Pax8 and Microsoft Updates for November 2026

Microsoft, MSP

November 3, 2026

Pax8

Check out the latest updates on what managed service providers (MSPs) and managed intelligence providers (MIPs) need to know about Microsoft in November 2026.

Program Updates

Visit Pax8 at Microsoft Ignite November 17-20 in San Francisco

Pax8 will be on-site for Ignite, Microsoft’s annual conference for IT professionals and partners. Visit Pax8 at booth 1733 and be sure to attend our breakout session, “Build the Managed Intelligence Stack for SMBs with Pax8 and Microsoft,” Wednesday, November 18, from 11:30am-12:15pm PT. You’ll learn how to turn Microsoft AI and security solutions into profitable SMB offers that drive adoption and fuel growth.

Here’s what else we have in store for Ignite:

Scan your badge for your chance to win a trip to Beyond San Diego, taking place June 6-8, 2027.
Connect with a Microsoft expert to discover new ways to help your SMB clients grow.
Learn how the Pax8 CEP connects businesses with trusted IT experts.
Register for Beyond, which unites our partners for three days of community, education and innovation.

Learn more here.

Microsoft Partner Agreement Update

Microsoft has updated its Microsoft Partner Agreement (MPA) and CSP Program Guide. Changes focus on privacy, security, compliance and evolving business practices.

The updated agreement will automatically take effect for most CSP partners December 1, 2026. No action is required, though partners can accept the new terms early in Partner Center.

CSP Software Price Increase

Microsoft’s 5% price increase for CSP software subscriptions with annual-term commitments billed monthly has taken effect.

Affected products include SQL Server, Windows Server, Client Access Licenses and System Center. Annual-term commitments billed annually or upfront, monthly-term commitments billed monthly and perpetual software licensing are outside the scope of the change. The update preserves monthly billing flexibility while aligning pricing across sales channels.

Introducing Growth Margin

Microsoft has introduced Growth Margin, which programmatically rewards partners whenever they drive qualifying customer growth. Eligibility is evaluated at the customer tenant level and can be earned through three scenarios: new-to-offer, seat expansion or strategic SKU mix.

Base margin remains the standard rate for renewals and ongoing subscriptions. Growth margin is a higher total margin for qualifying growth and already includes base margin, so the two are not stacked.

Eligible CSP license-based offers include select products such as Microsoft 365 Copilot, Microsoft 365 E5, Microsoft 365 E7, Microsoft Defender Suite, Microsoft Purview Suite and Windows 365 Enterprise.

Azure Flex Spend Plans

Microsoft is introducing Flex Spend Plans, a new consumption-based CSP offer construct. With Flex Spend, a customer commits to a defined amount of consumption spend over a term and is billed monthly rather than paying the full amount upfront. The committed amount can be consumed at any pace during the term, and one agreement covers eligible products and services with full-year commitment coverage and auto-renewal.

Flex Spend Plans require an Azure plan and are currently being tested in the CSP sandbox as a preview, not a production offer. Pax8 is validating purchase, billing and reconciliation workflows. No partner action is required, and a release date has not been announced.

Usage-Based Billing on by Default for New Copilot Business Licenses

Effective December 1, 2026, new Microsoft 365 Copilot Business licenses purchased through CSP, including standalone licenses and bundles, will have usage-based billing by default. Either an Azure subscription will be used to bill usage, or Microsoft will automatically enable an Azure Plan subscription for usage. The default configuration uses pay-as-you-go billing with a preset monthly limit of 4,000 copilot credits per user, per month. Microsoft and Pax8 will provide more information soon.

Microsoft Change of Channel Partner Updates

Microsoft clarified that the following scenarios are no longer considered Change of Channel Partner events:

A customer changes resellers but remains with the same distributor
A reseller changes distributors while maintaining the same customer relationship
Authorization changes where the partner retains the same PGA

You’ll still earn applicable incentives in these scenarios if you meet normal program requirements. Microsoft also confirmed there will be no impact to July earnings as these updates were made before earnings processing.

This is a positive development for Pax8 and our partners. The update removes unintended impacts associated with distributor and reseller transitions while keeping the policy focused on its original goal: rewarding net-new customer growth and value creation rather than partner-to-partner customer transfers.

Promotions and Offers

Current Microsoft promotions include:

Microsoft 365 E3 three-year offer: 10% off net price for first-time purchases, with a minimum of 100 seats, through December 31, 2026.
Microsoft 365 E3 one-year targeted offer: 20% off for at least 250 seats, through December 31, 2026.
Purview Suite for Business Premium: 50% off a one-year term with purchase of a Microsoft 365 Copilot annual subscription, for 10 to 300 seats, through December 31, 2026.
Microsoft Copilot Business: 15% off a one-year term, up to 300 seats, through December 31, 2026.
Business Basic and Copilot Business: 25% off a one-year term, up to 300 seats, through December 31, 2026.
Microsoft 365 Copilot for Nonprofit: promotional tiers range from 15% to 40% based on seat count, through December 31, 2026.

Eligible promotions are applied after checkout through the promotions API and appear in the Pax8 Marketplace as Spiff Price Adjustments. Promotional pricing is applied before margins are calculated and distributed.

Cloud and AI Platforms Update

Azure Migration Offer

Through December 31, 2026, the Pax8 Azure Migration Offer provides a funded assessment of non-Azure infrastructure and a roadmap for migrating eligible workloads. Global Pax8 partners at the Voyager Alliance Ignite tier or above can qualify after executing a statement of work and Funding Addendum.

If the assessment leads to an Azure deployment within 30 days that reaches at least $200 in monthly Azure consumed revenue and all other requirements are met, Pax8 will issue a one-time $2,000 credit memo. Alliance Members and Azure Government customers are not eligible.

Ready to start? Complete the Azure Migration Offer interest form.

AI Business Solutions Update

Meet the New Copilot

Microsoft has made a new Copilot experience available to Frontier members (GA has not yet been announced):

Home brings Chat and Cowork together and adds Office in Copilot for creating and updating editable Word, Excel and PowerPoint files.
Code lets users describe an app, dashboard, automation or workflow in natural language and have Copilot build it.
Autopilot, formerly called Scout, is a proactive cloud-hosted agent with its own identity that continues working across Teams and Outlook.

Copilot in 30

The Copilot in 30 CSP trial offering gives partners a repeatable way to help first-time Copilot customers evaluate Microsoft 365 Copilot Business. It includes 25 users for 30 days and is available in the Pax8 Marketplace. At the end of the term, partners can cancel the trial or convert it to a paid subscription with their choice of quantity, commitment and billing terms.

The motion follows five stages: identify target customers, create a success plan, activate the trial, guide the customer experience and convert successful evaluations to paid seats. The Copilot Success Planner creates a tailored 30-day adoption plan based on a customer’s role and priorities.

Review the Copilot in 30 launch kit and partner microskilling.

Pax8 + Zensai End Customer Enablement Promotion

Through December 31, 2026, partners that enroll before transacting and purchase at least 10 net-new seats of an eligible Copilot offer can receive an equal number of Zensai licenses for one year at no cost. Eligible prerequisite offers include Microsoft 365 Copilot Business, Microsoft 365 Copilot for Nonprofit and the Copilot Business plus Microsoft 365 Business Premium bundle. The matching Zensai licenses must be purchased within 30 days of the original Copilot purchase.

To participate, complete the Pax8 + Zensai interest form.