We monitor the Microsoft partner ecosystem, so you don't have to.
This week was another busy one. Microsoft set a hard date for passkey auto-enablement with no opt-out path, CSP margin is getting restructured in 60 days, Dynamics NAV partners have a margin deadline that most haven't mapped out yet and and the Solutions Partner badge names most of your marketing materials refer to no longer exist. We're sharing a subset of what our clients are watching this week.
Bonus: Partner1's Microsoft Marketplace Assessment helps you benchmark your current marketplace motion against FY27's new co-sell framework in seconds!
NOW: The Solutions Partner badge names your clients see on your copy no longer exist: Microsoft updated Solutions Partner designation names this week. The new names are AI Business Solutions, Cloud & AI Platforms, and Security.
SEPTEMBER 1: Passkeys go default and SMS/voice authentication has an end date so it's time for an MFA audit. Microsoft will auto-enable passkeys for all accounts on September 1, 2026. There is no opt-out. SMS and voice authentication will be fully retired on February 1, 2027.
OCTOBER 1: Microsoft is restructuring CSP base margins on core M365 SKUs: get rewarded for net-new growth this FY. Model the impact on your current revenue before the end of August - renewal pricing conversations happening now should already be factoring in the October 1 change.
DECEMBER 1: Review Dynamics NAV margin deadlines
SEPTEMBER 2026: ISV Success is being replaced (we first flagged this at the end of June - here are the details you've been waiting for) Microsoft is replacing the ISV Success program with Frontier Accelerate in September 2026. Existing ISV Success participants will be automatically transitioned.
.... and more that our clients are receiving weekly in their inbox, along with details on the shortlist above.
The bigger picture
What this week's changes have in common is that Microsoft is tightening timelines across almost every layer of partnering: authentication, margins, legacy product support, program structure, and product naming. So, manage your Microsoft partnership operations proactively this FY; if you aren't already - let's get started here.
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This edition of Bits & Bytes covers the Microsoft partner ecosystem for CEOs, operators, and practice leaders. Partner1® is the premier partner activation firm built by former Microsoft executives. We help B2B companies grow profitably and globally through partner ecosystem-led growth.
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