We monitor the Microsoft ecosystem, so you don't have to. September 7 was Labor Day in the U.S. so we're publishing a day later than we normally do.
This week Microsoft provided more details around CSP pricing changes everyone has been asking about (reminder: it takes effect at renewals starting in three weeks). Also, a new badge just became your shortest path to Frontier Partner specialization. We're sharing a few key updates from the full list our clients get in real-time.
Bonus: Partner1's Microsoft Marketplace Assessment helps you benchmark your current marketplace motion against Microsoft's FY27 framework in seconds!
OCTOBER 1: The 5% CSP cost-of-capital uplift is now official on CSP software subscriptions with annual-term commitments that are billed monthly (e.g. SQL Server, Windows Server etc.). This doesn't apply to Azure, annual upfront billing, or month-to-month subscriptions, and applies to renewals on or after October 1, 2026.
SEPTEMBER 22 start for two live skilling workshops worth attending: "Modernize apps and databases" (through September 24) and "AI Models in Microsoft 365 Copilot" (through September 23) are both free, hands-on and map to the FY27 solution areas Microsoft is paying significant incentives on.
NOW: A new badge is your shortcut to the Frontier Partner specialization: Earning the Frontier Transformation Engineer badge helps qualify your company for the Frontier Partner specialization. Specializations drive co-sell prioritization and customer-facing credibility, and the early birds of this key designation stand to gain disproportionate attention from the Microsoft field. Now is the time to get started on this pathway if you haven't already.
The big picture
As we mentioned last week, Microsoft is consolidating around FY27 Frontier Accelerate and Marketplace. The cost-of-capital uplift is a signal to replace the way legacy software was sold and update how Microsoft partners sell, through pathways that are more and more clearly defined. Take the Microsoft Marketplace Assessment to ensure your business is FY27-optimized and you're not leaving a single opportunity on the table.
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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