Microsoft Partners are integral to accelerating Microsoft customer’s solutions and success. In recognition, Microsoft has brought about changes to partner incentives and investments in fiscal year 2023. The co-op program running across two six-month (fiscal half-year) periods: FY23 H1: July 1, 2022 – December 31, 2022, FY23 H2: January 1, 2023 – June 30, 2023, in which funds earned in one 6-month period are used in the next 6-month period, is transforming to enable partners to deliver value to customers.

From July 2022, Microsoft has updated the incentives and investments portfolio to focus on three design principles, aligned to Microsoft’s business priorities, partner opportunity, and customer needs.

Here are the updates coming to partner incentives and incentive programs:

1. Partners that have established effective relationships with enterprises will see no change in the overall effective rate as it remains consistent with that of FY22 program rate.
2. Cloud Solution Provider (CSP) partners continue to benefit from Microsoft investments through breadth earning opportunities in the Microsoft Commerce Incentives (MCI). In the new commerce experience, Microsoft is adjusting Modern Work and Security core program rates for Direct Bills and Indirect Reseller Partners to be consistent with the FY22 legacy CSP incentives program.
3. Through the Partner Admin Link, Microsoft is rebalancing incentives on Azure consumed revenue. This rewards partners that display their expertise with specializations.
4. Microsoft Partners will see new activity-based incentives with Modern Work, Security, Business Applications, and Azure in FY23, as well as an improved operational experience in the Microsoft Commerce Incentives program.
5. The most recent addition to the list of changes is the cooperative marketing funds launching on November 1st, 2022. This date onwards, partners participating in Microsoft Commerce Incentives (MCI) program will begin earning cooperative marketing funds. However, to earn co-op funds, partners must be enrolled in the MCI program and have a completed bank and tax profile for the co-op earning type in Partner Center and meet program requirements. Please note, this profile is separate from the current rebate bank and tax profile. Partners will see incentives split in 60% rebate – 40% co-op earning applied to the MCI Microsoft 365, Dynamics 365, and Azure new commerce Cloud Solution Provider (CSP) engagements. You can dive into further incentive details at aka.ms/partnerincentives.