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MCAPS Start FY26: A Summary for Microsoft Partners

Summary:

Learn key FY26 takeaways from MCAPS for Microsoft Partners, including strategic priorities, investments, Microsoft AI Cloud Partner Program enhancements, and updated solution area structure.

MCAPS Start FY26: A Summary for Microsoft Partners

Learn key FY26 takeaways from MCAPS for Microsoft Partners, including strategic priorities, investments, Microsoft AI Cloud Partner Program enhancements, and updated solution area structure.

MCAPS Start FY26: A Summary for Microsoft Partners

Estimated Read Time: 5 minutes
Intended Audience: Microsoft Partners

Microsoft’s recent MCAPS (Microsoft Customer and Partner Solutions) for Partners event kicked off a new AI-first era for FY26, placing AI-driven innovation at the center of its strategy and partner ecosystem. 

With customizable agents, Copilots, and a growing class of AI-powered organizations, Microsoft’s FY26 strategy empowers Microsoft Partners to lead with innovation and stay aligned with the pace of technological advancements. 

As the trusted marketing partner for Microsoft Partners, Maven Collective Marketing is here to break down what you need to know to get ready for FY26. 

1. Becoming a Frontier Firm

At MCAPS Start for Partners, Microsoft introduced the Frontier Firm modelan AI-first framework for organizations integrating AI agents throughout their operations and business functions. 
Becoming Frontier - Success Framework: Enrich employee experiences, reinvent customer engagement, reshape business processes, bend the curve on innovation; Approach: AI business solutions, Cloud & AI Platforms, Security; Priorities: Copilots on every device across every role, M365 and D365 core execution, frontier AI solutions, migrations and modernization, securing the cyber foundation

According to Microsoft, Frontier Firms are defined by their ability to: 

  • Enrich employee experiences 
  • Reinvent customer engagement 
  • Reshape business processes 
  • Bend the curve on innovation 

To support this transformation, Microsoft is realigning its go-to-market efforts around three core focus areas: 

  • AI Business Solutions 
  • Cloud & AI Platforms 
  • Security

No immediate changes are being made to Partner designations or specializations. Microsoft Partners

will have at least six months to prepare, with updates expected to roll out gradually starting in early 2026. 

As outlined by Judson Althoff, Microsoft’s EVP and Chief Commercial Officer, FY26 priorities will center on: 

  • Copilots on every device and across every role 
  • Strong execution in Microsoft 365 and Dynamics 365 
  • Frontier AI innovation and adoption 
  • Cloud migrations and modernization 
  • Securing the entire technology stack 

2. Azure Accelerate

Another key announcement from MCAPS was the launch of a new centralized offering, Azure Accelerate, that unifies Azure Migrate and Modernize, Azure Innovate, and Cloud Accelerate Factory.   It gives partners direct access to trusted Microsoft experts, unlocks new investment opportunities, and provides support across diverse customer scenarios.  To back this commitment, Microsoft is increasing Azure-related partner incentives by 70% YoY, making it one of the most significant investments in the program to date. 

3. AI Focus in FY26

Microsoft made it clear: adopting AI across every solution, process, and engagement is the foundation of partner success in FY26. Partners are encouraged to reimagine their business models and workflows around AI-powered experiences with customizable agents, Copilots, and AI-infused platforms. 

According to Gartner, the global AI services market is expected to reach $609 billion by 2028, fueled by both traditional AI (like predictive analytics) and new generative AI capabilities. 

Let’s explore the key opportunities for partners in FY26: 

  • Scale with AI 

Deploying Copilots across Microsoft 365, Dynamics 365, and industry-specific platforms is the path to high productivity. With Copilot Studio and Azure-integrated tools, Microsoft Partners can build intelligent, customizable agents that act on behalf of users and streamline complex processes.  

  • Become a Trusted AI Advisor 

Success starts internally. By adopting Microsoft’s AI stack and becoming Customer Zero, you showcase firsthand how valuable these tools are and build trust with your clients. Microsoft is also increasing funding for vertical-specific Copilot scenarios, including healthcare and financial services, giving partners a chance to differentiate and lead with deep industry expertise. 

  • Leverage Microsoft AI Cloud Partner Program 

The Microsoft AI Cloud Partner Program (MAICPP) continues to evolve, offering expanded technical benefits, enhanced sales enablement, and exclusive AI certifications. Partners gain access to AI-focused go-to-market resources and greater visibility through Microsoft’s commercial marketplace, opening the door for co-sell opportunities and accelerating deal cycles across the ecosystem. 

  • Activate the Channel to Serve SMBs 

Microsoft predicts that in the SME segment, the total addressable market (TAM) will reach $777 billion by FY26 for organizations with fewer than 3,000 employees. New AI-powered buying experiences are created to reach all technology buyers, not just IT directors or decision-makers, enabling Partners to connect earlier in the sales cycle. Marketing benefits built specifically for Channel Partners are now generally available, helping you scale demand generation efforts faster. 

4. Security is Non-Negotiable

As discussed during MCAPS, cybersecurity remains at the center of Microsoft’s FY26 strategy. Cyber threats have grown 5x yearoveryear, with password attacks doubling in the same time frame. As GenAI helps us be more productive, it also introduces new risks, making cyberattacks faster, smarter, and harder to detect.
Infographic from Microsoft’s MCAPS Start for Partners 2025 showing how adversaries may exploit generative AI, including malware generation, password cracking, phishing and social engineering, disguising malicious code, command and control communication, and deepfakes (data, email, voice).
Adversaries use gen AI in creative ways: malware generation, automated vulnerability discovery, customizing exploits, password cracking, phishing and social engineering, disguising malicious code, command and control communication, deepfakes

In response, Microsoft is doubling down on security to help Partners strengthen their security posture across every customer engagement. That starts with simplified solution plays, enabling Partners to lead more effective, differentiated conversations around security.  

Cybersecurity Incident Response (CIR) has been enhanced to accelerate threat detection and remediation, and security is now infused across every solution area. 

As threats evolve, Partners are being called to secure the baseline, acquire new customers, and scale security services across SMBs and commercial segments. 

5. Restructured Solution Areas

Starting in 2026, Microsoft will consolidate the existing six solution areas into three broader, integrated solution areas: 
Graphic from Microsoft’s MCAPS Start for Partners 2025 showing the evolution of solution areas: AI Business Solutions, Cloud & AI Platforms, and Security. It highlights that benefits, skilling, designations, partner marketing, co-sell, and incentives will align with these new go-to-market categories.
Solution area evolution to 3 new key areas: AI Business Solutions, Cloud & AI Platforms, Security
  • AI Business Solutions: This area brings together Microsoft 365, Dynamics 365, and Copilot capabilities into a unified focus on AI-powered business applications.  
  • Cloud and AI Platforms: Lead with Frontier AI innovations while accelerating cloud migrations and building powerful solutions with tools like Azure AI Foundry, Microsoft, and GitHub. 
  • Security: This segment emphasizes strengthening security postures, mitigating sophisticated cyber risks, and supporting compliance in the AI-first world. 

New designations and specializations previewed include: 

  • Device Designations (launching early 2026) 
  • Distributor Designations 
  • Support Designations (public preview will be available in a few months) 
  • Clinical Apps Specialization, for example Dragon Copilot (details will be available later this year) 
  • Sovereign Cloud Specialization (going live next year)

With so many updates rolling out this and next year, now is the ideal time to assess how your current specializations align with Microsoft’s future direction and start refining your offerings, marketing, and sales strategy around these updates. 

Turn Microsoft’s FY26 Priorities into Opportunities for Your Growth

This year’s MCAPS priorities offer Microsoft Partners a powerful advantage, encouraging you to integrate AI across core business functions, strengthen security posture, and evolve your go-to-market strategy.

Navigating these shifts in a fast-moving Microsoft ecosystem can be complex. That’s where Maven Collective comes in. With a proven track record supporting the growth and success of 500+ Microsoft Partners worldwide, we bring the expertise you need to stand out. 

Let’s connect to explore how we can support your FY26 goals and strengthen your position as a Microsoft Partner. 

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