Key 2025 Microsoft Announcements Every Microsoft Partner Should Know
Estimated Read Time: 3 minutes
Intended Audience: Microsoft Partners
As Microsoft enters a new fiscal year, its partner channel strategy is shifting to meet the demands of AI innovation, cloud transformation, and global scalability. For Microsoft Partners, that means adapting quickly to new classifications, tools, and focus areas.
Here are four updates for 2025 that Microsoft Partners should know.
Microsoft Announcement #1: Updated Microsoft Partner Terms
Microsoft has streamlined its partner classification system. In the past, Microsoft grouped partners into: System Integrators (SIs), Cloud Solution Providers (CSPs), Managed Service Providers (MSPs), Independent Software Vendors (ISVs), and Value-Added Resellers (VARs). These classifications often led to overlap and confusion, especially as partners began offering hybrid services. In 2025, Microsoft has simplified this by reclassifying some of their partner terms:
- Channel Partners now include CSPs, MSPs, and VARs.
- ISVs are now referred to as Software Development Companies (SDCs).
- System Integrators (SIs) will still be referred to as SIs.
Microsoft Announcement #2: Microsoft Commercial Marketplace
Microsoft is reshaping its marketplace strategy by bringing together its storefronts, including Azure Marketplace and AppSource, under a single, unified experience. Rather than treating these platforms as separate destinations, Microsoft now refers to them collectively as Microsoft Marketplace, all managed through the Partner Center. This shift simplifies the listing process for partners and streamlines the buyer experience, making it easier to discover and transact with Microsoft-validated solutions.
Leading this transformation is Cyril Belikoff, Vice President at Microsoft, who has envisioned a centralized, transactable Marketplace that simplifies global selling for partners and streamlines the buying experience for customers. With over 645,000 monthly active users and a 200% year-over-year increase in AI-related listings, Marketplace has emerged as a central hub for enterprise software discovery. Microsoft’s vision is to make Marketplace a key driver of co-sell collaboration and scalable revenue for its growing partner ecosystem.
Marketplace as a Transactable Platform
To support this unified ecosystem, a significant shift is the restructuring of Marketplace into a fully transactable platform. Microsoft now handles global tax and compliance, making it easier for smaller partners to sell internationally without a local presence in every country. This simplifies operations and broadens access to global customers, helping partners scale faster while reducing administrative overhead.
Private Offers for Custom Client Deals
Co-Sell Incentives for Microsoft Sellers
Microsoft Announcement #3: New CSP Terms – 3-Year Subscriptions
As part of its evolving CSP program, Microsoft is rolling out three-year subscription terms. This new model gives partners more flexibility to offer long-term pricing packages and helps customers better plan for and manage cloud costs over time. The longer commitment options are designed to provide financial predictability, lock in pricing, and encourage deeper customer engagement. For partners, it also opens the door to building more strategic relationships with clients by offering extended value over multi-year engagements.
Microsoft Announcement #4: Microsoft’s 5 MCAPS Priorities for 2025
In FY25, Microsoft is reinforcing its commitment to helping partners align with the company’s largest growth opportunities. The Microsoft Customer and Partner Solutions (MCAPS) framework represents the five solution areas where Microsoft is investing heavily in innovation, incentives, and co-sell engagement. Understanding these focus areas can guide partners on where to align their offerings and resources for maximum impact this year.
The five MCAPS priorities for FY25 are:
- Copilot on every device: Driving AI productivity by embedding Copilot into every Microsoft product and platform.
- AI design wins: Enabling partners to create competitive advantage through AI-first software, tools, and platforms.
- Cloud migrations: Accelerating enterprise adoption of Microsoft Azure by helping customers move workloads to the cloud.
- AI Studio: Equipping developers and partners with tools to build AI-powered experiences, applications, and use cases.
- Security across the M365 core: Delivering secure, compliant solutions integrated across Microsoft 365 environments.
Together, these MCAPS priorities represent a $660 billion total addressable market (TAM). The priority on Copilot is especially prominent as Microsoft has increased investment in Copilot by 10x and continues to position AI as the center of its growth strategy for FY25 and beyond.
Align Your Strategy with Microsoft’s Announcements for 2025
From partner classifications and commercial marketplace evolution to co-sell incentives and MCAPS priorities, Microsoft’s 2025 announcements represent a major update to its partner ecosystem. By understanding and aligning to these changes, partners can position themselves for long-term success in a competitive environment.
If you’re looking to adapt your strategy, reposition your solution, or improve your marketplace presence, Maven Collective Marketing is here to help. With proven expertise supporting over 500 Microsoft Partners, we specialize in building go-to-market campaigns that align with Microsoft’s priorities and drive measurable results across the ecosystem. Get in touch today.
