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Hard to believe it but we're now in August ... and August 1 brought a cluster of simultaneous changes: a new trial motion for SMB Copilot, a security product end-of-life with a credit pass-through requirement, and a compliance update to the Partner Code of Conduct that is now enforceable. Add two certification retirements at the end of the month and an important structural change to how Security specializations are earned ... it's a lot to take in. We're sharing a subset of what our clients are watching this week; connect with us if you want the deep dive.
Bonus: Partner1's Microsoft Marketplace Assessment helps you benchmark your current marketplace motion against FY27's new co-sell framework in seconds!
AUGUST 1: CSP partners, rejoice! You now have a free Copilot trial to hand to SMB customers
Starting August 1, CSP partners can offer a free 25-user, 30-day Microsoft 365 Copilot Business trial through CSP New Commerce. The program is designed as a structured adoption framework to convert SMB customers from trial to paid. Microsoft has published a launch kit with partner-ready assets, customer guidance, and campaign materials.
Also AUGUST 1: MDTI is retired so if your customers were on the standalone SKU, Microsoft owes you a credit
Microsoft Defender Threat Intelligence (MDTI) reached end of life on August 1. The standalone SKU is gone and MDTI capabilities are now included at no additional cost in the Microsoft Defender portal for any customer with Microsoft Defender or Microsoft Sentinel. So, if you have CSP customers with active MDTI subscriptions, Microsoft will issue a credit memo to your partner account for the remaining subscription term. You are responsible for passing that credit through to your end customers. This does not happen automatically.
Reminder for FY27: Microsoft raised the bar on Security specializations and gave you six months to catch up: Starting in July, all four Microsoft Security Specializations moved from customer references to an independent, third-party capabilities audit. The audit must demonstrate that you can deliver these solutions in real customer environments. It is conducted by an independent auditor, funded by the partner, and remains valid for two years. Existing partners who already hold these specializations received a six-month extension to their anniversary date to prepare.
NOW: Microsoft Marketplace adds intelligent discovery, better trials, and new deal-starting tools
Microsoft announced a set of new Marketplace capabilities this week. Intelligent discovery (in preview right now) matches customer intent signals to partner solutions, making your listing more findable in the context of what customers are already searching for. Trial experience improvements are designed to convert more customer interest into paid revenue. Private offer requests let customers initiate deal conversations directly from your listing, which shortens the time to first conversation. Custom contract lengths give you more flexibility on deal structure. Multiparty private offers also continue to expand.
AUGUST 31: Two certifications retire this month: PL-200 and AZ-500
The bigger picture
What this week shows is that Microsoft is raising the bar on who qualifies as a credible partner and lowering the barrier for partners to go sell. The audit-based Security specializations make the credential harder to earn and so they are more valuable. The Copilot trial makes it easier to get customers started without a procurement cycle. MDTI consolidation removes a paid product that duplicated what customers already have in Defender.
As we've previously noted, Microsoft is concentrating investment and co-sell priority on partners who can prove capability, while expanding the opportunities to sell more through the Microsoft ecosystem.
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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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