft 365 E5 at 15% off for new customers, extended through June 30, 2026.
- Windows 365 at 20% off for new customers — this one expires April 30, 2026, so it requires immediate action.
- Microsoft 365 Copilot at 30% off for eligible customers purchasing 300 or more annual licences with 80% information worker coverage — available through the current promotional window.
What should I be telling customers about the July 2026 Microsoft 365 price increase?
You should be having renewal conversations with customers now, before July 1, 2026. Customers who renew before that date lock in their current pricing. The increase affects new and renewing Microsoft 365 commercial customers globally across Business, Enterprise, and Frontline plans. Microsoft has expanded security and AI management capabilities across the M365 suites to justify the increase, so position renewals alongside a discussion of the new value being delivered — features like expanded Copilot Chat integration, enhanced Defender for Office security, and additional endpoint management capabilities. Use Microsoft CloudAscent to identify accounts with near-term renewal dates and prioritise outreach accordingly.
Details and Key Actions
MFA for Partner Center APIs
Who is affected: All CSP direct bill partners and distributors using app+user API flows for billing, reconciliation, automation, or CRM integrations.
What changed: MFA enforcement began April 1, 2026. All app+user API requests without a valid MFA claim are blocked. Error code 900421 is returned with a 401 response.
Key actions:
- Identify all systems making app+user API calls to Partner Center — billing automation, reconciliation processing, provisioning tools.
- Update each system to include a valid MFA token in the Authorization header of every API request.
- Test your updated integrations in the Partner Center sandbox environment before rolling out to production.
- Review Microsoft's MFA requirements guide at learn.microsoft.com to confirm supported authentication flows.
Extended Service Terms (EST)
EST enforcement date: May 4, 2026 (pushed from April 1 due to earlier delays).
Auto-EST criteria: A subscription is automatically moved to EST if it was purchased on or after April 1, 2025; expires on or after April 1, 2026; and has auto-renew set to off.
Key actions:
- Use the EST download feature in Partner Center (available since February 27, 2026) to export a full list of subscriptions set to EST.
- Review each EST-eligible subscription and decide whether to switch it to renew-to-term or cancel before enforcement begins.
- Proactively contact customers whose subscriptions meet the auto-EST criteria and discuss their renewal preferences.
- Be aware that EST billing is at the standard monthly rate with a 3% uplift — communicate this clearly to customers to avoid unexpected charges.
- Note that specialized offer EST availability was updated to March 13, 2026, ahead of the May 4 enforcement date.
Microsoft 365 E7 — Upsell Preparation
Key actions:
- Identify all existing M365 E5 customers in your portfolio — these are your primary E7 upsell targets.
- Download the partner launch kit from the Microsoft partner blog (partner.microsoft.com/blog/article/agent-365-announcement) including the partner FAQ, sales guidance deck, and customer pitch materials.
- Register for the Digital Partner Airlift for CSP partners (March 31, 2026 on-demand) to learn about the Agentic System of Work.
- Prepare demo environments for Microsoft 365 E7 ahead of the May 1, 2026 GA date so your sales team is ready on day one.
- Add M365 E7 and Agent 365 to your CSP incentive workload planning — both are now eligible under the core strategic product accelerator.
Microsoft 365 Price Increase — July 1, 2026
Key actions:
- Run a renewal report immediately — use Microsoft CloudAscent to identify customers with renewals coming up before July 1, 2026.
- Prioritise outreach to high-value accounts and multi-seat customers to lock in current pricing before the increase.
- Download the partner launch kit from the CSP partner page for renewal and upsell conversation guides and customer-facing materials.
- For customers not yet ready to upgrade to E3, E5, or Copilot Business, at minimum secure a renewal before July 1 to avoid having them exposed to the new pricing at their next renewal.
Sentinel 50GB Promotion — Act Before June 30, 2026
Key actions:
- Use Microsoft CloudAscent to identify customers using Azure Sentinel on a pay-as-you-go model who could benefit from a commitment tier.
- Present the 50GB commitment tier as a cost-saving and budget-predictability option — up to 32% off PAYG pricing, with lock-in through March 31, 2027.
- The extension to June 30, 2026 gives partners a full quarter to close security modernisation conversations — build this into Q2 2026 pipeline planning.
Recommendations
Based on the March and April 2026 announcements, here are the actions we recommend prioritising across your business and customer base this month.
Immediate — Act This Week
Fix Your API Authentication
If any of your systems use app+user authentication to access Partner Center APIs — billing reconciliation, subscription management, automated provisioning — verify they are sending a valid MFA token with every request. This is not a future deadline; enforcement is live as of April 1. The cost of inaction is broken integrations and failed billing processes.
Audit EST-Eligible Subscriptions
Download the EST subscription report from Partner Center and review every subscription with auto-renew turned off. Contact affected customers before May 4 and either secure a renewal or confirm a cancellation. Do not leave subscriptions to auto-enter EST without a customer conversation — the 3% uplift on the standard monthly rate will generate unexpected charges and potential disputes.
Activate the Windows 365 Promotion Before April 30
The 20% discount for new Windows 365 customers expires on April 30. If you have any pipeline conversations that have stalled, use this deadline as a commercial lever to close deals within the month. This is particularly effective for customers currently on Windows 10 or moving workloads to cloud-managed desktops.
Short-Term — Act This Month
Prepare for M365 E7 Launch on May 1
The window between now and May 1 is your preparation time. Identify your top E5 customers, brief your sales team on the E7 value proposition, and download the partner launch kit from the Microsoft partner blog. If you are enrolled in Copilot + Power Accelerate, plan your first Agent 365 Immersion Briefings now so you are ready to execute from day one of GA.
Update Reconciliation File Processing Before April 15
If your billing or reporting systems parse the ReferenceId field from reconciliation files, this is a technical change that requires developer attention. Reach out to your technical team now — the deadline is April 15, and the change could silently break reports or downstream billing logic if not handled in advance.
Close Sentinel Security Conversations
Use the Sentinel 50GB promotion extension as an opportunity to re-engage customers who showed interest in Sentinel but stalled on pricing. The promotion now runs through June 30, 2026, with price lock-in through March 31, 2027. Frame the conversation around predictable security costs and the ability to plan annual security budgets — this resonates particularly well with CFO-level conversations in the SMB and mid-market space.
Strategic — Plan This Quarter
Begin M365 Renewal Conversations Now
The July 1, 2026 price increase is a significant event, and partners who act early will be best positioned. Run a renewal report immediately using CloudAscent, prioritise accounts renewing in Q2 and Q3 2026, and start conversations that lock in current pricing. Frame this as a value conversation, not just a renewal — use the new M365 capabilities (Security Copilot, Defender enhancements, Copilot Chat) to justify the subscription and upsell to higher-tier plans where appropriate.
Build Your AI Security Practice Using the New Tools
The Security Dashboard for AI (now in public preview at no extra cost) and the ASPX targeting platform together give partners a concrete way to lead AI governance conversations with customers. These tools require no new licensing to demonstrate value, making them ideal for building pipeline in accounts where AI adoption is still in early stages. Register for the ASPX Partner Showcase community call on April 28, 2026, to hear how other partners are putting these tools into practice.
Certify for the Support Services Designation
With the automated enrollment now live in Partner Center as of March 31, 2026, there is no longer a reason to delay if you are a Distributor or Direct Bill CSP holding a Solution Partner designation and offering support services. The designation provides differentiation in customer conversations and opens doors to customers seeking partners with validated support capabilities. Self-nominate in Partner Center today and use the dashboard to track your progress.
CSP Billing Ultimate 2026
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