Microsoft CSP Partner Program Updates October & Early November 2025

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Critical Deadlines and Actions

• October 15, 2025 (Deadline): 
  • Action Required: Partners must sign in to Partner Center and ensure that all required fields in their tax and bank profiles are complete and accurate.
  • Impact: Failure to update this data will lead to account restrictions, including the inability to receive payments, due to inaccurate, incomplete, or outdated data
• October 25, 2025:
  • Action Required: Partners can download customer eligibility lists through Cloud Ascent for the new Targeted Microsoft 365 E3 Annual CSP Promotion
• November 1, 2025 (Effective Date):
  • Key Change: Global changes to Microsoft 365 and Teams licensing, discounting, and sales practices become effective, based on commitments made to the European Commission.
  • Impact/Action: The Microsoft 365 and Office 365 Enterprise suites with Teams are reintroduced globally, prices for "no Teams" suites are updated, and the price of Teams Enterprise standalone is increased. Partners must review the November 1 CSP price list and utilize the updated FAQ and partner guidance deck.
• November 3, 2025 (End of Day):
  • Key Change: Extended Service Terms (ESTs) SKUs become available for testing in the Cloud Solution Provider (CSP) sandbox environment.
  • Action Required: CSP distributors and direct bill partners should start getting prepared for extended service terms by reviewing the technical details and coordinating with technical teams to schedule necessary updates.
• Early November 2025:
  • Key Change: The rollout of the Security workspace is expected to be complete, giving all indirect resellers access
• December 1, 2025 (Enforcement Date):
  • Key Change: Partner of Record (POR) API enforcement begins (extended from September). POR validation will be required for new subscription orders and changes to existing subscriptions (e.g., license count adjustments, billing plan changes, and legacy-to-new commerce migrations).
  • Action Required (Distributors): Must use the new POR validation API as the primary compliance check and familiarize themselves with error codes.
  • Action Required (Indirect Resellers): Must verify their Partner Location Account (PLA) ID in Partner Center, ensure it is linked to an active CSP indirect reseller tenant, and confirm regional alignment.
• December 31, 2025 (End Date):
  • Key Change: Promotions end for both the Targeted Microsoft 365 E3 Annual CSP Promotion (20% off) and the extended Microsoft 365 E5 15% Off Accelerate Annual Promotion.
  • Action Required: Drive sales of M365 E3 and M365 E5 before these promotional offers expire.
• March 31, 2026 (End Date):
  • Key Change: End date for the promotional pricing public preview for the new Microsoft Sentinel 50GB commitment tier. 
  • Impact: Customers who purchase this commitment tier during the preview window lock in the pricing until March 31, 2027.
• April 1, 2026 (Enforcement Date):
  • Key Change 1 (Security): Mandatory Multifactor Authentication (MFA) for Partner Center API access is fully enforced; any API calls made without MFA will be blocked.
  • Action Required (Security): Partners must plan and allocate resources to update their systems to integrate MFA into their API calls. 
  • Key Change 2 (EST/Billing): The free grace period for accessing services on non-renewed subscriptions will be discontinued.
  • Key Change 3 (EST/Billing): Subscriptions meeting specific criteria (purchased on/after April 1, 2025; expires on/after April 1, 2026; auto-renew set to off) will automatically be moved into Extended Service Term (EST) upon expiration.
  • Action Required (EST/Billing): Partners must review this coming change with customers and discuss the best option for their business needs to avoid unexpected billing.
• April 30, 2026 (End Date):
  • Key Change: End date for the extended Windows 365 Promotion, which offers a 20% discount for all new customers.
  • Action Required: Use the promotion to introduce new customers to Windows 365 Cloud PCs.

What are the key updates for Microsoft partners?

Partners were required to ensure their tax and bank information was accurate and complete in their Partner Center profiles. Failure to update this data by the October 15, 2025 deadline could result in account restrictions, including the inability to receive payments.

The Targeted M365 E3 promotion offers a 20% discount on annual subscriptions for select customers with at least 500 base licenses and fewer than 50 pre-existing M365 E3/E5 licenses. The promotion requires a minimum purchase of 250+ licenses and ran from October 13, 2025, through December 31, 2025.

The Windows 365 promotion provides a 20% discount for all new Windows 365 customers on any contract duration for the first year. This promotion was extended and is now available through April 30, 2026.

1. The extended service term (EST) allows customers to maintain access to services after a subscription expires while they decide on next steps, replacing the free grace period. Beginning April 1, 2026, subscriptions purchased on or after April 1, 2025, that expire on or after April 1, 2026, with auto-renew turned off, will automatically be moved into an EST.
2. Microsoft is mandating multifactor authentication (MFA) for all Partner Center APIs to improve security. All APIs were MFA-enabled for partner testing by September 30, 2025, and full enforcement, where API calls without MFA will be blocked, will begin on April 1, 2026.
3. Effective November 1, 2025, Microsoft reintroduced Microsoft 365 and Office 365 Enterprise suites with Teams globally, alongside the existing "no Teams" suites. This change also included price adjustments, decreasing the price for suites without Teams and increasing the price for the Teams Enterprise standalone offering.
4. The Targeted M365 E3 promotion offers a 20% discount on annual subscriptions for select customers with at least 500 base licenses and fewer than 50 pre-existing M365 E3/E5 licenses. The promotion requires a minimum purchase of 250+ licenses and ran from October 13, 2025, through December 31, 2025.
5. Deployment Accelerators are described as post-sales programs that help partners encourage customer adoption of advanced security solutions, with Microsoft co-investing to offset costs. As of October 1, 2025, four new workshops were available: CSP Deployment Accelerator for Defender and Purview Suites, CSP Deployment Accelerator for ME3/ME5, Microsoft Sentinel Accelerator, and Microsoft Defender for Cloud Accelerator.
6. As of October 1, 2025, Microsoft no longer issues MAF letters based solely on Microsoft AI Cloud Partner Program membership. Microsoft resellers must now request these letters through their authorized Microsoft distributor, while authorized CSP partners must open a support ticket in Partner Center.
7. As of October 1, 2025, Microsoft 365 E5 Security was renamed the Microsoft Defender Suite, which focuses on handling external cyber threats. Microsoft 365 E5 Compliance was renamed the Microsoft Purview Suite, which focuses on managing internal data risks and compliance.
8. Partner Journey Maps are resources provided by Microsoft that offer detailed navigation for partners along the journey of the company's highest priority transformations. They help partners understand and manage significant program changes and updates.

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What is the critical deadline for partners to correct their tax and bank profile data in Partner Center, and what is the consequence of failing to meet this deadline?

The deadline for partners to ensure that all required fields in their tax and bank profiles are complete and accurate is October 15, 2025. Partners must take this action because Microsoft has noted that some partner data is inaccurate, incomplete, or outdated, which poses a serious threat to legal obligations and business performance. Failure to update this information by the deadline may lead to account restrictions, including the inability to receive payments, or other enforcement actions.

What significant changes regarding Microsoft 365 and Teams licensing became effective globally on November 1, 2025, due to the agreement with the European Commission?

Effective November 1, 2025, the changes finalized with the European Commission regarding Teams licensing include the reintroduction of the Microsoft 365 and Office 365 Enterprise suites with Teams globally. To implement required price deltas, Microsoft will decrease the price of Enterprise and Business suites without Teams, and will increase the price of Teams Enterprise standalone. These changes are reflected on the November 1 CSP price list.

When does mandatory Multifactor Authentication (MFA) for Partner Center API access become fully enforced, and what action is required of partners before this date?

Full enforcement of MFA for Partner Center APIs will begin on April 1, 2026. After this date, any API calls made without MFA will be blocked. Partners must plan and allocate resources to update their systems to integrate MFA into their API calls and ensure compliance with the new security requirements.

What are the new names for the Microsoft 365 E5 mini-suites, effective October 1, 2025, and what types of protection do they offer?

Beginning October 1, 2025, the Microsoft 365 E5 mini-suites were renamed:

• Microsoft 365 E5 Security becomes the Microsoft Defender Suite. This suite provides integrated protection against external cyber threats, including identity security (e.g., Entra ID P2, Defender for Identity), email and collaboration security (MDO P2), and endpoint security (MDE P2).
• Microsoft 365 E5 Compliance becomes the Microsoft Purview Suite. This suite helps organizations handle internal data risks, enabling the discovery, classification, and labeling of sensitive data, as well as protecting Microsoft 365 Copilot data and streamlining investigations with eDiscovery.

When are Extended Service Terms (ESTs) SKUs available for testing in the CSP sandbox environment, and what is the required action for CSP partners regarding ESTs?

Extended Service Terms (ESTs) SKUs became available for testing in the CSP sandbox environments at the end of the day on November 3, 2025. CSP partners, particularly distributors and direct bill partners, should start getting prepared by reviewing the technical details and coordinating with their technical teams to schedule necessary system updates. They must also review the coming change with their customers to discuss the best options before the end of their service terms to avoid unexpected billing.

What is the enforcement date for the Partner of Record (POR) API validation, and what must indirect resellers confirm before this date?

The Partner of Record (POR) API enforcement begins on December 1, 2025. Before this date, indirect resellers must take several actions, including:

• Verifying their Partner Location Account (PLA) ID in Partner Center.
• Ensuring their PLA ID is linked to an active CSP indirect reseller tenant (or enrolling for CSP authorization if it is not).
• Confirming their tenant’s business address matches their distributor’s CSP region.

Which two major Microsoft 365 promotions are scheduled to end on December 31, 2025?

The following two promotions are set to end on December 31, 2025:

• The Extended Microsoft 365 E5 15% Off Accelerate Annual Promotion
• The new Targeted Microsoft 365 E3 Annual CSP Promotion (which offers 20% off the net partner price)

Under the new policy effective April 1, 2026, when will a subscription automatically move into the Extended Service Term (EST)?

Starting April 1, 2026, the free grace period for services on non-renewed subscriptions will be discontinued. A subscription will automatically be moved into the Extended Service Term (EST) upon expiration if all three of the following conditions are met:

1. The subscription was purchased on or after April 1, 2025.
2. The subscription expires on or after April 1, 2026.
3. The auto-renew feature is set to off.

Details and Key Actions

I. Security and Compliance Mandates:

Microsoft is implementing several mandatory changes aimed at enhancing the security posture of the partner ecosystem and ensuring legal and financial compliance.

Mandatory Multifactor Authentication (MFA)
To protect against unauthorized access, Microsoft is enforcing MFA across all Partner Center portal pages and APIs. Partners must comply to avoid service disruptions.

• Partner Center Portal: MFA has been required for all portal pages since August 30, 2025.
• Partner Center APIs: APIs were enabled for MFA integration and partner testing by September 30, 2025.
• Full API Enforcement: Mandatory MFA for all Partner Center API access will begin on April 1, 2026. Any API calls made without MFA will be blocked after this date.

Partner of Record (POR) Validation Enforcement
New readiness resources have been released to prepare distributors and indirect resellers for POR validation changes.

• Enforcement Date: POR validation will be required on new subscription orders and changes to existing subscriptions starting December 1, 2025.
• Affected Transactions: The validation applies to new orders, license count adjustments, billing plan or term changes, partner-to-partner transfers, and legacy-to-new commerce migrations. Auto-renewed subscriptions are not impacted.
• Distributor Actions: Distributors are instructed to use the new POR validation API for real-time compliance checks, familiarize themselves with error codes, and use the Reseller Eligibility report for bulk checks only. 
• Indirect Reseller Actions: Indirect resellers must verify their Partner Location Account (PLA) ID in Partner Center, ensure it is linked to an active CSP indirect reseller tenant, and confirm their tenant's business address matches their distributor's CSP region.

Partner Data Accuracy
Partners were required to update their account information to avoid restrictions on payments and other account functions.

• Action Required: Ensure all tax and bank profile information is accurate, complete, and up-to-date. This includes the full legal name, legal address, and a valid business identifier (e.g., VAT ID) for organizations.
• Deadline: The deadline for these updates was October 15, 2025. Inaccurate data poses risks to business performance, reputation, and legal obligations.

Additional Security and Compliance Updates

• Security Workspace: The Security workspace in Partner Center began rolling out to all indirect resellers, with full access expected by early November 2025.
• Redesigned Security UI: The Security requirements experience has been redesigned to clearly separate mandatory and recommended controls, helping partners prioritize actions for their CSP authorization.
• Refreshed Sales Compliance Resources: For fiscal year 2026, Microsoft has released an updated Sales deal execution playbook and a Partner compliance readiness training gallery to help partners drive compliant deal execution and stay audit-ready. The legacy playbook site was retired on September 30, 2025.

II. Major Licensing, Pricing, and Subscription Model Changes

Significant changes are being implemented for Microsoft 365 licensing and the Cloud Solution Provider (CSP) subscription lifecycle.

Global Restructuring of Microsoft 365 and Teams
Following an agreement with the European Commission, Microsoft is making global changes to the licensing, pricing, and sales practices for Microsoft 365, Office 365, and Microsoft Teams to enhance flexibility and support open ecosystems.

• Effective Date: November 1, 2025
• Key Changes:    
  • Reintroduction of Bundled Suites: Microsoft 365 and Office 365 Enterprise suites with Teams are being reintroduced globally.
  • Price Adjustments: To create the required price deltas, Microsoft is decreasing the price of Enterprise and Business suites without Teams, as well as Microsoft 365 F3 (MF3) without Teams.
  • Teams Standalone Price Increase: The price of the Microsoft Teams Enterprise standalone offering will increase.
• Partner Impact: These changes were reflected in the November 1, 2025, CSP price list. Partners can choose how to reflect these pricing changes to their customers.

Introduction of Extended Service Terms (EST)
A new capability path, Extended Service Terms (EST), is being introduced for CSP subscriptions, which will replace the free grace period for non-renewed subscriptions.

• Discontinuation of Grace Period: The free grace period for accessing services on expired subscriptions will be discontinued effective April 1, 2026. 
• Post-Expiration Options: Customers and partners will have three choices for subscriptions after expiration:
  • Renew to a new term.
  • Cancel at the end of the term (services end immediately). 
  • Move to an Extended Service Term.
• EST Details:
  • Pricing: Priced at the standard monthly rate with a 3 percent uplift.
  • Flexibility: Customers can cancel anytime, and billing will be prorated.
• Automatic Enrollment: Beginning April 1, 2026, subscriptions will be automatically moved into an EST at expiration if they meet all three of the following conditions:
  • Purchased on or after April 1, 2025.
  • Expires on or after April 1, 2026.
  • Auto-renew is set to off.
• Partner Readiness Timeline:
  • Sandbox Testing: CSPs can begin testing EST capabilities in their sandbox environments starting November 3, 2025.
  • New Cancellation Option: The "cancel at end of term" option will be available in January.

The following product SKUs are available for EST sandbox testing as of November 2025:

III. Promotions and Partner Opportunities

Microsoft has announced a new targeted promotion and extended several existing offers to help partners drive sales.

Microsoft 365 Promotions

• New Targeted Microsoft 365 E3 Annual Promotion:
  • Discount: 20% off the net partner price. 
  • Duration: October 13, 2025, through December 31, 2025. 
  • Eligibility: Targeted to select organizations with at least 500 base O365/M365 licenses, CSP as the primary purchase channel, and fewer than 50 pre-existing ME3/ME5 licenses.
  • Minimum Purchase: 250+ licenses.
  • Customer Eligibility Lists: Available via Cloud Ascent starting October 25.
• Extended Microsoft 365 E5 15% Off Accelerate Annual Promotion:
  • Extension Date: The promotion, which launched January 1, 2025, has been extended through December 31, 2025.
  • Purpose: To drive upsell conversations with customers new to Microsoft 365 E5.
• Windows 365 Promotion
  • Offer: A 20% discount on Windows 365 licenses for all new customers.
  • Extension Date: The promotion has been extended until April 30, 2026.
  • Terms: The discount applies to any contract duration for the first year of the subscription (or the remainder of an Enterprise Agreement, whichever is shorter) and is available once per customer.
• Microsoft Sentinel Promotion
  • New Tier: A new 50GB commitment tier for Microsoft Sentinel is available in public preview.
  • Promotional Pricing: Available from October 1, 2025, through March 31, 2026.
  • Price Lock: Customers who purchase during the promo window will lock in their pricing until March 31, 2027.
  • Discount: Offers up to a 32% discount off the pay-as-you-go price (region-dependent).

IV. Partner Program and Product Updates

Key changes have been announced for the Microsoft AI Cloud Partner Program, along with significant product renaming and new partner resources.

Microsoft AI Cloud Partner Program Updates

• Manufacturer’s Authorization Form (MAF) and Certification Letters: As of October 1, 2025, these letters are no longer issued based solely on program membership.
  • Resellers purchasing through a distributor must request letters from their distributor.
  • Authorized CSP partners can open a support ticket in Partner Center.
• SAP on Microsoft Azure Specialization: A new skilling requirement, the "Run SAP on Microsoft Cloud" training path, has been added and will be validated during the audit process.

Product Renaming: Microsoft Defender and Purview Suites

Effective October 1, 2025, the Microsoft 365 E5 mini-suites have been renamed to better reflect their capabilities in handling external cyber threats and internal data risks.

• Microsoft 365 E5 Security is now the Microsoft Defender Suite.
  • Components: Entra ID P2, Defender for Identity, MDO P2, MDE P2, and Defender for Cloud Apps.
• Microsoft 365 E5 Compliance is now the Microsoft Purview Suite.
  • Capabilities: Includes Information Protection and DLP, Insider Risk Management, protection for Microsoft 365 Copilot data, Compliance Manager for regulatory adherence, and eDiscovery workflows.

New Security Deployment Accelerators
As of October 1, 2025, four new post-sales Deployment Accelerator workshops are available to help security partners encourage customer adoption of advanced solutions. Partners can earn funding based on deployment and usage milestones.

• CSP Deployment Accelerator for Defender and Purview Suites
• CSP Deployment Accelerator for ME3/ME5
• Microsoft Sentinel Accelerator
• Microsoft Defender for Cloud Accelerator

V. Partner Enablement and Communication Resources

Microsoft continues to provide a comprehensive set of resources to keep partners informed and prepared for program changes.

• Monthly Updates: The CSP Bimonthly Update newsletter and partner launch calendars offer consolidated views of all recent and active announcements and program updates.
• Community Engagement: The monthly CSP Community Q&A session provides a forum for partners to ask questions about operational changes. Questions can be submitted up to 48 hours before each call.
• Readiness and Training:
  • CSP Spotlight Webinars: Monthly webinars covering the latest CSP licensing information.
  • Partner Journey Maps: Provide detailed navigation for Microsoft's highest-priority transformations.
  • Dedicated CSP Technical Training: Sessions with subject matter experts to answer technical questions.
• Blogs: The Partner Center blog series covers recent improvements, upcoming technical and API changes, and guidance on strengthening security and customer trust.

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Recommendations

1. Enforce MFA Readiness: Plan system updates now for the mandatory April 1, 2026, MFA enforcement on Partner Center APIs.
2. Ensure POR Compliance: Finalize POR API implementation and PLA verification by December 1, 2025, to avoid order disruptions.
3. Manage EST Billing Shift: Proactively communicate the end of the free grace period and the new Extended Service Term (EST) auto-enrollment policy (effective April 1, 2026) to customers to ensure continuity and prevent surprise charges.